Industry groups such as Disney and Netflix oppose the obligatory one-click subscription cancellation `` Click to Cancel '', claiming that it costs a lot of money and infringes on freedom of speech
In response to the problem of complicated cancellation procedures for subscription services, the US Federal Trade Commission (FTC) is considering making it mandatory for customers to cancel the service with one click, including Disney and Netflix. companies have objected. Industry groups have expressed concern that compliance with the requirements could not only cost millions of dollars (hundreds of millions of yen) annually, but could also infringe on free speech.
Disney, Netflix, and more are fighting FTC's 'click to cancel' proposal | Hacker News
In March 2023, the FTC will make ``Click to Cancel'' obligatory so that you can easily cancel the service with one click, based on the claim that ``Cancelling a subscription service should be as easy as applying.'' Suggested rules and provisions.
The FTC is aiming to make ``Click to Cancel'' obligatory to cancel the subscription with a single click as ``Cancellation should be as easy as applying'', penalties for companies that complicate cancellation-GIGAZINE
Consumers who have been frustrated by the complexity of canceling subscriptions have welcomed the mandatory “click to cancel”. On the other hand, the industry group National Cable Television Association (NCTA), whose members include Disney, Paramount, and Warner Bros. Discovery, said in a comment submitted to the FTC, ``This regulation is too vague, and marketers are It would result in excessive disclosure and confusion among consumers.' Furthermore, NCTA claims that 'this regulation infringes even the freedom of speech of companies.'
The NCTA also said, ``This regulation violates the First Amendment to the United States Constitution and significantly restricts, and in some cases even prohibits, companies from communicating with their customers.'' I'm here.
Some subscription services require that you indicate your intent to cancel by completing an online form and calling the designated number. Hacker News, a social news site, has received a comment criticizing , ``For now, it is legal to include the procedure to make a phone call, but it is a very malicious procedure.''
Therefore, when 'Click to Cancel' becomes obligatory, if you apply online, you will no longer need to take steps to cancel the service over the phone. In addition, companies are obliged to save call records with customers, but American radio station
In addition, the video game industry group Entertainment Software Association , in collaboration with Netflix and other Motion Picture Associations and the Digital Media Association , said, ``Many customers seem to have a positive view of subscription services.'' I'm here. ``If we simplify the cancellation process, member companies will not be able to offer alternative plans or discounts to users.''
Regarding the factors behind some industry groups' resistance to 'Click to Cancel', an overseas media Insider said, 'The cancellation rate of video subscription services is rising, and Click It is speculated that it is because consideration of the mandatory to canlel is progressing. Data analytics company Antenna reports that the average monthly churn rate for multiple video subscription services, including Netflix, Hulu, and Disney+, rose from 3.2% in 2019 to 5.8% in 2022.
In addition, the Japan Association of Advertisers (ANA) said, ``Consumers generally do not think that they can cancel with one click, so if it becomes possible to cancel with one click, there is a possibility that unintended cancellations will increase. There is,' he claims.
Industry groups say that increasing the difficulty of how to cancel a subscription is a ``user protection function that prevents customers from accidentally canceling it''-GIGAZINE
The FTC is said to consider the final rule of 'Click to Cancel' based on feedback from public comments.
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