Cancellation Policies and Your Subscription Service

Cancellation Policies and Your Subscription Service

Scott Dylan Westerlund
Scott Dylan Westerlund
 | 

In 2021, the subscription economy is worth an estimated $650 billion. If you thought that was high, then it should shock you to learn that by 2025, experts predict the subscription industry will grow to an unbelievable $1.5 trillion!

 

There’s a good reason why subscriptions are so popular. Not only do customers benefit by getting what they like, but businesses benefit from a consistent revenue, too. What happens if you’re thinking about cancelling your subscription service before you get billed again, though? Will you be entitled to a subscription refund? How do you cancel a subscription, anyway?

 

If you’re currently paying for a subscription or thinking about joining a subscription service, then you’ll benefit from learning about the law surrounding these services. Learn everything you need to know below.

 

What Does the Law Say About Cancelling Your Subscription Service?

 

The worst thing about automatic subscription services is getting an unexpected charge on your account. Far too many Americans subscribe to a service, forget about it, then end up getting charged for services they don’t want or need. Even worse, some people end up getting charged despite not wanting the service anymore and not knowing how to cancel it.

 

The good news is that the law is (mostly) on the side of the subscribers. The FTC argues that not only do companies need to disclose when and how much a member will be charged after an initial trial period, but subscription companies must also provide a “simple” mechanism to cancel subscriptions, too. Further, the FTC explains that subscription companies may be misrepresenting their services by using terms like “free,” “trial,” and “no obligation,” when a subscriber needs to take specific actions to prevent getting charged.

 

Are You Owed a Subscription Refund? Researching the Subscription Refund Policy

 

Right now, Congress is considering passing The Unsubscribe Act, which would require subscription companies to allow a customer to cancel a subscription in the same way that they signed up. It will also require subscription companies to provide customers with a clear understanding of the subscription’s terms, the refund policy and the terms of the contract.

 

This new measure is great, but what about right now? The current pandemic situation has created a nightmare for some subscription services who charged customers without providing them access to the services they were paying for due to Covid-19. As a result, several lawsuits are currently ongoing in court. If you think you were unfairly charged or are owed a subscription refund, then it’s a good idea to discuss your situation with a quality lawyer in your area. You may be entitled to join a class action lawsuit regarding the unfair subscription charges. In some cases, you may even be entitled to a full subscription refund.

 

You can also dispute credit card charges when you never received the products or services outlined in your subscription. Thanks to the FTC and the Fair Credit Billing Act, customers are only liable for unauthorized charged up to $50. If your subscription amount exceeds that, then it may be wise to dispute the charge with your financial intuition. Consumers are also not held liable for goods and services that weren’t delivered as agreed upon based on your subscription contract.

 

Once you dispute the charge, an investigation will ensue.

 

How to Cancel a Subscription With Ease

 

Are you currently stuck in a subscription trap? The first thing you need to do is identify who owns your subscription. For example, did you purchase the subscription through a service like Apple or Google Play? Is your subscription directly with a company like Netflix or Disney+?

 

Once you’ve identified the party you subscribe from, do a quick internet search on how to cancel a subscription with that company. You should find plenty of articles with step-by-step instructions. If you don’t want to do that, then consider contacting the company directly and asking them to cancel your subscription.

 

Has a Subscription Service Violated Your Rights?

 

Do you feel like a subscription service violated your rights and unfairly charged you for services or products you never received? Despite the coronavirus pandemic, it’s still illegal for businesses to charge your account for services or products you don’t want or need without providing you with what was promised.

 

If you believe you’re entitled to a subscription refund, then it’s advised that you speak with a lawyer ASAP. It’s possible that there’s ongoing litigation involving the subscription service that didn’t refund you, which means you could possibly join a current class action lawsuit. If there isn’t a current lawsuit, then you and your lawyer may decide to initiate one yourselves. Head over to our lawyer search now to find a quality lawyer in your area who can help you get the refund you deserve.
 

This article is intended to convey generally useful information only and does not constitute legal advice. Any opinions expressed are solely those of the author, not LawChamps.
Scott Dylan Westerlund

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