Automatic subscrition renewals should be “opt in” rather than “opt out”. Too many people are caught out by companies using automatic subscription renewals. Many companies (not just gyms and dating sites) do not send the consumer a notification that the subscription is due and will be automatically renewed thus giving the consumer time to cancel. Just as many make it difficult for the customer to cancel and/or find where/how to cancel their subscription before the next renewal date. To add insult to injury, these companies waste no time in starting debt recovery action for non payment if the subscription renewal hasn’t been paid. It is time terms and conditions that contain automatic renewal clauses are made illegal.
I remember flying with a gym manager from USA, she said they make most of their money from people who sign up, not use much and then forget to cancel their subscription, especially who find it too hard to do so.
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I totally understand what you are getting at but there are circumstances where if you don’t have default renewal then the user may forget to renew and the consequences may be bad - and then the user will be complaining about that.
Even with renewal notifications (reminders), notifications can go astray or get lost in busy inboxes and busy lives.
When someone suggests “opt in” v. “opt out”, this is a false dichotomy. There is no need to default either way. If the government were interested in this issue then the government could make it that there is no default and on initial sign-up you must be presented with the choice and you must make an active choice one way or the other.
Then it’s up to the customer whether to have automatic renewal or not to have automatic renewal.
For some services, I have chosen automatic renewal and for others I have chosen manual renewal (need to pay explicitly on each renewal).
Indeed. This is a so-called “dark pattern” e.g. Dark patterns tip line
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I recently had an issue with Time magazine in this regard. My subscription email last year clearly said I would be advised in advance about renewal. Instead Time billed me one month in advance without any notification, and the amount billed was odd. It was not a listed subscription amount but something less; nor was it the previous concession amount. I queried this and advised PayPal. I got no satisfactory explanation from Time and PayPal agreed immediately to reverse the claimed payment. I advised Time that I didn’t appreciate their actions and confirmed my cancellation. PayPal is a big help in these circumstances.
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I would like Choice to look into this. Automatic subscriptions should most definitely be by choice when joining up and if you elect to have an automatic renewal you should be given notice. It should also be easy to find how to do a cancellation. Sometimes it’s almost impossible to work out how to cancel, especially streaming services.
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Seems Hello Fresh/Youfoodz have fallen foul of the ACCC
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Sign me up but with an opt out clause (just kidding)
