A new survey shows that nearly half of Americans have forgotten to cancel a trial subscription, confirming earlier findings that we now spend nearly $1,000 a year on subscription services.
The survey comes after the Federal Communications Commission (FCC) announced new rules to ensure that companies can't use deceptive tactics to get us to sign up for subscriptions, and make them harder to cancel …
Americans Spend Nearly $1,000 a Year on Subscriptions
Earlier this year, a survey found that the average American now spends close to $1,000 a year on a streaming subscription, and a new CNET survey finds that the number is now even higher.
According to an exclusive CNET survey, U.S. adults spend an average of $91 on subscription services each month ($1,092 a year).
In recent years, “subscription creep” has resulted in consumers paying for unwanted monthly or annual subscriptions. What’s more, companies are raising prices for existing services at short notice or without much disclosure, sometimes at the same time as they release new or expanded features. The average amount paid for recurring subscriptions and memberships will likely continue to rise.
Nearly Half Have Forgotten to Cancel a Subscription
The survey also found that nearly half of Americans forgot to cancel a subscription after a free trial ended.
48% of respondents said they signed up for a free trial of a paid subscription and then forgot to cancel it. Some said it happened multiple times a year. Millennials and Gen Z adults were the most forgetful, with 65% and 59% of respondents, respectively, saying they forgot to cancel a trial at least once.
FTC Rules Should Help
While the FTC's new rules won't prevent people from forgetting to sign up for a trial, they should at least make it less likely.
That's because companies would have to clearly state that a subscription will renew unless cancelled, and get informed consent to do so. By drawing clear attention to the terms, this should mean fewer people forget.
Companies also wouldn't be able to make it harder for people to cancel. Under the heading “tap to cancel,” the rule is that it should be as easy to cancel a subscription as it is to sign up.
Yesterday, we noted that Apple's App Store has long demonstrated best practice in this area.
Photo by Kelly Sikkema on Unsplash
