Why do companies make subscription cancellations difficult?

Companies aim to retain customers and maximize revenue. Complex cancellation processes reduce churn, even if users no longer need the service.

Which laws protect consumers from unfair subscription practices?

In the US, the ROSCA (2010) law requires transparency in subscription terms and easy cancellation. Some states, like California and Maryland, have additional rules mandating simple cancellation methods.

What is the 'Click to Cancel' rule?

This FTC initiative would require companies to make subscription cancellations as simple as signing up. The rule was blocked by a court but is being revised by the FTC.

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Business

How Companies Complicate Subscription Cancellations and What to Do About It

June 24, 2026

Photo: CNET

Quick answer

Companies complicate subscription cancellations to retain customers, but US laws like ROSCA and state regulations protect consumers.

According to a CNET study, the average US adult spends over 97 006 ₽ annually on subscriptions, with around 18 655 ₽ going toward unused services. One reason for these losses is the complex cancellation procedures companies implement to discourage users from opting out. In 2023, the Federal Trade Commission (FTC) attempted to introduce the 'Click to Cancel' rule, which would require businesses to make cancellations as straightforward as signing up. However, a court blocked the initiative due to a lack of prior regulatory impact analysis.

Despite this setback, the FTC continues to combat unfair practices. Specifically, the commission enforces the Restore Online Shoppers’ Confidence Act (ROSCA), passed in 2010. This law prohibits companies from using 'negative options'—situations where a customer’s silence or inaction is interpreted as consent to continue charges. ROSCA mandates that users receive full details about pricing, billing dates, and cancellation terms before subscribing. Additionally, companies must provide an easy way to cancel, comparable to the subscription process.

State-level laws also protect consumers. For example, California and Maryland require companies to obtain explicit consent for automatic renewals and provide simple cancellation methods. In Colorado, a law effective from 2025 mandates online subscription cancellations and a direct link for opting out. Similar measures exist in Connecticut, Massachusetts, and New York. Experts note that such laws help reduce unfair practices, but a unified federal standard is still lacking.

Common questions

Why do companies make subscription cancellations difficult?: Companies aim to retain customers and maximize revenue. Complex cancellation processes reduce churn, even if users no longer need the service.
Which laws protect consumers from unfair subscription practices?: In the US, the ROSCA (2010) law requires transparency in subscription terms and easy cancellation. Some states, like California and Maryland, have additional rules mandating simple cancellation methods.
What is the 'Click to Cancel' rule?: This FTC initiative would require companies to make subscription cancellations as simple as signing up. The rule was blocked by a court but is being revised by the FTC.

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