Shulou(Shulou.com)11/24 Report--

CTOnews.com, July 18 (Xinhua)-- the Federal Trade Commission (FTC) plans to issue a new regulation that requires various subscription service providers to simplify the process of unsubscribing subscriptions to protect consumers' rights. However, the proposal was opposed by media and entertainment giants, including Disney and Netflix.

Subscription service refers to the mode that users can enjoy a certain product or service within a certain period of time by paying a certain fee. For example, video streaming, games, gym members, mobile phone packages and so on are all subscription services. This model has become more and more popular in recent years, but there are also some problems. Some companies are very convenient to attract users to sign up, but set up various obstacles when users want to cancel, such as requiring users to come to the store in person or make a phone call to cancel. This not only harms the interests of consumers, but also reduces the trust of users.

To solve this problem, FTC introduced a new "click cancel" (click to cancel) rule in March this year, which is intended to "make it as easy for consumers to unsubscribe as it is to sign up for a subscription." The new rules require all kinds of subscription service providers to provide cancellation in the same way as registration. for example, if users register online, they should be able to cancel online without having to go to the store in person or by phone. FTC also requires the company to keep records of phone calls with users and provide users with clear refund policies and other information.

CTOnews.com noted that the new rule was supported by many consumers and sparked strong opposition from the media and entertainment industry. The Internet and Television Association (ESA), which includes Disney, Paramount and Warner Brothers, found in its public comments that the proposal was too vague and would lead marketers to over-disclose information and leave consumers "at a loss". The association also argued that the rule would even infringe on the freedom of expression of its members, saying that "the proposal would severely restrict or, in some cases, even prohibit companies from communicating with their customers, in violation of the first Amendment." In addition, a requirement of the proposal-that the company must keep records of phone calls with customers-would cost the company "millions" of dollars a year to comply. ESA's comments are supported by the Digital Media Association and the Film Association, whose members include Netflix, Sony Pictures Entertainment and Universal Pictures.

FTC will review the feedback it receives through public comments before considering the adoption of the final rules.

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