KQED's Forum
California's 'Click to Cancel' Law Targets Unwanted Subscriptions
Oct 4, 2024
Pilar Schiavo, Assemblymember for California's District 40 and sponsor of the 'Click to Cancel' law, joins economist Neale Mahoney from Stanford University. They discuss the overwhelming number of subscriptions consumers face today, with many paying for services they rarely use. The new law aims to streamline cancellation processes, reducing hurdles created by companies. They explore consumer frustrations, the need for transparency, and how the legislation could reshape the subscription economy, empowering Californians to take control of their finances.
57:43
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Quick takeaways
- The 'Click to Cancel' law aims to simplify the subscription cancellation process for Californians, enhancing consumer protection against unwanted services.
- The prevalence of subscription-related 'sludge' tactics illustrates the need for regulations that promote transparent business practices and consumer awareness.
Deep dives
The Rise of Subscription Services
The subscription economy has dramatically increased, with consumers now signed up for various services across entertainment, food delivery, and more. A study indicates that around 40% of individuals are paying for subscriptions they no longer utilize, which highlights a pervasive issue of forgetfulness and unintended enrollments. Many companies take advantage of this by making it difficult to cancel subscriptions or obscuring terms of service, leading to consumers spending an average of $133 per month on unused subscriptions. This trend prompted legislative action, particularly the new 'Click to Cancel' bill in California, which aims to simplify the cancellation process.
