Some states want to make it easier to cancel subscriptions
Pushback from cable, streaming services has challenged their efforts.
More details from Representative Freeman from Tennessee…
Freeman introduced a bill that would require more notice from companies before subscriptions are automatically renewed.
Originally his bill also would have required companies to get another “yes” from customers — “affirmative consent,” in legislative lingo — before charging consumers’ credit or debit cards. But after strong objections from cable and streaming services, Freeman said, the bill was amended to eliminate that requirement.
“They got all bent out of shape,” he said of the industry.
In April, Tennessee Republican Gov. Bill Lee signed the legislation. State law now requires companies to give “clear and conspicuous notice” to consumers if the automatic renewal will occur more than 60 days after the initial sign-up, and mandates that they clearly communicate when they will begin charging for the service.
About half a dozen other states have enacted similar laws this year. Companies that rely on subscriptions say some of the tougher measures will only annoy and confuse consumers.
Minnesota has a new law…
The Minnesota measure, which takes effect Jan. 1, stipulates that companies must give customers the opportunity to cancel via a “simple mechanism,” such as a checkbox or submission button.