Struggling to Unsubscribe? A Simplified Solution May Be on the Horizon

The proposed requirements would make it as easy to cancel a subscription or service as it was to sign up for one.

WASHINGTON — A coalition of U.S. federal agencies is taking significant steps to simplify the process for Americans to unsubscribe from unwanted memberships and recurring payment services. This initiative aligns with broader consumer protection measures.

Titled “Time Is Money,” the new government initiative includes a series of regulations targeting a variety of industries, from healthcare and fitness memberships to media subscriptions.

“The administration is cracking down on all the ways that companies, through paperwork, hold times, and general aggravation, waste people’s money and time,” stated Neera Tanden, White House domestic policy adviser, in a briefing on Friday.

Tanden emphasized that companies often employ tactics to delay services or make cancellation difficult, extending their hold on consumer money. Such practices have significant financial impacts on consumers.

Among the immediate measures is a Federal Communications Commission (FCC) inquiry into requiring communications companies to simplify the process of canceling subscriptions.

In March 2023, the Federal Trade Commission (FTC) initiated rulemaking for a “click to cancel” approach, mandating that companies allow customers to terminate subscriptions as easily as they signed up.

On Monday, the departments of Labor and Health and Human Services urged health insurance companies and group health plans to improve customer interactions with their health coverage. Further improvements in consumer interactions with the healthcare system will be identified in the coming months, per a White House summary.

The government has already launched several initiatives to enhance the consumer experience.

In October, the FTC proposed a rule to ban hidden and bogus junk fees that often obscure the total cost of concert tickets, hotel rooms, and utility bills.

In April, the Transportation Department finalized rules requiring airlines to issue automatic cash refunds for delayed flights and to clearly disclose fees for baggage or reservation cancellations.

The department has also acted against companies accused of misleading customers.

In June, the Justice Department, following an FTC referral, filed a lawsuit against software maker Adobe and two of its executives. The suit alleges that Adobe misled consumers into its “annual paid monthly” subscription without adequately disclosing cancellation fees, which could cost hundreds of dollars within the first year.

In response, Adobe’s general counsel Dana Rao stated in an email that the company disagrees with the lawsuit’s characterization and plans to contest the FTC’s claims in court. Rao argued that early termination fees have minimal revenue impact but are crucial for offering customer plan options that balance cost and commitment.

Some business advocates oppose the government’s actions. Sean Heather, senior vice president of international regulatory affairs and antitrust at the U.S. Chamber of Commerce, criticized the initiative as an attempt to micromanage business pricing structures, potentially undermining consumer options at various price points.