“Click to subscribe, call to cancel” is illegal, FTC says (niemanlab.org)

Article summary

The Federal Trade Commission (FTC) has stated that the practice of 'click to subscribe, call to cancel' is illegal, requiring companies to provide an easy and simple cancellation process. This means that if a subscription can be started online, it should also be possible to cancel it online. The FTC will ramp up enforcement on companies that fail to comply with this requirement. Many news organizations have been criticized for making it difficult for customers to cancel their subscriptions, with some requiring customers to call or send a letter to cancel.

Main themes

• subscription cancellation
• consumer protection
• dark patterns
• payment systems
• contract law
• regulatory enforcement

What commenters say

• Requiring customers to cancel subscriptions through difficult or inconvenient means, such as phone calls or letters, is a dark pattern that should be banned.
• Companies should bear the cost of cancellation, rather than passing it on to the customer.
• The current system of paying for goods and services by providing full payment card details is flawed and should be replaced with a token-based system.
• Failure to pay for a service does not necessarily invalidate a contract, and customers may still be liable for payment.
• Some countries have laws or regulations that protect consumers from unfair cancellation practices, but these laws are not always effective.
• Third-party services can help customers cancel subscriptions, but these services are not always reliable or available.
• Credit card companies can issue chargebacks against merchants, but this process is not always straightforward or available for debit card holders.