With millions of users subscribing to streaming services for entertainment, convenience is key. However, a growing issue for consumers has been the difficulty of canceling subscriptions when they no longer need them. In response, the Federal Trade Commission (FTC) has finalized the “Click to Cancel” rule, which mandates that canceling a service must be as easy as subscribing to one.
If you run a streaming service—whether it’s for movies, music, TV shows, or podcasts—you need to ensure that your business complies with this new regulation to avoid penalties and maintain customer trust. Let’s break down what this rule means for streaming services and the steps you should take to become compliant.
What Does the Click to Cancel Rule Mean for Streaming Services?
The FTC’s new rule targets deceptive practices where consumers struggle to unsubscribe. For streaming services, this means:
Cancelation Must Be Just as Simple as Subscription:
If a user can sign up with one click or a few simple steps, they should be able to cancel with the same level of ease. A long, drawn-out cancelation process won’t be tolerated.
No Unnecessary Barriers:
You cannot require users to call customer service, send an email, or log in through complicated systems to cancel. Cancelation should be available through the same online methods used to subscribe.
Clear and Accessible Cancelation Options:
Cancelation buttons or links should be clearly labeled and easy to find on your platform. Hiding these options deep within settings or menus will no longer fly under the new rule.
Retention Offers Cannot Interfere with Cancelation:
While you can offer users incentives to stay, such as discounts or trial extensions, you cannot force them to go through multiple screens of offers before they can cancel.
Steps to Make Your Streaming Service FTC-Compliant
1. Streamline Your Cancelation Process
Review your current cancelation flow. How many steps does it take for a user to cancel their subscription? If it’s more complex than signing up, simplify it. Users should be able to cancel with a single click or within a few simple steps.
2. Eliminate Barriers Like Phone Calls or Emails
If you require customers to call or email customer support to cancel, this needs to change. The cancelation process must be completely digital and accessible from the user’s online account.
3. Make Cancelation Buttons Easy to Find
Hiding the cancelation button in hard-to-navigate menus or settings is not compliant. Make sure the “Cancel Subscription” button is clearly visible and easy to access on your platform.
4. Test Across All Devices
Ensure that your cancelation process works as smoothly on mobile apps and smart TVs as it does on desktop. Streaming services often have different interfaces across devices, so each one should offer a consistent and easy unsubscribe process.
5. Offer Retention Options Without Disruption
It’s okay to offer special deals to keep customers subscribed, but don’t make it a requirement to view these offers before canceling. Customers should be able to decline any offers and still cancel easily.
6. Send Cancelation Confirmations
Once a user cancels their subscription, send them an email or notification confirming the cancelation. This provides transparency and prevents confusion about the status of their account.
Why Compliance is Crucial for Streaming Services
With so much competition in the streaming industry, user experience is critical to retaining customers. An easy, transparent cancelation process not only ensures compliance with the FTC’s rule but also fosters trust and goodwill among users. Streaming services that make cancelation difficult often receive negative reviews and face customer backlash, damaging their reputation and long-term success.
Need Help Ensuring Compliance?
The new “Click to Cancel” rule may require significant changes to your streaming service’s infrastructure, but compliance doesn’t have to be complicated. At OneClickCancel.com, we specialize in auditing and implementing one-click cancelation solutions that make the process simple for your users while ensuring you stay compliant with FTC regulations.
Let us handle the compliance so you can focus on providing the best content to your subscribers. Contact us today for a free consultation!
