Senate bill would make it easier to cancel a subscription online after a free trial

A bipartisan group of senators introduced the bill on Wednesday

A bipartisan group of lawmakers introduced a bill on Wednesday that will make it easier For people to cancel the online subscription after the free trial period is over. Sense. Brian Schatz (D-HI), John Thune (R-SD), Raphael Warnock (D-GA), and John Kennedy (R-LA) say unsubscribing requires companies to be more transparent about their membership. will need to be.

“Subscription-based business models are exploding, and this is largely due to the deceptive practices that some companies use to lure and entice customers,” Schatz said in a statement. “When people sign up for a free trial, they don’t have to jump through hoops to cancel their subscription before they’re charged.”

The bill is known as “negative option billing,” where a customer signs up for a free trial and the company automatically switches to a full-price subscription when the trial ends. Customers are often not notified that the free trial period is ending until the company charges them. Other companies allow potential customers to sign up for service online, but then require them to call the customer service phone line to cancel. And as someone who wants to support my fellow news sites and newsletters, it’s a good idea to not simply let me sign up online for $1.99 but force me to call a customer service line. When you can charge me for one year subscription in advance. Didn’t want to (maybe I did, but I’d rather opt in).

The unsubscribe act would require sellers to allow customers to unsubscribe in the same way they signed up, requiring sellers to provide notice when a free or reduced-price trial is underway. expires, and provides customers with a clear understanding of the terms. of contract. And sellers won’t be able to automatically transfer a free trial customer to a contract longer than one month.

California has a The law is in force since 2018 For which companies have to allow customers to cancel online subscriptions.

According to a news release, a collaborative law to abolish membership is being introduced in the House.

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