Have you ever signed up for a subscription service online but been forced to cancel by picking up the phone and talking with a human? It’s incredibly common for companies to make it a breeze to sign up for a service only to then have it be a total chore to cancel. President Joe Biden wants to change all that in his last few months in the White House, and it would be a huge win for consumers if he can pull it off.
The White House put out a press release on Monday about what it’s dubbed the “Time is Money” effort to, “crack down on all the ways that corporations—through excessive paperwork, hold times, and general aggravation—add unnecessary headaches and hassles to people’s days and degrade their quality of life.” And if there’s any initiative put out by this White House that would have nearly universal support among the American people, it would probably be this one.
The White House explains that businesses often trick consumers into paying for subscriptions they no longer want or didn’t sign up for, giving the examples of gym memberships, newspaper subscriptions, and cosmetics. But acknowledges that consumers “shouldn’t have to navigate a maze just to cancel unwanted subscriptions and recurring payments.”
“The Federal Trade Commission (FTC) has proposed a rule that, if finalized as proposed, would require companies to make it as easy to cancel a subscription or service as it was to sign up for one,” the White House said in the release. “The agency is currently reviewing public comments about its proposal. And today, the Federal Communications Commission (FCC) is initiating an inquiry into whether to extend similar requirements to companies in the communications industry.”
Recurring payments are a big business, obviously, and many large industries are probably going to fight this tooth and nail. But the popular support for this kind of change will likely be enormous.
You may recall Gizmodo wrote about 23andMe’s shady subscription cancellation policies back in March, and a host of other companies have similar consumer complaints filed with the FTC. The Department of Justice is currently suing Adobe for precisely those kinds of tricks that keep people stuck with subscriptions they don’t want. And you’ll find countless other examples over the past decade.
And it’s not just canceling subscriptions. The White House is also going after fake online reviews, “doom loop” menu options on the phone, and companies that don’t let you submit health claims online. They’re even trying to make sure airlines are forced to give customers cash refunds on canceled flights rather than complicated rebooking options.
Here’s to you, President Brandon. We don’t know if you can pull it off, but we’re optimistic that you can get the attack dogs at the FTC to make it happen. And if it doesn’t get done in time before your last day on January 20, 2025, here’s hoping a President Kamala Harris administration can continue the work. She is, after all, making a very strong showing against Donald Trump right now.
FTCJoe BidensubscriptionsWhite House
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Source: Gizmodo