US Government Aims To Simplify Unsubscribing From Services
Ever notice how signing up for a subscription or service is super easy, but canceling it feels like a never-ending maze? You’re not alone! U.S. federal agencies are stepping in to make it simpler for people to click the “unsubscribe” button and ditch those unwanted memberships and recurring payments.
The White House wants to make this process less frustrating, whether it’s for a cable subscription, gym membership, or another service. “We’re looking to ease that frustration,” said Neera Tanden, President Joe Biden’s domestic policy advisor, while announcing new rules.
Companies often make canceling difficult on purpose, hoping that people will just give up and keep paying. Some people have shared their struggles with unsubscribing on Reddit. One person said, “I literally had to Google how to unsub from my Spotify sub, and it was as inconveniencing and tedious as possible.” Another person added, “After trying and trying, I just cave and give up with unsubscribing.”
Making it easier to unsubscribe from subscriptions and memberships
The government is launching a new initiative called “Time Is Money,” which includes new regulations and promises more help in areas like healthcare, fitness memberships, and media subscriptions.
Starting Monday (Aug. 12), the Federal Communications Commission (FCC) is looking into whether companies should be required to make canceling a subscription or service as easy as signing up for it.
Back in March 2023, the Federal Trade Commission (FTC) started working on a “click to cancel” rule, which would make companies allow customers to end subscriptions just as easily as they started them.
Also on Monday, the heads of the Labor and Health and Human Services departments are asking health insurance companies to make it easier for people to deal with their health coverage. They’re also planning to find more ways to improve how consumers interact with the healthcare system, according to a White House summary.
The government has already been working on several projects to improve the consumer experience.
In October, the FTC proposed a rule to ban hidden fees that sneak into costs for things like concert tickets, hotel rooms, and utility bills.
In April, the Transportation Department finalized rules that require airlines to automatically give cash refunds for things like delayed flights and be more transparent about fees for baggage or reservation changes.
And in May, a federal judge temporarily blocked a rule that would have capped late credit card fees at $8 a month. This came after the U.S. Chamber of Commerce and the banking industry sued the Consumer Financial Protection Bureau.
