http://www.wsj.com/articles/canceling-a-digital-subscription-is-hard-thats-changing-58908a95?

Canceling a Digital Subscription Is Hard. That’s Changing.

Cancellation buttons are often buried, but some apps see the benefit of easy-come, easy-go customers

By Dalvin Brown, published June 21, 2023 11:00 pm ET

PHOTO ILLUSTRATION: THE WALL STREET JOURNAL, ISTOCK

It’s a familiar scenario: You go to cancel a subscription to an online service and find yourself trapped in a labyrinth of confusing processes and hidden barriers. 

The misery-inducing cancellation practice is at the center of a lawsuit lodged by the Federal Trade Commission against Amazon AMZN -0.76%decrease; red down pointing triangle on Wednesday. The FTC alleges the online retail giant used deceptive user-interface designs known as “dark patterns” to trick customers into enrolling in auto-renewing Prime subscriptions—and intentionally made it tough for people to cancel. 

Amazon denies the allegations.

“The FTC’s claims are false on the facts and the law,” an Amazon spokesman said in a statement. “By design we make it clear and simple for customers to both sign up for or cancel their Prime membership.”

The lawsuit against Amazon isn’t the first such action taken by the FTC. The government agency has also investigated the difficult subscription-cancellation process for cosmetics, newspaper and gym businesses, as well as phone and internet service providers. 

But lately, those who make the process harder have started to shrink. 

Some streaming video providers—such as Netflix and Paramount+—and other online subscription services give easier access to the cancel button.

Others are changing their policies in response to pressure from peers as well as federal and state-level policy makers, say academics and consultants who work with service providers. There is also growing fear within some companies that a difficult cancellation process will create ill will among consumers.

“In the short term, it works,” says Robbie Kellman Baxter, a consultant working with subscription-model businesses. “Companies may get an extra month of revenue. But in the long run, they risk that you cancel and never come back to that service.”

Why the roadblocks?

While user-experience specialists say companies make it hard to cancel to retain customers, the companies themselves may cite other reasons for adding speed bumps to the process. It could prevent users from accidentally abandoning their memberships, for instance.

Software developers may give priority to adding features that increase engagement, rather than devoting resources to something designed specifically to reduce revenue.

“Tech companies are really, really good at easing you into their products, and they’ve learned the opposite—how to slow people down and make it difficult for them to leave,” said Jeff Hancock, a professor of communication at Stanford University researching how people use deception with technology.

One technical reason an app-based service might make you cancel on the web is that you signed up for that service outside of Apple or Google’s in-app payment services, says Baxter.

In other words, those services might not have access to their own billing systems from within the app.

But academics say any friction can be good for the bottom line.

“If the process requires a little bit of effort, then some consumers may not decide to quit,” said Todd Bacile, associate professor of marketing in the college of business at Loyola University New Orleans.

The FTC in its suit also said Amazon used “manipulative design elements that trick consumers into signing up” for additional subscriptions as well, such as Audible audiobook or Kindle Unlimited ebook borrowing, amounting to monthly fees in excess of the basic Prime membership. These subscriptions, too, were difficult to cancel, the FTC said.

One click to quit

Some service providers are making it easier to cancel subscriptions.

Apple organizes all user subscriptions in its Settings menu—services offered directly from the company and also those sold from within third-party apps. Each listing comes with renewal information and a cancel button.

Other streaming video services also have straightforward cancel options. This can increase the prevalence of seasonal subscribers, says Baxter. People might join a service when their favorite shows are on, then drop it during the off season. 

The FTC’s move against Amazon may cause more companies to make their services more cancel-friendly, academics say. 

“Smaller companies saw easy cancellation as a point of differentiation,” said McLean Donnelly, a professor teaching user experience at Savannah College of Art and Design and former director of U.S. design at retail software giant Shopify. He cited Grammarly and Robinhood as examples. “However, going after the top player in e-commerce sets a new standard for all other companies.”

—Cordilia James contributed to this article.