Are There Any Businesses You’re Looking Forward to Seeing Implement the FTC’s 'Click-to-Cancel' Rule for Subscriptions?

The Federal Trade Commission (FTC) recently introduced a significant new rule known as the "Click-to-Cancel" requirement, aimed at making it easier for consumers to unsubscribe from services. Under this rule, businesses offering subscription services are required to provide a simple and straightforward way for customers to cancel their subscriptions. Gone are the days of cumbersome phone calls, confusing processes, or hoops to jump through. This is great news for consumers who’ve long been frustrated with the complexities of ending subscription services. But the real question is, which businesses are we most excited to see implement this new rule?

Here are some key industries where the rule could make a huge impact:

1. Streaming Services

We’ve all been there—signed up for a free trial of a streaming service, only to find it difficult to cancel once the trial ends. Popular platforms like Netflix, Hulu, and Disney+ often require users to navigate through several steps to cancel subscriptions. With the new "Click-to-Cancel" rule, it’ll be interesting to see how these entertainment giants simplify their processes. After all, these services thrive on recurring revenue from subscriptions, so balancing ease of cancellation with customer retention will be crucial for them.

2. Fitness Apps and Gyms

Fitness apps, such as Peloton and FitBit, as well as traditional gyms, often have notoriously tricky cancellation policies. Some gyms require you to visit in person to cancel a membership, while fitness apps might make you dig deep into their settings to find a way to unsubscribe. The FTC rule could bring some welcome changes here, making it easier for people to cut ties without being locked into lengthy contracts or confusing terms. I’m personally curious to see if gyms, in particular, adapt quickly or try to find loopholes.

3. Subscription Boxes

Companies like FabFitFun, Birchbox, and other subscription box services have built their business models around convenience and personalization, but sometimes their cancellation processes are anything but convenient. Currently, many of these services make it challenging to cancel, requiring customers to contact customer service or jump through multiple steps. Seeing how subscription box services streamline cancellations to comply with the new rule will be a major win for subscribers who might otherwise hesitate to sign up.

4. Telecom and Internet Providers

Anyone who’s ever tried to cancel a cable or internet subscription knows how hard it can be to get out of a contract. Companies like Comcast, Verizon, and AT&T often make customers jump through various hoops before they can successfully terminate their service. These businesses have long relied on lengthy contracts and difficult-to-navigate cancellation processes to lock in customers. Watching these companies implement the "Click-to-Cancel" rule will be eye-opening, as they’ve traditionally been slow to adapt consumer-friendly policies.

5. Online Learning Platforms

Platforms like MasterClass, Coursera, and LinkedIn Learning offer subscriptions to educational content, and while their services are incredibly valuable, canceling subscriptions can be a pain. Many users forget they’ve subscribed until they see a recurring charge. I’m looking forward to seeing how these platforms respond to the new rules, particularly if they streamline the cancellation process for their growing base of users.

6. Software as a Service (SaaS) Providers

From cloud storage to productivity tools, many businesses rely on SaaS subscriptions. Providers like Microsoft 365, Adobe Creative Cloud, and Dropbox often include cancellation processes that are not immediately obvious. In business settings, auto-renewals and hidden terms can cause unnecessary frustration. It’ll be intriguing to see how these tech giants and smaller SaaS companies simplify their subscription management to remain in line with the FTC’s regulations.

Final Thoughts

The FTC’s "Click-to-Cancel" rule is a game-changer, particularly for consumers who are tired of complicated, time-consuming cancellation processes. As businesses adapt to this new requirement, it will be fascinating to see which companies go above and beyond to make subscription management easier—and which ones try to do the bare minimum. 

Which businesses are you most eager to see implement this rule? Whether it’s your favorite streaming service or that gym membership you’ve been meaning to cancel, it’s safe to say we’ll all be keeping an eye on how this plays out across various industries.