American households are haemorrhaging hundreds of pounds each year on subscriptions they no longer use or have forgotten about, prompting a rare bipartisan effort in Congress to clamp down on deliberately complex cancellation processes.
The Bipartisan 'Unsubscribe Act' Returns
In a move that could set a precedent for consumer protection, a Democrat and a Republican are joining forces to reintroduce legislation known as the Unsubscribe Act. California Democrat Mark Takano and Nevada Republican Mark Amodei will present the bill in the House of Representatives, aiming to outlaw subscription cancellation procedures that are more difficult than the sign-up process.
"Cancelling a subscription should be just as easy as signing up for one," Takano stated. He argues that companies intentionally design convoluted exit strategies, banking on consumers being too busy or forgetful to navigate them, especially after free trial periods end.
The Staggering Cost of Forgotten Subscriptions
Multiple surveys highlight the scale of the financial drain on US consumers. One analysis suggests the average American household wastes approximately $127 (£100) annually on unused subscriptions. A separate CNET survey indicates the figure could be as high as $204 (£160), with younger Gen Z subscribers losing around $276 (£217) per year across various streaming platforms, apps, and digital memberships.
"A $5, $15, or $50 monthly subscription may not feel like much – but over a year, that can be $600 or more," Takano explained. "With two or three subscriptions, some people can easily lose over $1,000 a year."
Legislative Details and Industry Pushback
The proposed legislation mandates clear consumer consent before charging after a trial ends and requires companies to make cancellation no more complicated than enrolment. It would also ban automatic contract renewals without explicit approval and force sellers to send periodic reminders about charges and how to cancel.
While the bill has garnered support from major consumer advocacy groups like the Consumer Federation of America, it faces stiff opposition from powerful industry coalitions. Trade associations for cable providers, telecoms, and online advertisers previously challenged a similar Federal Trade Commission (FTC) rule in court, arguing it could "burden, confuse, and harm consumers" and overstepped regulatory authority.
The FTC's own 'click-to-cancel' rule was overturned by a federal court in July on procedural grounds, not on its merits. The agency is now quietly seeking public input on reviving it.
Takano, who has championed this legislation since 2017, believes the bipartisan support this time marks a turning point. "The FTC’s rule was overturned on a technicality," he said. "This bill makes the law clear to the courts and the business community: companies have to play fair."
