Subscription Service Disputes: Cancel, Refund, and Billing Issues

Subscription services have become ubiquitous - from streaming and software to meal kits and mystery boxes. Unfortunately, many make it deliberately difficult to cancel or continue billing after you've tried to stop. The Federal Trade Commission (FTC) has taken action against deceptive subscription practices - know your rights to fight back.

FTC Rule: The FTC's "click to cancel" rule requires that canceling must be as easy as signing up. Companies can't make you jump through extra hoops or call to cancel.

Common Subscription Problems

Cancellation Issues

  • No clear way to cancel
  • Requires phone call during limited hours
  • Agents who won't process cancellation
  • Cancellation "didn't go through"
  • Hidden renewal dates
  • Automatically converted to annual plan

Billing Problems

  • Charged after cancellation
  • Price increased without notice
  • Free trial converted to paid
  • Double billing
  • Wrong amount charged
  • Unauthorized family/additional charges

Service Issues

  • Service not as described
  • Content removed or reduced
  • Quality degradation
  • Features eliminated
  • Access problems

Your Legal Rights

FTC Negative Option Rule

  • Clear disclosure of terms before purchase
  • Affirmative consent to charges
  • Easy cancellation mechanism
  • Canceling must be as easy as signing up

State Auto-Renewal Laws

Many states require:

  • Clear disclosure of auto-renewal terms
  • Consent before charging
  • Reminder before renewal
  • Easy online cancellation
  • Confirmation of cancellation

Credit Card Protections

  • Dispute unauthorized charges
  • Services not provided
  • Charges after cancellation
  • 60-day dispute window from statement

Document Everything: Screenshot your cancellation confirmation. If you cancel by phone, note the date, time, rep name, and confirmation number.

How to Cancel Properly

Best Practices

  1. Find cancellation option in account settings
  2. Screenshot each step of the process
  3. Get confirmation email
  4. Save confirmation number
  5. Note the effective date
  6. Follow up if no confirmation received

If No Online Option

  1. Call during business hours
  2. Record date, time, rep name
  3. Request confirmation email
  4. Send follow-up email confirming call
  5. Check next statement

Written Cancellation

  • Send email to support/billing
  • Include account details
  • State clear cancellation request
  • Request written confirmation
  • Keep copy of correspondence

If They Keep Billing

First Steps

  1. Contact company with proof of cancellation
  2. Demand refund for unauthorized charges
  3. Set deadline for response
  4. Document all communications

Escalation Options

  • Credit card dispute: Most effective for recent charges
  • Bank stop payment: For recurring ACH
  • FTC complaint: ftc.gov/complaint
  • State AG: Consumer protection division
  • BBB: Better Business Bureau

Credit Card Dispute

  • Call number on back of card
  • Explain unauthorized recurring charge
  • Provide cancellation evidence
  • Request block on future charges from merchant
  • File within 60 days of statement

Block Future Charges: Ask your credit card company to block all future charges from the merchant. This prevents them from billing you again.

Specific Subscription Types

Streaming Services

  • Usually have clear online cancellation
  • May try retention offers
  • Check for annual vs monthly
  • Access typically continues until billing cycle ends

Software/SaaS

  • May have annual commitments
  • Early termination fees possible
  • Review contract terms
  • Data export before canceling

Subscription Boxes

  • Often require advance notice
  • Skip option vs full cancel
  • Check for minimum commitment
  • Shipping cutoff dates

Membership Programs

  • May have different tiers
  • Annual fee structures common
  • Cancellation vs downgrade
  • Benefits during cancellation period

Free Trial Traps

Common Tactics

  • Require credit card for "free" trial
  • Short trial periods (7 days)
  • Automatic conversion to paid
  • Difficult cancellation process
  • High price after trial

Protecting Yourself

  • Set calendar reminder before trial ends
  • Use virtual card numbers
  • Cancel before trial expires
  • Read terms before starting
  • Screenshot trial terms

If Charged After Trial

  • Contact company immediately
  • Request full refund
  • Cite lack of clear disclosure if applicable
  • Credit card dispute if refused

Virtual Cards: Services like Privacy.com let you create virtual card numbers with spending limits. Use for free trials to prevent unexpected charges.

Getting Refunds

When You're Entitled

  • Charged after proper cancellation
  • Service not provided
  • Unauthorized price increase
  • Free trial conversion without consent
  • Material change in service

Refund Request Tips

  • Be specific about charges
  • Reference cancellation date/confirmation
  • Cite relevant laws if applicable
  • Request specific refund amount
  • Set deadline for response

Small Claims Court

When to Consider

  • Significant charges accumulated
  • Company refuses refund
  • Credit card dispute unsuccessful
  • Clear evidence of violation

What to Bring

  • Cancellation proof
  • Billing statements
  • Communications with company
  • Terms of service (at signup)
  • State auto-renewal law citations

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