If you've ever checked a bank statement and realized you've been paying for a monthly subscription for four months that you meant to cancel after a free trial, good news -- the FTC is looking out for you.
On Thursday, the Federal Trade Commission proposed making a rule change that would make it easier to cancel free trials and subscriptions customers no longer want.
“The idea here is pretty simple. Companies should not be able to manipulate consumers into paying for subscriptions that they don’t want," FTC Chair Lina Khan said in a conference call Wednesday, according to CNN.
Under the new proposal companies would be barred from trying to retain customers through nefarious or burdensome tactics that intended to keep them from quitting a subscription.
It would also require companies to first ask consumers who are trying to cancel a free subscription whether they would be open to retention offers before trying to entice them.
Products subject to the new rule would include gym memberships, digital streaming and e-commerce, cable TV service, traditional print media and others.
The regulatory body voted 3-1 to introduce the proposal and said that the public will have an opportunity to comment on the proposal.
Last year, the FTC announced that it reached a $100 million settlement with internet phone service provider Vonage over its cancellation policies.
The agency has also been investigation Amazon since 2021 over the subscription and cancellation policies for Amazon prime.
