The law helping Virginians avoid subscription traps
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Here's a new Virginia law you may have missed: If you sign up for a 30-day free trial, companies have to remind you about cancellation options before they charge you.
Why it matters: It's a game changer for Virginians who've lost money over forgetting to cancel subscriptions.
The big picture: Nationwide, lawmakers are trying to crack down on what they call the "predatory" side of a growing subscription economy, reports the Virginia Mercury.
- And with nearly everything — from streaming services and news to car washes and food delivery — requiring us to subscribe nowadays, we've likely all experienced it.
- People sign up for a free trial and either miss the end date and get automatically charged or it's unclear how to cancel the subscription and the charges come anyway.
Zoom in: Virginia added that reminder requirement this year, effective July 1. But here are a few other guardrails tacked on in recent years:
- Companies need to get your consent before charging you for automatic renewals.
- They have to share how to cancel a subscription.
- And if they're offering subscriptions via a website, they're required to provide an online cancellation option that's obvious and easy to find.
What we're watching: The Federal Trade Commission wants to take it a step further and simplify the cancellation process so it's as easy to cancel as it is to sign up.
- The goal is to stop companies from adding barriers, like offering you better deals to keep you subscribed, and it'd apply to even gym memberships.
- The agency is currently reviewing public comments about the proposal, per the White House last month.
