Policy: How Cities And States Are Fighting Subscription Traps

What do gyms, TV shows, pet food, and smart doorbells all have in common?

Nowadays, you might use a monthly subscription or other recurring membership to access these goods or services. The average American spends $219 every month on subscriptions. That’s more than $2,600 a year. Those recurring payments mean predictable profits for companies. That is, unless you cancel.

Enter: subscription traps. That’s when companies make it easy for customers to sign up but difficult to be done. Some also use deceptive tactics to automatically enroll customers into a subscription after a free trial ends without making the terms clear. In recent years, cities and states have moved to crack down on subscription traps.

They’re also taking steps to regulate junk fees that companies can add to goods and services. That’s caused prices to soar far beyond what’s advertised. One of those leading the way is New York City, where authorities announced a ban on abusive subscription practices on Friday.

How are regulators around the country working to protect consumers?

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