One of the strongest points of streaming services such as Netflix, Prime Video or Disney Plus to date is flexibility. When users can easily register, enjoy their favorite content and cancel at any time with just a few clicks. However, this could soon become a thing of the past after a new ruling in the United States.
Recently, a US federal appeal court rejected the click to cancel rule proposed by the Federal Trade Commission (FTC).
This regulation was once expected to force streaming platforms to simplify the registration cancellation process, while requiring them to clearly announce the time the promotion ends and request confirmation before switching users from the trial package to the paid package.
The regulation was originally scheduled to take effect from July 14 as part of the Biden administration's efforts to protect consumer rights.
However, according to the court, the FTC has not completed the economic impact analysis (a mandatory step) so it cannot enforce the above regulation.
As a result, streaming companies are no longer legally bound to keep the cancellation process simple, and could make cancellation more difficult in the future.
In fact, some platforms have started going in this direction. In 2023, an investigation showed that Amazon Prime Video required users to perform up to 4 page operations, 6 clicks and 15 decisions to cancel their subscriptions. The FTC has even filed a lawsuit against Amazon, but the case is still in the process of being heard.
The situation in the US could set a precedent for other countries. Although the ruling applies only domestically in the United States, global streaming companies often synchronize policies across multiple markets to ensure a consistent experience.
In India, consumer protection laws require simple cancellations, but the enforcement process is still limited. If platforms tighten in the US, users in other countries, including Vietnam, are also at risk of facing more complicated cancellation processes.
As streaming costs increase, the ability to control subscriptions is an important tool to help consumers save costs. However, in the near future, simply canceling a service with just a few steps may no longer be obvious.
