New Enforcement Policy on Online Subscription Cancellations
In response to mounting concerns over deceptive subscription practices, the Federal Trade Commission (FTC) unveiled a robust enforcement policy under the auspices of the Restore Online Shoppers’ Confidence Act (ROSCA) (15 U.S.C. §§ 8401-8405). This landmark initiative seeks to empower consumers with straightforward avenues for terminating recurring charges from online merchants.
Under ROSCA, online sellers are legally obligated to furnish cancellation mechanisms that are commensurate in ease of use with the initial purchase process. The FTC’s new policy, announced in October 2021, underscores the imperative for businesses to refrain from imposing undue obstacles or delays on consumers seeking to cancel subscriptions. These mechanisms must be accessible through the same medium—be it a website, mobile application, or telephone—utilized by consumers to consent to the subscription initially.
For the average person seeking legal recourse, the following steps, grounded in statutory provisions, outline a pathway towards seeking redress:
- Identification of Deceptive Practices: If an individual encounters difficulties in canceling a subscription, they should first ascertain whether the cancellation process violates the provisions outlined in ROSCA (15 U.S.C. §§ 8401-8405). Key indicators of non-compliance include unreasonable delays, obscure cancellation methods, or failure to provide accessible cancellation mechanisms.
- Documentation and Evidence Gathering: The aggrieved party should gather evidence documenting their attempts to cancel the subscription, including screenshots, emails, or records of communication with the merchant. This documentation serves as crucial evidence in substantiating claims of deceptive practices.
- Consultation with Legal Counsel: Prior to initiating legal action, the individual should seek consultation with legal counsel well-versed in consumer protection laws, including ROSCA. Legal experts can offer guidance on the viability of the case, potential legal strategies, and avenues for seeking redress.
- Filing a Complaint with the FTC: In instances where the subscription cancellation process contravenes ROSCA provisions, the aggrieved consumer can file a formal complaint with the Federal Trade Commission (FTC). The FTC investigates complaints of deceptive practices and may take enforcement actions against non-compliant merchants.
- Consideration of Private Litigation: In addition to regulatory enforcement, individuals may explore the option of private litigation against the merchant. Class action lawsuits, as evidenced by previous cases against notable subscription service providers, offer a means for consumers to seek compensation for damages incurred due to deceptive practices.
By adhering to these steps, individuals can leverage the provisions of ROSCA to seek legal redress against merchants engaging in deceptive subscription practices. Through diligent documentation, legal counsel, and engagement with regulatory authorities, consumers can assert their rights and hold non-compliant merchants accountable under the law.
