FTC 'Click-To-Cancel' Rule Makes It Easy To End Subscriptions: What It Means For Netflix, Planet Fitness And More
Portfolio Pulse from Erica Kollmann
The FTC has finalized the 'click-to-cancel' rule to simplify subscription cancellations, impacting companies like Netflix, Amazon, and Planet Fitness. The rule aims to protect consumers from difficult cancellation processes and will take effect in six months.
October 17, 2024 | 3:53 pm
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NEGATIVE IMPACT
Amazon's Prime service may be affected by the FTC's 'click-to-cancel' rule, which targets difficult cancellation processes.
Amazon has been previously scrutinized by the FTC for its Prime subscription practices. The new rule will require Amazon to simplify its cancellation process, potentially affecting subscription numbers.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Best Buy may need to revise its subscription practices due to the FTC's 'click-to-cancel' rule.
Best Buy's subscription services will need to ensure compliance with the FTC's new rule, potentially leading to easier cancellations and affecting subscription retention.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50
NEGATIVE IMPACT
Netflix may face changes in its subscription model due to the FTC's new 'click-to-cancel' rule, which requires easy cancellation processes.
The FTC's rule directly targets companies with subscription models like Netflix, requiring them to simplify cancellation processes. This could lead to a decrease in subscription retention if cancellations become easier.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The New York Times may need to adjust its subscription practices due to the FTC's 'click-to-cancel' rule.
As a traditional subscription service, The New York Times will need to ensure its cancellation process is as easy as its sign-up process, potentially affecting subscription retention.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Planet Fitness may need to revise its membership cancellation process due to the FTC's 'click-to-cancel' rule.
Planet Fitness is known for difficult cancellation processes, which are directly targeted by the FTC's new rule. This could lead to easier cancellations and potentially lower membership retention.
CONFIDENCE 95
IMPORTANCE 75
RELEVANCE 90
NEGATIVE IMPACT
Walmart's subscription services may be impacted by the FTC's 'click-to-cancel' rule, requiring easier cancellation processes.
Walmart's subscription services will need to comply with the new FTC rule, which could lead to easier cancellations and affect subscription numbers.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50