The government is stepping in to make sure that you can cancel your streaming subscriptions without having to tear your hair out jumping through hoops. Streaming services provide a great deal of entertainment for consumers with seemingly endless amounts of content. However, as easy as it is to sign up for these platforms, cutting a subscription can prove to be far more difficult. Customers may be more inclined than ever to opt out of streaming, considering these platforms continue raising their costs, including Netflix, which is reportedly on the verge of another price hike. Actually ending subscriptions with these platforms can consist of several hurdles to jump through, leaving the consumer frustrated and confused.
The inability to easily and effectively cancel subscriptions extends beyond the scope of the entertainment industry. This type of consumer roadblock can be felt in the areas of fitness memberships and shopping subscriptions as well. According to Deadline, the Federal Trade Commission has announced a final “click-to-cancel” rule. In an official statement, Commission Chair Lina M. Khan remarked on the historic decision set to impact companies across the nation.
“Too often, businesses make people jump through endless hoops just to cancel a subscription. The
FTC
’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.”
The announcement will have far-reaching ramifications for companies that make it nearly impossible to cancel subscriptions in the same manner they were created. The rule is set to go into effect six months from today, containing over 200 pages of rhetoric meant to establish newfound protection for consumers. Alterations to these cancelation policies came after a thorough examination of the Negative Option Rule.
Streamers Have Been Unfair to Consumers
Customer exasperation has reached a fever pitch in recent years, leading to the FCC inquiry into unfair practices. The ease to cancel a service is not replicated in the cancelation process, which led to a growing number of complaints. In the same Deadline article, it was noted that the FTC received “nearly 70 consumer complaints per day on average, up from 42 per day in 2021.” While the number of subscribers for most of the entertainment streaming platforms appears to be growing, it is also evident that a large number are attempting to opt out but are finding it quite difficult.
“If you signed up online, you should be able to cancel online,” noting they often face hurdles finding a cancelation mechanism, and then must call and spend significant time on the telephone to cancel their subscriptions.”
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With Disney+ releasing hits like Agatha All Along or Netflix’s smash ratings success with the Menendez Brothers content, these companies are not going anywhere anytime soon. However, they will have to make it far easier for customers to unclick and unsubscribe if they aren’t satisfied. Tactics employed by streamers to hang on to those who cannot be bothered with the hassle of canceling have perhaps finally met their match in these new regulations, but only time will tell whether this step in the right direction leads to a more transparent future for streaming in general.
Starring Kathryn Hahn as the titular Marvel witch, Agatha All Along reveals how Scarlet Witch’s enemy broke Wanda Maximoff’s binding spell at the end of WandaVision. Aubrey Plaza, Joe Locke, Emma Caulfield, and Ali Ahn join Hahn in the MCU Phase 5 spinoff series, released on Disney+.
- Release Date
- September 18, 2024
- Seasons
- 1