Canceling a postpaid phone number, anti-virus subscription, broadband connection, bundled streaming subscriptions, and another service with auto-renewal often proves challenging. Thus, like the United States, even India needs a click-to-cancel policy to make the process simple.

First, an Introduction to the American Version of the Click-to-Cancel Rule

On Tuesday, July 8, the US appeals court in St. Louis blocked the implementation of the FTC’s click-to-cancel rule. This order was a setback for consumer rights groups. The bill will be reintroduced after making certain required changes. 

First announced in March 2023, the final draft of the regulation was introduced in October 2024 by the FTC. The rule targeted businesses that make it difficult for customers to cancel subscriptions and memberships. The rule also required companies to obtain customer consent for subscription auto-renewal and to convert free trials into paid memberships. It was challenged by a group of companies relying on subscription revenue. And the court ruled in favor of companies. As expected, consumer advocates and organizations expressed disappointment. On the other hand, industry groups and business associations welcomed the court decision. 

Later in July, Arizona State Senator Ruben Gallego introduced a bill in the U.S Congress to bring a federal click-to-cancel law. The bill has been pending with the Senate Commerce Committee as of November 2025.  

Crucial Takeaways from the FTC’s Rule That Even India Requires

What’s so special about this rule? Well, first of all, the cancellation process should be as easy as signing up for the service. If the customer was signed in with just one click, the cancellation should be comparably simple. Another key factor is cancellation using the same interface. For example, consumers who sign up online for the service should be able to cancel online, without phone conversations or store visits. Even store sign-ups should have the option to cancel on the phone or online. 

The third crucial point is to ensure the customer is not forced to fill out lengthy forms, change passwords, or answer too many questions. Retention attempts can be made only if the customer agrees to the same during signing up.

Lastly, regulators have the power to charge penalties in case companies do not comply with these rules. And failing to provide a simple cancellation process will be considered a separate violation.

Why Would Indian Consumers Benefit from a Similar Click-to-Cancel Regulation?

Even in India, converting a prepaid phone connection to a postpaid is easy. But changing it again to prepaid requires multiple phone calls, a visit to the mobile network’s store, and a waiting period of anywhere between one and three months. The story is the same for a postpaid broadband connection, music streaming subscription, or an OTT subscription signed up as part of a mobile phone plan bundle. 

But are there any statistics indicating too many consumer complaints? Yes, of course. Social media platforms like Facebook, Twitter (X), and LinkedIn are full of posts written by frustrated consumers trying to cancel their postpaid or pre-on-post broadband and phone connections. 

Now, you might wonder, why do companies want more postpaid customers? Why do they avoid quick conversion from postpaid to prepaid? The answer is simple: they get recurring revenue. A prepaid customer may or may not recharge every month. On the other hand, a postpaid customer is legally liable to pay a fixed amount to the service provider each month during the locking period. Cancellation of such connections is intentionally difficult to make it harder for the consumer to cancel. For example, if you have a JioAirFiber (pre-on-post) connection, you need to call or email customer service at least 15 days before the monthly bill cycle date to get the connection cancelled. The company’s executives from the retention team will call you at least three times to convince you not to cancel the account.

A Click to Cancel rule will make the cancellation process as simple as the procedure to sign up. It will help consumers as they won’t have to undergo torturous calls and questions to cancel a service. And most importantly, they will save a lot of money on unnecessary bills. 

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