Canceling Streaming Subscriptions Might Become More Difficult

In a recent development, it seems that canceling streaming subscriptions may not be as easy as we had hoped. A federal appeals court has struck down the FTC’s “click to cancel” rule, which would have required companies to provide simple cancellation mechanisms for users to immediately stop recurring charges and get their consent for auto-renewals and free trials turning into paid enrollments.

Under this rule, businesses would not be allowed to make canceling harder than signing up, aiming to eliminate those frustrating processes that keep users stuck in unwanted subscriptions. The FTC was planning to enforce this rule starting from July 14, but now it seems that won’t be the case.

This rule was part of a larger effort to crack down on deceptive subscription practices. In 2023, Amazon was sued by the FTC for allegedly tricking customers into signing up for Prime and making it difficult for them to cancel. The lawsuit described a complicated cancellation process that required users to navigate multiple pages and options, making it a challenge to cancel.

It’s worth noting that the FTC declined to comment on this recent development. This rule was initially supposed to go into effect in May but was delayed as the agency under former chair Lina Khan faced criticism for its strict approach to consumer protection. It seems like we will have to wait and see how this decision will impact our ability to easily cancel streaming subscriptions in the future.