Podcast Summary
FTC proposes new rules to make subscription cancellation easier: FTC aims to shift burden of proof to companies, requiring explicit consent for recurring billing, addressing consumer protection issue of unwanted subscriptions and unexpected charges.
The Federal Trade Commission (FTC) is proposing new rules to make it easier for consumers to cancel subscriptions. This issue, known as "subscription overload," is a common problem where people end up with numerous unwanted subscriptions, often incurring unexpected charges. The roots of this issue can be traced back to 1973 and a piece of federal regulation called the negative option rule. This rule allows companies to automatically enroll customers in recurring billing for a product or service unless the customer explicitly declines. The FTC's new proposal aims to shift the burden of proof to companies, requiring them to obtain explicit consent before enrolling consumers in recurring billing. Meanwhile, the Health and Human Services department is working to address a backlog in organ transplants. Both issues are important in their own right, with the former addressing consumer protection and the latter addressing life-saving medical procedures.
Columbia Record Club's Deceptive Marketing Tactics in the 1960s: Despite consumer protection laws, some businesses still use deceptive tactics like negative options to automatically enroll customers in subscriptions and charge them monthly without clear consent. Consumers must read the fine print and understand the terms to avoid unexpected charges.
The Columbia Record Club's marketing tactics in the 1960s, which involved sending customers 12 CDs for the price of one and automatically enrolling them in a CD of the month club, were considered deceptive and manipulative by the government. This practice, known as a negative option, meant that if you didn't explicitly opt out of receiving a CD each month, you would be charged for it. In response, the Federal Trade Commission (FTC) adopted the negative option rule in 1973, requiring businesses to clearly disclose the terms of these plans. However, the FTC now recognizes that this rule is no longer sufficient to cover modern subscription practices, making it difficult for consumers to cancel online subscriptions. This is because many companies make the cancellation process intentionally confusing or burdensome. Despite advancements in technology and consumer protection laws, some businesses continue to employ negative option tactics, making it essential for consumers to read the fine print and understand the terms of their subscriptions.
FTC proposes 'click to cancel' rule for easy product cancellations: The FTC aims to simplify subscription cancellations with a new rule, prioritizing consumer convenience and imposing penalties for difficult cancellation processes. Meanwhile, the urgent need for organ donations highlights the importance of streamlined processes in all areas of life.
FTC Chair Lina Khan is proposing a new rule called "click to cancel" which would make it as easy for consumers to cancel a product or service as it is to sign up. This rule would apply to any method of subscription, whether it be online or over the phone. The FTC aims to impose financial penalties on companies that try to make cancellation difficult. The public comment period for this proposal is ongoing. Meanwhile, in a more pressing matter, over 100,000 people in the US are currently waiting for an organ donation, with approximately 17 people dying daily while on the waitlist. This underscores the importance of prioritizing and simplifying processes, whether it be in business or in matters of life and death.
Competing Organizations to Oversee Organ Donation System: The US Department of Health and Human Services plans to introduce competition in the organ donation system to increase efficiency and accountability by allowing multiple organizations to compete for contracts to recover and transport organs.
The US Department of Health and Human Services is planning to overhaul the organ donation system by introducing competition. This competition doesn't refer to buying or selling organs but rather multiple organizations overseeing the system instead of relying on one nonprofit, UNOS, which has been in charge for decades. The proposed change comes amidst concerns about inefficiency and potential issues in the organ procurement process, including lost organs, sick organs being transplanted, and investigations into inflated performance metrics. The goal is to increase efficiency and accountability by allowing multiple organizations to compete for contracts to recover and transport organs from deceased donors to recipients.
Changes to organ donation system for transparency and efficiency: The health department aims to eliminate manipulation and deceit in organ donation by implementing changes to the system, ensuring fairness and efficiency.
The health department is making changes to the organ donation system in hopes of reducing "shenanigans" and increasing efficiency. This comes after issues with having one overseer and the potential for multiple competing overseers. It's crucial that organ donation is free from any kind of manipulation or deceit. The NPR show "The Indicator" also mentioned that listeners are locked into a stapler of the month club, and the episode was produced by Britney Cronin, with engineering from Catherine Silva. The show is a production of NPR, and sponsors include Saatva, offering luxury mattresses at affordable prices online, and Fundrise, which is expanding its real estate portfolio with potentially discounted assets due to high interest rates. Listeners are encouraged to consider the investment objectives, risks, charges, and expenses before investing.
