FTC steps in as subscription economy balloons

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Over the summer, I settled in to watch the Boston Red Sox play the San Diego Padres – only to realize the game wasn’t airing on its normal network, NESN, which I subscribe to. It was on Apple TV. I could watch if I signed up for a free, seven-day trial. Easy enough.

Of course, I forgot to cancel before the trial period ended. Because I had already handed over my credit card information, I had to swallow the charge – even though I hadn’t used Apple TV since that one game.

You could forgive my absentmindedness. When I take stock of my subscriptions, I have them for Spotify, cloud data, Photoshop and Planet Fitness – to name just a few.

So when I learned last week that the Federal Trade Commission had implemented a new “click to cancel” rule, I saw it as a step in the right direction for subscription-addled consumers like myself. Set to go into effect in April of next year, it aims to make canceling a subscription as easy as setting one up.

But for better or worse, a subscription-based economy is here to stay, David Arditi at the University of Texas at Arlington explains. Once the purview of magazines and newspapers, subscriptions are now required to extend the battery life of electric vehicles, play video games – and even use an app that manages subscriptions.

“I do wonder if this rule is merely a Band-Aid on a broken leg,” Arditi writes, “particularly since more and more companies are starting to see value in making sure customers get locked into regular payments – and, in some cases, never fully own what they buy.”

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Nick Lehr

Arts + Culture Editor

A new rule set to go into effect in 2025 will make canceling subscriptions much easier. violetkaipa/iStock via Getty Images Plus

US government tries to rein in an out-of-control subscription economy

David Arditi, University of Texas at Arlington

It’s never been easier to sign up for subscriptions – and they’ve never been harder to manage.

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