Takano, Amodei, Magaziner Introduce Unsubscribe Act to Rein in Misleading Subscription Plans, Protect Consumers
WASHINGTON, D.C. — Today, U.S. Representatives Mark Takano (CA-39), Mark Amodei (NV-02), and Seth Magaziner (RI-02)introduced the bipartisan Unsubscribe Act, legislation to protect consumers from being trapped into paying monthly subscription fees without their clear and informed consent.
Last year, a federal court struck down the Federal Trade Commission’s (FTC) original “click-to-cancel” rule, which required companies to offer a simple, direct way for consumers to cancel recurring subscriptions, on a technicality. Since then, the agency has been gathering public input on how to restore this common-sense consumer protection.
The Unsubscribe Act would strengthen consumer protections and crack down on practices by big corporations that sign consumers up for recurring charges without their knowledge and make it unnecessarily difficult to cancel. The bill would do so by:
- Requiring a simple way to cancel subscriptions that is as easy as signing up;
- Requiring affirmative consent before charging customers after a free or reduced-cost trial;
- Require sellers to periodically notify customers of contract changes, charges, and how to cancel a subscription;
- Prohibiting companies from automatically signing consumers on to a contract.
“Too many working Rhode Islanders and Americans across the country have been tricked into paying monthly subscriptions they didn’t knowingly agree to, and that companies make nearly impossible to cancel,” said Rep. Magaziner. “The Unsubscribe Act puts an end to these shady corporate tactics and puts power back in the hands of consumers who work hard for their money.”
“During a time when everything is more expensive, corporations are cashing in subscription models that rely on a consumer forgetting to cancel a free trial,” said Rep. Takano. “Corporations haven’t put into place commonsense reforms like ending a subscription just as easily as signing up for one, so I’m proud to introduce this bipartisan legislation to put more money back in Americans’ pockets.”
“Subscription traps have become an accepted inconvenience for American consumers,” said Rep. Amodei. “Too many companies rely on deceptive business models that force people to jump through hoops just to cancel. We all live busy lives, and remembering to cancel after a free trial shouldn’t be another item on the to-do list. The Unsubscribe Act protects consumers by requiring companies to be transparent and notify customers, rather than quietly charging them, before an automatic payment goes through.”
Companion, bipartisan legislation has been introduced in the Senate by Senators Brian Schatz (D-HI) and John Kennedy (R-LA).
The Unsubscribe Act has been endorsed by: Consumer Federation of America, Consumer Action, Truth in Advertising, National Consumer League, Public Citizen
Full text of the Unsubscribe Act can be found here.