Sneaky Subscriptions
The FTC is fighting against tricky subscription cancellation practices
Sneaky subscription practices have become a major concern for consumers, with many companies making it difficult for users to cancel their subscriptions. The Restore Online Shoppers' Confidence Act, or ROSCA, was enacted to protect consumers from such practices, requiring companies to make cancellation at least as easy as the method used to sign up. As attorney Goodrich notes, the Federal Trade Commission has taken action against companies like Uber and Chegg for violating this rule, with penalties imposed on those who fail to comply. The FTC's efforts to crack down on fraudulent practices, as seen in the recent US Cracks Down On Fraud initiative, demonstrate the agency's commitment to protecting consumers.
Companies that engage in sneaky subscription practices can face significant penalties, with the FTC imposing fines and other sanctions on violators. For example, in 2020, the FTC fined a company $1.5 million for violating ROSCA, highlighting the serious consequences of non-compliance. The law also gives state attorneys general the authority to enforce the rule within their states, providing an additional layer of protection for consumers. As the Fed Issues Enforcement Action against companies that engage in deceptive practices, it is clear that regulators are taking a tough stance on sneaky subscription practices.
The issue of sneaky subscriptions is not limited to a few isolated cases, but rather is a widespread problem that affects many consumers. According to a recent report, millions of consumers are affected by sneaky subscription practices each year, resulting in significant financial losses. The Fuel Retailers Face Price Fixing Suit highlights the need for greater transparency and accountability in the marketplace. As consumers become more aware of the issue, they are turning to resources like click-to-cancel is dead, but the FTC is still fighting subscription scams to learn more about their rights and how to protect themselves from sneaky subscription practices.
As I take a closer look at my monthly expenses, I'm appalled by the number of sneaky subscriptions I've unknowingly signed up for. My thesis is that these automatic payments are a scam, taking advantage of consumers who don't carefully review their bills. If nothing changes, the big corporations behind these subscriptions will continue to win, raking in millions of dollars from unsuspecting customers like me. They'll keep benefiting from our lack of awareness and inaction, while we're left footing the bill for services we don't even use. It's time for us to take control and demand transparency.
Cross-reference independently — do not take our word for it.
Disclosure: NewsAnarchist uses AI-assisted reporting with web search. Always verify primary sources linked above.
This article is produced by NewsAnarchist's AI reporting system, not a human staff reporter. It's built from the primary source cited above (a declassified document, a FOIA release, an inspector general or congressional report, or a named whistleblower disclosure reported by outlets we cite) and reports what that source states, attributed to it — it reports what the document or disclosure states and does not speculate about what remains classified beyond that. Part of our Government Secrets hub. Found an error? Tell us.