The Biden administration just announced a handful of policies to make canceling subscriptions and memberships as easy as it is to sign up.
"It's pretty easy to sign up. You can go to a website for example and sign up but then if you want to cancel, you can't use the website," said Daniel McCarthy,, the rule would require companies to make signing up and canceling the same. Which for some companies, isn't the case right now.McCarthy said whether it's a gym membership or a streaming service, the reason some companies make canceling more difficult is to generate added revenue.
"Someone doesn't want the service anymore but because of all the loops they have to go through to cancel, the company ends up getting an extra subscription payment or two or six," said McCarthy., 99% of U.S. households pay for at least one streaming service. But Chad Ruback, an appellate attorney in Dallas, Texas said those customers shouldn't expect these rules to be rolled out anytime soon.
A company that sells you this streaming service, that sells your gym subscription, is likely going to challenge this in a court," said Ruback."Just because a rule has been promulgated by a federal agency doesn't mean that rule is going to stick," said Ruback. Along with streaming services and gym memberships, the rules would also apply to phone and internet companies and health insurance companies, allowing claims to be submitted online rather than only by mail.
Canceling Companies Service Rule Biden Administration Streaming Mccarthy
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