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Trouble canceling your gym membership? This is how the new “click-to-cancel” rule can help you
Ever struggled to cancel a membership? FTC Commissioner Lina Khan has announced new rules to protect consumers in this situation.
This week, the Commissioner of the Federal Trade Commissioner, Lina Khan, announced new protections for consumers that make it easier to cancel memberships, such as those for gyms and subscription services. The action came after the agency received thousands of comments from the public about how businesses made it easy to sign up but challenging to cancel. Now, companies will be required to allow consumers to cancel their membership online over the phone. As far as online options, they must be clear, making it as easy to cancel as it was to sign up.
Consumers can often be charged for services they signed up for without understanding what they would be billed when they initially agreed. Additionally, it is challenging when one tries to cancel these subscriptions, and they cannot find out how or are forced to jump through many hoops.
These new rules end that, forcing companies to clarify what the customer will be charged for and easy to cancel, should they choose. If a business has a worthy product, consumers will want to subscribe, but gone are the days that money can be made by making it hard for consumers to take their business elsewhere.
Will Vice President Harris keep Commissioner Khan in her role if elected?
Vice President Harris’s campaign has made clear that the cabinet will change under her administration if elected. To the dismay of some Democrats, she has said that if she wins, she will appoint a Republican to the cabinet.
Some officials who have served under President Biden, like Secretary of State Anthony Blinken, have also made clear that they will not continue if she is elected in November. When it comes to the fate of FTC leadership, some supporters of the vice president have made it clear they want to see her gone. Billionaire Mark Cuban, who has been a staunch supporter of the Harris campaign since she became the Democratic nominee, said at an event earlier this month that if it were up to him, he would not keep Khan at the FTC. He said her focus on breaking up major technology companies threatened the industry’s advancements and competitiveness in the development of artificial intelligence. These comments were rebuked by members of Congress, including Vermont Senator Bernie Sanders, who touted Khan’s work as a commissioner, arguing that she “is doing an exceptional job preventing large corporations from ripping-off consumers & exploiting workers.”
Congresswoman Alexandria also came to the defense of Commissioner Khan, explaining that there would be a “brawl” if she was replaced under a new Democratic administration. As of mid-October, Vice President Harris has made no commitment to keeping Khan on as commisionaire.