Publishers, advertisers, and videogame makers are pushing back the Federal Trade Commission’s proposed “click-to-cancel” mandate.
The agency requires companies to offer consumers an easy way to cancel subscriptions and memberships.
The FTC’s rule aims to eliminate cumbersome cancellation processes and introduce a more streamlined approach.
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The proposal responds to complaints from consumers who feel trapped by complicated cancellation mechanisms, worsened by the proliferation of recurring-payment memberships.
Consumers have expressed frustration with delays and wasted time associated with canceling subscriptions.
However, trade groups representing publishers and advertisers argue that the proposed changes could create new challenges for consumers and companies.
They assert the current system works effectively, and automatic renewals for newspaper and magazine subscriptions do not generate pervasive complaints or dissatisfied consumers.
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The Association of National Advertisers warns that requiring a single click or action for cancellation could result in accidental cancellations.
The group says it would inconvenience consumers who rely on essential deliveries or have to re-register for unintended cancellations.
Trade groups suggest the multilayered cancellation process, involving password logins and confirmation, protects both consumers and sellers.
In video gaming, cancellation options are typically available in users’ account settings, with information about the in-game benefits lost upon cancellation.
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Companies often leverage the cancellation process to offer better deals or personalized incentives to retain customers.
This approach allows for improved understanding of customer motivations and preferences.
Trade groups propose that sellers should be able to offer alternatives without requiring additional actions from the customer as long as a direct path to cancellation is available.
The FTC is currently reviewing the comments on its proposal and has not yet disclosed its next steps.
