Navigating the FTC’s new rules on deceptive patterns in subscription cancelations
FTC proposes new rules to curb deceptive patterns in subscription cancelations, promoting ethical UX design and easy “click-to-cancel” processes.
The subscription economy continues to flourish, and as a result, consumers are juggling multiple digital and physical services. While subscriptions offer convenience, canceling them can be tricky, especially when companies use deceptive patterns in their user experience (UX) design to retain customers.
In response to this growing concern, the Federal Trade Commission (FTC) has proposed new regulation aimed at ensuring a fair and transparent cancelation process for consumers. In this article, we’ll dive into deceptive patterns, the FTC’s proposed changes, and their potential impact on UX design.
Deceptive Patterns in Subscription Cancelations
Deceptive patterns are deceptive or manipulative design practices that make it challenging for users to take certain actions, such as unsubscribing from a service. Some common deceptive patterns include lengthy cancellation processes, confusing language, and hidden cancellation buttons.
Lengthy Cancelation Process
A lengthy cancellation process is a deceptive pattern that companies may use to discourage users from canceling their subscriptions. By designing a process that requires users to go through multiple steps, answer surveys, or navigate through a series of pages, they create barriers to cancellation.
For example, a user may be forced to navigate through several pages, each presenting new offers or upsells, before reaching the final cancellation page. This creates frustration and fatigue, making users more likely to give up before completing the process. In more extreme cases, companies may require users to engage in lengthy phone calls, send written requests, or even visit physical locations to cancel their subscriptions. Deceptive Designs demonstrates the process of canceling a NYT subscription in this tweet.
Confusing Language
Confusing language is another deceptive pattern that companies may employ during the cancellation process. By using vague or ambiguous language, companies can create confusion and doubt, which can lead users to believe they have successfully canceled their subscription when, in reality, they have not.
Misleading messaging, such as “Are you sure you want to miss out on these benefits?” or “You’re one step away from unlocking exclusive offers,” can create uncertainty in users’ minds and discourage them from completing the cancellation process. Additionally, companies may use double negatives or unclear action buttons, such as “Don’t Cancel” instead of “Confirm Cancellation,” adding further complexity and confusion to the process.
Here’s an example of how Plusnet uses confusing language to opt out of getting contacted for promotional calls:
Hidden Cancelation Button & Difficult Cancelation Process
Some companies employ the deceptive pattern of hiding the cancellation button or making the cancellation process difficult to trick consumers into paying for goods or services without their consent. Deceptive subscription sellers may saddle consumers with recurring payments for products and services they never intended to purchase or no longer want.
For example, in its case against ABCmouse, the FTC alleged the online learning site made it extremely difficult to cancel free trials and subscription plans despite promising “Easy Cancellation.” Consumers were left struggling to find the cancellation option, often hidden in complex navigation menus or obscured by other elements on the page.
Here’s another great case study by the folks at growth.design about how Adobe makes it difficult to cancel their Creative Cloud Subscription. In this case study, it’s evident that Adobe has deliberately made the cancellation process challenging by requiring users to follow a series of steps, navigate through multiple pages, and upselling offers to prevent cancelation. This type of design actively works against users’ best interests and can lead to negative experiences and diminished trust in the brand.
The FTC’s Proposed Regulation
The Federal Trade Commission (FTC) has proposed a new regulation to address the issue of deceptive and burdensome tactics employed by companies during the subscription cancelation process. The regulation aims to protect consumers from deceptive patterns and ensure a transparent and user-friendly cancelation experience. Key aspects of the proposed regulation include:
Prohibition of Deceptive Tactics
The FTC’s proposal emphasizes the prohibition of deceptive tactics that companies may use to retain customers. Such tactics may include misleading language, hidden charges, or any form of misrepresentation during the cancelation process. By prohibiting deceptive practices, the FTC aims to ensure that consumers are not inadvertently trapped into recurring payments or subscriptions they no longer wish to maintain.
Click-to-Cancel Requirement
The “click-to-cancel” requirement is a central component of the proposed regulation. This requirement mandates that companies must make the cancelation process as easy as signing up for the service. In essence, consumers should be able to cancel their subscriptions with a simple click of a button through the company’s online platform. This requirement stands in contrast to current practices where cancelation may require lengthy phone calls, written requests, or other cumbersome procedures.
Clear Disclosure of Cancelation Information
The proposed regulation requires companies to clearly disclose cancelation information to consumers. This includes providing accessible and easy-to-understand instructions on how to cancel a subscription. The cancelation information must be prominently displayed and readily available to consumers on the company’s website or app.
Enhanced Oversight and Enforcement
The FTC’s proposal also includes provisions for enhanced oversight and enforcement. Companies that fail to comply with the new regulation may face regulatory action, including penalties, fines, or other legal consequences. The FTC will actively monitor compliance and take necessary actions to ensure that companies adhere to the standards outlined in the regulation.
Public Comment and Finalization
The proposed regulation is currently open for public comment, providing an opportunity for stakeholders, consumers, and businesses to offer feedback and suggestions. The FTC will review and consider the comments received before finalizing the rule. This process ensures that a wide range of perspectives are taken into account and that the final regulation addresses the concerns of all stakeholders.
Impact on UX Design and a Shift Towards Transparency
The FTC’s proposal could have a significant impact on the way companies design their subscription management interfaces. If the regulation is finalized, companies will need to move away from deceptive patterns and ensure that their cancelation processes are clear, straightforward, and easily accessible to users.
For example, instead of hiding the cancelation button or requiring users to make a phone call to cancel, companies will need to provide an easily accessible cancelation option within their online platforms. This could be implemented as a “Cancel Subscription” button prominently displayed in the user’s account settings.
To learn more about deceptive patterns and how to approach them in a user-centered design process, I would encourage you to read this article:
This shift towards transparency and ease of use is likely to improve the overall user experience and foster trust between consumers and businesses. It also aligns with best practices in UX design, which emphasize the importance of putting user needs first and creating interfaces that are intuitive and user-friendly.
Takeaways
As the proposal is currently open for public comment, there is an opportunity for stakeholders to provide feedback on the new regulation before it is finalized. Companies should take this opportunity to review their current cancelation processes and identify any potential areas of non-compliance with the proposed regulation.
As a product designer, I believe that UX design should prioritize the needs and preferences of users. As the subscription economy continues to evolve, I am optimistic that these proposed changes will lead to a better and more positive experience for both consumers and businesses.
