The Federal Trade Commission (FTC) is in the process of making canceling streaming subscriptions as easy as setting them up. The so-called ‘click to cancel’ rule applies to far more than streaming services, with the proposal designed to make it easier to cancel just about any subscription or recurring payment.
The FTC first announced its proposals in March of 2023, with one of the main takeaways being that consumers shouldn’t have to go through more steps to cancel a subscription than it takes to set one up.
Following those earlier proposals, the Biden Administration today confirmed that the FTC is hard at work finalizing its ‘click to cancel” rule. At the same time, the Biden Administration announced a new and governmentwide ‘Time Is Money‘ initiative.
“Americans are tired of being played for suckers, and President Biden and Vice President Harris are committed to addressing the pain points they face in their everyday lives,” a newly-released fact sheet explains.
Along with the FTC, who is now reviewing public comments about its proposal, the Federal Communications Commission (FCC) is now beginning its own inquiry into whether similar requirements should apply to companies in the communications industry.
In addition to making it easier and quicker to cancel subscriptions, the Time Is Money initiative also wants to crack down on other time-wasting practices, including refund waiting times, customer service ‘doom loops,’ and paperwork in general.
It would seem that not everyone is happy with the decision, however. Following the Biden Administration’s announcement today, the U.S. Chamber of Commerce issued its own statement, suggesting regulations are not the answer.
“Businesses succeed by being responsive to customers and have a far better track record of customer service, streamlined paperwork, and prompt response times than the federal government. Imposing heavy-handed regulations that micromanage business practices and pricing is the wrong approach, inevitably raising costs for consumers,” the statement said.
This is not the first time the proposal has been criticized. Earlier this year, the NCTA trade group argued that any implementation of ‘click to cancel’ would result in a landscape that’s even more confusing for customers than it is today.
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