How to cancel your subscription
Cancelling a streaming subscription can be painful. Here’s how to find the right place to cut the cord:
The problem has been resolved
The federal court of appeals has blocked a new rule that forces businesses to make it easier to cancel unnecessary subscriptions and memberships.
The U.S. Court of Appeals for the Eighth Circuit broke the Federal Trade Commission rules just days before it was due to take effect, saying that a “fatal” procedural error had been made in the rulemaking process.
The FTC could not be reached for comment.
The “Click to Cancel” rule announced in October required that companies create a company that cancel services in the same way they sign up, saying it was “at least easy.” The companies would also have had to agree to a free exam that would be converted to subscriptions, auto-renewal and paid memberships.
The rules that were part of the Biden administration’s “time is money” initiative were initiatives to crack down on “junk fees” and other consumer headaches, and two Republican commissioners at the FTC voted against it, passing 3-2.
“It’s so easy to sign up for a subscription, and it’s miraculous. That’s why I know that the difficulty of canceling is not an accident. It’s an option. And it’s a choice that’s causing real harm to consumers.”
Consumer groups have been praised as a much-needed protection for consumers who have paid for services they no longer want. In 2024, the FTC said it received an average of 70 complaints per day.
But click to cancel,” he quickly faced political and legal challenges.
Republican and new FCC president Andrew Ferguson voted against “Click To Cancel” as FTC commissioner.
The rule was also opposed by business groups like the U.S. Chamber of Commerce, who accused the FTC of over-statutory authorities and unfairly saddled businesses with high costs and unnecessary regulatory hurdles.
“The court ruled that federal agencies must follow the rulemaking process, including conducting a thorough analysis of how much the proposed regulations cost consumers and businesses,” the Chamber of Commerce said in a statement. “This decision provides safeguards against rushed rulemaking and strengthens the importance of agencies addressing public concerns.”
Erin Witte, director of Consumer Protection for the American Consumer Federation, said the court’s decision was “another handout to businesses that have done everything they can to hurt consumers and kill the rules.”
“Click to Cancel Rule was a candid, common sense approach that empowered Americans to break up with subscriptions without jumping over the outrageous hoops,” Witte said. “Subscription traps allow large businesses to make profits at the expense of Americans who want their freedom to choose where they spend their money.”
Teresa Murray, consumer watchdog director for the Public Interest Research Group, pointed to the long delayed silver lining caused by legal proceedings. Forecasting the rules has been enabled, and she said that in some states, many businesses changed their cancellation policies a few months ago, if they had similar rules.
“I don’t think it’s going to be a seldom going back to the old ways that companies have already made changes to their websites and interfaces, at least in the short term,” Murray said. “Many businesses think they’ve noticed that compliance standards are pretty low. They make it easy for customers to cancel subscriptions and repetitive purchases, and become transparent about costs, cancellation deadlines and other basic details. That sounds like a good business.”
(This story has been updated to add new information.)
