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Forgot to stop that subscription, did you? New regulations may make it simpler for customers to discontinue.

Didn’t have enough time to stop that streaming service before you were charged again? On Thursday, the Federal Trade Commission unveiled new ideas that might force companies and sellers to make it simpler to cancel subscriptions, memberships, and other services.

According to a news release from the FTC on Thursday, the “click to cancel” component of the commission would compel “sellers to make it as easy for customers to cancel their membership as it was to sign up.” The idea would affect a variety of industries, including “newspapers, gym memberships, and cosmetics.”

FTC Commissioner Lina M. Khan noted in the press release that “certain businesses too frequently deceive consumers into paying for services they no longer want or didn’t sign up for in the first place.”

Officials anticipate that the change will “save consumers time and money, and businesses that continued to utilise subscription tactics and traps would be liable to heavy penalties,” she continued.

What you should know is as follows.

What modifications are being considered for subscriptions and other services?

The FTC is recommending a number of reforms, such as:

Companies, shops, and other sellers would need to make it as simple as possible to join up for the services and to cancel a subscription or other transaction. The FTC stated on Thursday that if a client subscribed to a subscription online, they must also be able to cancel it there, “in the same number of steps.”
When a consumer wants to cancel their subscription or other enrolment, vendors would be permitted to present further offers under the proposal. Nevertheless, the seller must first determine whether the buyer wants to hear the possibilities.
The idea would require businesses or other sellers to notify customers enrolled in specific programmes on an annual basis before they are automatically renewed.

Businesses would also have to disclose terms under the proposed regulations, such as the conclusion of a trial period, the frequency of certain fees, and more. Some sources state that organisations or other parties who disobey the law risk being fined and taxed tens of thousands of dollars per day.

Why are these modifications being proposed by officials?

According to the agency, its measures “would go a long way to save consumers from what seems like never-ending attempts to terminate undesired subscription payment plans.” Customers might be asked to cancel in person or made to wait on hold to talk with customer service as examples of this.

According to a tweet from President Joe Biden on Thursday, “Too frequently, firms make it tough to unsubscribe from a service, wasting Individuals’ time and money on something they may not want or need,” Biden said he supports the proposal.

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