From long hold times on the phone because there’s no way to cancel online, to high-pressure pitches from customer service reps, or having to click through a labyrinth of discount offers and “are you sure?” messages, each year thousands of people complain to the Federal Trade Commission that they can’t get out of a recurring subscription service they want to cancel — or, even worse, one they didn’t realize they’d signed up for.
“Subscription models have proliferated in recent years, especially during the pandemic. In the age of lockdowns, work-from-home and goods shortages, ordering a product or service online via auto-renewal was an easy and painless way for consumers to get the items they need,” says David Nahmias, an attorney with the Center for Consumer Law and Economic Justice at UC Berkeley School of Law. “Businesses learned quickly that they could use deceptive and manipulative techniques to keep consumers hooked. Our research found examples of such techniques across a wide range of industries, from the well-known like cable and satellite radio, to the more niche like businesses that send new athletic clothes or kids toys every month. One study we cited found that consumers spend an average of $133 a month on subscriptions they no longer want.”