Make subscriptions as easy to cancel as they are to start

What is the topic?

This petition asks the New Zealand Parliament to change the Fair Trading Act 1986. Specifically, it proposes a rule that if a company allows you to sign up for a service online or by phone, they must allow you to cancel it using that same method. The process to cancel must be just as easy to find and use as the process to sign up. This is often called the "click-to-cancel" rule.

Current situation in New Zealand

Currently, there is no specific law in New Zealand that mandates an "easy cancellation" standard for subscriptions. Many consumers report that while signing up for streaming services, gym memberships, or software is quick and digital, cancelling often requires calling a phone number, sending a letter, or navigating a hidden menu. The petition notes that a previous member’s bill proposed similar changes but was never debated in Parliament because it was not drawn from the ballot.

Arguments in favour

• Consumer fairness: Supporters argue it is unfair to make it harder to leave a contract than to enter one. If a company profits from you staying, they should not create artificial barriers to stopping payment.
• International precedent: The petition cites New York State law, which already requires automatic-renewal services to offer cancellation as easy as sign-up. This suggests the model works in other jurisdictions.
• Reducing waste: Easier cancellation may reduce the number of people who forget to cancel services, leading to less consumer dissatisfaction and fewer complaints to the Commerce Commission.

Arguments against

• Business complexity: Some businesses argue that verifying identity over the phone or via secure portals is necessary to prevent fraud or unauthorized cancellations, especially for high-value contracts.
• Legal clarity: Critics may argue that the Fair Trading Act already prohibits misleading conduct. If a company makes cancellation difficult, it might already be considered misleading or unfair under existing broad provisions, making a specific new law redundant.
• Implementation costs: Small businesses might face technical or administrative costs to ensure their cancellation systems are identical in ease to their sign-up systems.

Relevant context

The Commerce Commission regularly receives complaints about "dark patterns" in digital services, where interfaces are designed to trick users into continuing subscriptions. While the Fair Trading Act prohibits misleading or deceptive conduct, it does not explicitly define the "ease" of cancellation. This petition seeks to make that standard explicit in law. The issue affects all New Zealanders who use digital services, with particular impact on those who struggle with phone-based customer service or have limited digital literacy.

⚡ Cached from a previous visit