Many online subscriptions of all kinds renew automatically,
and in most cases, if you want to cancel, it's a straightforward process. But
homeschoolers, as well as others who use learning websites, should beware of
companies that don't inform you when the subscription is being renewed and
don't provide an easy way to cancel.
The Federal Trade Commission website reports details of the
recent case of ABCmouse, an online learning program for children, which is
charged with misrepresenting its renewal policy, leading tens of thousands of
customers to be renewed and charged for subscriptions without full consent.
When customers tried to cancel, they found the process so lengthy and
confusing, many of them were unable to complete cancellation.
The operating company, Age of Learning, Inc., offered a
year's subscription at a discounted rate but did not ask for confirmation of
renewal when the year was over. Another offer of a one-month free trial
similarly led into automatic charges. When customers emailed or called to
cancel, they were told they had to go through a specific cancellation procedure
that often failed to produce results, despite the promise of “Easy
Cancellation” advertised at the time of enrollment.
Even if they did complete the cancellation process, many
customers found themselves still receiving charges for the program. According
to the FTC, “Company records show that, between 2015 and 2018, hundreds of
thousands of consumers who visited the ABCmouse cancellation path nevertheless
remained subscribed.”
In addition to paying a $10 million settlement, ABCmouse is
now required to communicate terms more precisely with potential customers,
especially when using the words “free,” “trial,” “sample,” and “no obligation.”
The company must obtain consumers’ informed consent before enrolling them in
any automatic billing programs and must provide simple cancellation mechanisms.
The good news is that reports of the judgment are being
circulated in business publications, so hopefully the FTC's action will inspire
other subscription-based services to operate more efficiently and in good
faith. But when you subscribe to any service, it pays to keep an eye on your
credit card bill.