Disney, Netflix, and more are fighting FTC's 'click to cancel' proposal (businessinsider.com)

Article summary

The Federal Trade Commission (FTC) has proposed a 'click to cancel' rule to make it easier for consumers to cancel subscriptions. The proposal has been met with resistance from companies such as Disney and Netflix, who argue that the rule is too vague and would infringe on their freedom of speech. The rule would require companies to offer a simple mechanism for users to cancel subscriptions the same way they signed up. This comes at a time when the entertainment industry is relying heavily on streaming services and is struggling with high churn rates.

Main themes

• subscription services
• cancelation policies
• consumer protection
• regulation
• credit card security
• debt collection
• market balance

What commenters say

• Using a gift card to pay for a subscription does not necessarily avoid the commitment to pay for the service.
• Some argue that making cancellation as easy as signing up is a necessary protection for consumers, while others believe it could lead to unintended consequences.
• The use of virtual credit cards and services that offer single-use credit card numbers can help protect consumers from unwanted charges.
• Some commenters believe that debt collection agencies often violate the law and that consumers can make money by suing them, while others warn that ignoring debt collection can have serious consequences for one's credit score.
• The proposed rule may not be effective in preventing companies from making cancellation difficult, as they could still use interstitials or other methods to deter users from canceling.
• There is a need for a balance between protecting consumers and not imposing overly burdensome regulations on companies.
• Some argue that the government should not intervene too heavily in the market, while others believe that regulation is necessary to prevent companies from taking advantage of consumers.