CINCINNATI — Breaking up with subscription services just got harder again. A federal court has blocked the Federal Trade Commission's new rule that would have made canceling subscriptions as simple as signing up.
The "click-to-cancel" policy was blocked just days before it was set to take effect, leaving consumers to navigate often complicated cancellation processes for everything from gym memberships to streaming services.
WATCH: Our top tips on how to avoid subscription charges post-free trial
How free trials can trap consumers
Free trials sound enticing — 30 days of service at no cost — but many consumers find themselves stuck with unexpected charges when they forget to cancel before the trial period ends.
"It's a lot easier to sign up for a subscription, especially a free trial that will eventually charge you, than it is to end a subscription," said Nerdwallet's Sara Rathner.
Many consumers share this frustration. When I asked viewers on Facebook if they've ever forgotten to cancel a trial and been forced to pay auto-renewal fees, Becky Miller summed up the common experience: "If I'm told it's 'free' and then they ask for my credit card info, I know there's nothing 'free' about it!"
The blocked FTC rule
The FTC's "click-to-cancel" rule was designed to simplify cancellations, requiring companies to make ending a subscription as easy as starting one. However, a federal court temporarily blocked the rule while legal challenges proceed.
"Companies shouldn't be able to engineer a website to trap you in a doom loop simply so that they can keep taking money out of your account every single month when you don't want them to anymore," said Erin Witte, Consumer Federation of America Director of Consumer Protection.
This frustrating reality affects many consumers who continue paying for services they no longer use.
How to protect yourself from subscription traps
While some lawmakers push to revive the blocked rule, here are ways to protect your wallet right now:
1. Read the fine print
Before signing up for any free trial, take time to understand the terms and conditions.
"Try to look before you sign up at what the cancellation process really looks like so that you going into it, what it's going to take for you to cancel when you don't want that product or subscription anymore," Witte advised.
2. Verify important details
Always verify:
- Whether the company will notify you before charging
- If there's a minimum commitment after the trial ends
- The exact cancellation process
3. Use technology wisely
While some budgeting apps can help manage subscriptions, be cautious about adding yet another service.
"Some of those apps do charge money, so that's something to keep in mind that you're you may be just adding another subscription to your plate," Rathner noted.
4. Set reminders
Before clicking that tempting "Start Free Trial" button, set a calendar alert two days before it ends so you don't forget to cancel if you don't want to continue the service.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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