The Hidden Cost of Neglected Monthly Subscriptions
Research suggests that many people forget to cancel their monthly subscriptions, resulting in unnecessary costs. The popularity of pay-by-the-month subscriptions has led to an increase in Americans signing up for various services but often neglecting to cancel when they are no longer needed. A study analyzing credit card records found that when customers are prompted to actively renew their subscriptions, they cancel about four times more frequently than during other months. Consumer advocates argue that businesses profit from customers' forgetfulness and inertia, and even when customers attempt to cancel, they often encounter obstacles. The Federal Trade Commission is considering a new rule that would make canceling subscriptions as easy as signing up and require businesses to send annual reminders.