The report found that groups with unsatisfactory subscription cancellation processes include food subscription business HelloFresh, podcast and audio business Amazon Audible, networking site LinkedIn, software business Adobe and UNICEF Australia’s Paddington Postcard program.
A spokesperson for UNICEF Australia said: “Like many organisations, we ask donors to contact us directly in the event they wish to cancel their subscription.”
But the report praised streaming giant Netflix for its clear “cancel membership” button; language and dictionary tool SpanishDict, which provides one link to unsubscribe; and charity World Vision, which does not automatically renew yearly sponsorships.
It said subscription best practices included using the same platform to sign up and cancel, offering discounts or reduced rates upfront rather than at cancellation, and not hiding the “cancel” button.
Gupta said Europe, the UK, India and the US had made strides in improving subscription processes, but Australia lagged.
The competition watchdog said that before consumers agree to a subscription contract, businesses must provide clear and accurate information about any automatic renewal of a contract, consumers’ ability to cancel a contract, and any cancellation fees that might apply and when.
An Australian Competition and Consumer Commission spokesperson said it supported covering unfair trading practices under the Australian Consumer Law.
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