The Federal Trade Commission (FTC) recently proposed new regulations that, if passed, would make it easier for American citizens to cancel free trials and subscriptions they no longer need or want.
The new regulation, unveiled last Thursday, will be sweeping across the entire U.S. financial system, covering both digital and physical subscriptions. A wide range of services will be subject to this directive, including gym memberships, online streaming and shopping experiences, cable TV service packages, and traditional print publications.
The FTC’s ruling could have significant implications for some of the largest retailers and online platforms across America, as well as a wide range of smaller companies. It will affect millions of consumers in nearly every aspect of lives , as subscription-based products and services have now become embedded in many industries, including music streaming, video games, pet care and more.
See also: How to cancel your subscriptions on iPhone and Android?
In Wednesday's conference call, FTC Chairwoman Lina Khan expressed her disapproval of the fact that Americans often have to go through various hurdles simply to cancel their subscriptions.
Essentially, the new rule aims to protect consumers from businesses that use deceptive or onerous tactics that make it difficult for them to cancel a subscription they initially signed up for online. This includes requiring customers to mail in forms and paperwork before canceling their subscription. Companies could face hefty daily fines, as well as consumer refunds that the FTC can seek , if they violate this pre-established rule . Currently, while the FTC is able to enforce such regulations in certain areas, such as telemarketing, where cancellation rules are already in place , there are no similar restrictions across all industries, as this one would provide.
Source of information: edition.cnn.com
