According to a recent survey by CNET, the average annual expenditure on subscriptions by US adults has surged to over $1,300, representing a significant increase from last year's $1,080. In addition, consumers are losing out on approximately $252 each year due to unused subscriptions. This trend highlights the challenges many face when attempting to cancel services they no longer utilize, as some companies impose hurdles that complicate the cancellation process.
In July, a court decision halted the Federal Trade Commission's (FTC) proposed Click to Cancel regulation, which aimed to require that cancellation be as straightforward as signing up. The ruling was based on the FTC's failure to conduct a necessary preliminary regulatory analysis. However, the FTC is now revising this regulation, with intentions to standardize cancellation rules across the country, as noted by Chris Mufarriage, the FTC Bureau of Consumer Protection Director.
Additionally, various state laws are emerging to combat deceptive subscription practices. Maryland's recent legislation, effective June 2026, mandates that companies provide an easy and timely cancellation process for automatic renewals. Similarly, Colorado's law enacted in 2025 requires online cancellation and consumer consent for renewal, reflecting a broader trend aimed at protecting consumers from misleading subscription practices.