Many Australians are paying for a subscription they no longer need simply because they find it too difficult to cancel, a report has found.
The Consumer Policy Research Centre has revealed one-in-10 Aussies are stuck with something they don’t want and one in three have been pressured not to unsubscribe.
Its research into subscription traps comes as the number of video streaming subscriptions rises in Australia, and as countries including India, the US and the UK make legal changes to stop companies employing “dark patterns” to trap consumers.
The report, called Let Me Out, surveyed 1000 Australians with at least one subscription and tested the service cancellation policies of companies ranging from news and retail to fitness and photo-editing firms.
It found almost half of all Australian subscribers had spent more time trying to cancel a subscription than they expected, and three quarters had suffered a negative cancellation experience.
Some of the tactics designed to slow down or dissuade users from unsubscribing included making them phone the business to cancel their account, forcing them to give reasons for leaving, and “confirmshaming” in which they were asked to select options such as “I don’t like discounts”.
Other strategies included offering temporary discounts to stay subscribed, hiding cancellation options, and offering disingenuous free trials.
Consumer Policy Research Centre deputy chief executive Chandni Gupta said the researchers were not surprised to find one in 10 consumers had given up trying to unsubscribe to some services in the face of such difficulty.
“Subscription traps are costing people time, money and their wellbeing, and people are being expected to jump through hoops just to say, ‘No, I don’t want this subscription any more’,” she told AAP.
“It delays that time between when you decided to cancel the subscription and when you actually can, and in that time you continue to pay for something that you no longer need or want.”
While the research identified plenty of companies making it harder to stop paying for their services, Ms Gupta said it also found some businesses making it simple.
Netflix and Disney+, for example, allowed simple cancellations, World Vision reminded subscribers about annual renewals, and Mamamia sent subscription reminders.
Making the process simple could be a good business practice, Ms Gupta said, as the survey found 90 per cent of Australian consumers were likely to use a service again if they were allowed to cancel a service easily.
“We live in a digital economy now where we own nothing and we subscribe to everything,” she said.
“In that space, it should be really easy to leave something as easy as it is to join.”
The report recommended the federal government introduce laws against unfair businesses practices, but also consider introducing a subscription management option through banks in the interim.
By Jennifer Dudley-Nicholson in Brisbane
Source: AAP