48 Subscription Scams That Got Exposed By Furious Customers

The average American spends almost a thousand dollars each year on subscriptions. With so many to keep track of, it can be easy to get overwhelmed by the costs, but stopping them is a whole other challenge. Some companies create entire obstacle courses before you can finally click cancel. The New York Times, for example, is notorious for making you talk to a customer representative on the phone or endure a tedious online chat, as you can’t end your subscription directly through their website.

In some cases, businesses make their cancellation processes so confusing they end up facing legal action. Last year, Amazon was sued by the US government over how hard it is to cancel Prime and claims of ‘nonconsensual enrollment.’

The Federal Trade Commission (FTC) accused Amazon of repeatedly pushing customers to sign up for Prime during their shopping journey, often using big, eye-catching buttons for enrollment and tiny, easy-to-miss links to decline. The suit claims these Prime offers were often not clearly labeled, leading consumers to think they were choosing free shipping or a trial, not realizing they were agreeing to a paid subscription.

With such deceptive marketing techniques, it’s no wonder people get so frustrated. Fortunately, the FTC is stepping in to help. In 2023, they proposed a ‘click to cancel rule,’ which would force businesses to make unsubscribing as easy as signing up.

“I’m sure this is an experience that all of you can relate to, where you tried to cancel a subscription and the company has made you jump through an endless number of hoops,” commented FTC Chair Lina Khan. “Companies should not be able to manipulate consumers into paying for subscriptions that they don’t want.”

The ‘click to cancel rule’ is still in the works, but if it goes through, it will put an end to in-person visits, handwritten letters, and hours spent on hold on the phone. Companies would also have to clearly inform consumers they’re signing up for a paid service, get users’ explicit consent, and remind them before services automatically renew.

Making it easier to end subscriptions could actually be beneficial for businesses in the long run. Some providers who are already transparent about their policies say honesty has helped them retain more customers.

“We had fewer cancellation requests, more saves, and less customer service time,” says Alex Brown, CEO of sustainable cleaning supplies subscription firm Truly Free. “That’s given us the latitude to take a little bit of the pressure off of them, and I think it’s caused more of them to come back in the future too.”

While some companies have made the shift to be more honest and straightforward, others still use sneaky tactics to keep customers locked in. Personal finance expert Clark Howard offers some tips on handling your subscriptions.

“It requires a mental reset,” Howard says. He suggests reviewing your checking and credit card statements every three months to spot recurring charges you might have forgotten about. If there’s something you no longer use, cancel it.

More importantly, Howard urges consumers to research new services and their cancellation policies before enrolling. Look beyond the service’s website for its cancellation policy and see if there are any complaints about it. It might take some time, but it will save a lot of hassle in the future. “You have to look at how you get divorced before you get married,” he says.

The FTC also recommends watching for prechecked boxes when making a purchase online, as they may sign you up for products or services you don’t want unless you uncheck them. If you cancel a subscription but are still being charged, dispute it with your credit card company and file a complaint on the FTC’s website.

So, the next time you consider starting a new subscription, remember to do your homework and stay vigilant about hidden charges. Hopefully, in the future, better consumer protection policies like the ‘click to cancel rule’ will make managing subscriptions easier and more transparent for everyone.

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