The FTC unveiled its “click to cancel” rule, making it easier to shed unwanted subscriptions.
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Conway Gittens: Earnings season powered the Dow and the S&P 500 to record highs on Thursday. Economic data also helped. Consumers had more cash to spend in September thanks to falling gasoline prices, which led to stronger-than-expected retail sales.
The week will come to a close Friday with numbers from American Express, Procter and Gamble, and fresh residential construction figures.
In other news – If you’ve ever tried to cancel a subscription to anything and got the run around – the Federal Trade Commission feels your pain.
The FTC has finalized its “click-to-cancel” rule to end that frustration. FTC Chair Lina Khan says, “Too often, businesses make people jump through endless hoops just to cancel a subscription. Nobody should be stuck paying for a service they no longer want.”
Under the new rules, companies will have to make it just as easy to cancel a subscription as it is to sign up. This includes gym memberships, streaming services, pay-TV, and automatic billing on e-commerce sites. Companies must provide an online cancel button that does not require you to talk to a live person or interact with the company in any other way. If you enrolled at a physical location, the company must provide an easy way to cancel either online or by phone.
Companies will have 180 days to comply with the new rules, which also include the free-trial switcheroo. You know how it goes: the company offers a free trial but you have to supply your credit card number first, then once the trial period ends, the company starts billing you automatically without any notice. Under the FTC’s new rules – that can’t happen.
According to one research firm, Americans, on average, have 4.5 subscription plans, carrying a yearly price tag of $924.
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