Cancelling Netflix or Prime Video could soon be a hassle after US court blocks key rule

Cancelling Netflix or Prime Video could soon be a hassle after US court blocks key rule

Streaming subscribers may soon face more hurdles when trying to cancel services like Netflix, Prime Video, and Disney Plus. A recent decision by a US federal appeals court has struck down a key consumer protection rule that aimed to simplify the subscription cancellation process.

The rule, called the “click to cancel” regulation, was proposed by the Federal Trade Commission (FTC) and was expected to come into effect on July 14. Its goal was to ensure that cancelling a subscription would be as simple and user-friendly as signing up for one.

Additionally, the rule sought to increase transparency around free trials converting into paid plans and clearly disclose the end of promotional pricing.
This regulation was part of the Joe Biden administration’s broader consumer protection agenda, aimed at reducing digital friction and ensuring fair treatment in online services.

However, the appeals court halted the rule’s implementation, stating that the FTC failed to provide an adequate economic impact analysis before attempting to enforce it.

Without the new regulation, streaming companies are no longer obligated to make cancellation easy. While many platforms currently offer relatively straightforward ways to unsubscribe, consumer advocates warn that this could quickly change.

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In the absence of regulation, services might reintroduce confusing multi-step processes, hide the cancel button deep in user settings, or even require users to call customer support — tactics that create “dark patterns” and discourage cancellation.
Such methods are not unheard of. A 2023 investigation found that cancelling Amazon Prime Video required navigating four different pages, six clicks, and answering 15 prompts. This led the FTC to sue Amazon, alleging deceptive practices — a lawsuit that is still ongoing.

Though the court ruling applies specifically to the US, its ripple effects could influence streaming practices globally, including in India. In cost-sensitive markets, the ability to easily pause or cancel a subscription is crucial for consumers trying to manage monthly expenses.

As more households juggle multiple streaming services, the pressure on budgets continues to grow. For context, Deloitte estimates that the average US household spends around $61 (approx. ₹5,000) per month on streaming — a trend being mirrored in Indian urban centres.

If global platforms decide to standardize more cumbersome cancellation processes, Indian subscribers may find it harder to exit services they no longer need — potentially leading to unintended recurring charges.

As the digital subscription landscape shifts, consumer awareness is more important than ever. Experts recommend that users regularly review the terms and cancellation policies of their streaming services. With fewer regulations in place, the onus is increasingly on subscribers to monitor and manage their digital expenses wisely.