The FTC just issued a new ruling called “Click-to-Cancel”. Basically, they’re requiring companies that offer subscriptions make it as easy for consumers to cancel their subscriptions as it is to sign up. It’s scheduled to be in force starting in about 6 months.

I think we ALL have experienced the massive headache associated with trying to get out of a subscription, so as a consumer I think this is a huge win. And huge wins for consumers mean a more efficient economy! And it’s all thanks to BIG GOVERNMENT REGULATION. Strange?! Let me explain:

I would consider myself a “free market guy”. I think free and efficient markets are good for people. Businesses can compete on quality and price, giving consumers better options at better prices. But that phrase “free market” really means “a well regulated free market”. A TOTALLY free market might look like the final season of Game of Thrones. Whoever has the dragons just absolutely laying waste to the rest of the marketplace. Not exactly a win for consumers. In non-fantasy terms, a “totally free” market means companies can do WHATEVER they want, including unfair things. Like making it impossible to cancel subscriptions. That actually hurts the efficiency of the market because consumers can’t freely choose between options, hurting competition, making things lower quality and higher price. Not good!

So while I’m a “free market guy” I love when the big government steps in to enforce the well regulated nature of that free market! This ruling seems like an obvious step and an absolute win for consumers.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy

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By: Gabriela Gonzalez
Title: FTC’s ‘Click-to-Cancel’: A Win for Subscription Consumers
Sourced From: www.personalfinanceclub.com/ftcs-click-to-cancel-a-win-for-subscription-consumers/
Published Date: Wed, 30 Oct 2024 00:44:49 +0000

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