Improving Customer Experience: Easing Subscription Cancellations
As many consumers know from first-hand experience, it’s often much easier to sign up for a subscription or service than to cancel it. Neera Tanden, President Biden’s domestic policy adviser, announced new rules aimed at easing this frustration, whether it’s related to cable TV subscriptions, gym memberships, or other services. Companies often make it difficult for people to terminate subscriptions or services, counting on them to give up due to the time-consuming and frustrating process.
Challenges of Cancelling Services
Whether by making customers wait or asking them to navigate through time-consuming hoops, companies intentionally delay or complicate the cancellation process to keep customers subscribed and continue profiting. The Federal Trade Commission is set to introduce a proposal called “click-to-cancel,” requiring companies to make the cancellation process as simple as signing up for a service.
Focus on Consumer Pain Points
Government agencies are targeting common consumer complaints, including issues with airlines. The Department of Transportation has implemented new rules requiring airlines to provide automatic refunds for canceled or delayed flights. Additionally, efforts are being made to crack down on junk fees, such as extra charges for parents to sit next to their children while flying. The aim is to provide automatic, timely refunds in full to the original payment method, putting an end to airline practices that have caused consumer frustration.
Challenges in Eliminating “Junk Fees”
While the Biden administration continues to work on eliminating so-called “junk fees,” challenges exist, including industry opposition and legal disputes. A recent federal court ruling temporarily blocked credit card late payment fee cap rules, highlighting the pushback faced by regulatory efforts. Despite these challenges, the administration remains committed to improving consumer rights and experiences in various industries.
