Cancelling Netflix, Prime Video and other streaming services may soon get harder - All you need to know

A recent US court decision could make it harder to cancel streaming services like Netflix and Prime Video. Here’s what’s changing.

One of the biggest draws of streaming services like Netflix and Prime Video has always been the freedom to come and go as you wish. You could sign up for a month, binge your favourite series, then cancel your subscription without any fuss. No need for long phone calls, no pleading with customer care, you were done with just a few clicks. For many, this was a welcome change from the days of cable TV, where cancelling meant a drawn-out struggle.

Cancelling Netflix and Prime Video could soon involve more steps, thanks to a new US court ruling.(Unsplash)

A new ruling in the US could change things

This week, a federal appeals court in the United States struck down a rule proposed by the Federal Trade Commission, known as the ‘click to cancel rule.’ This rule would have forced streaming platforms such as Netflix, Prime Video, Disney Plus and HBO Max to make cancelling as easy as signing up. It would also have required clear consent before turning free trials into paid plans and made companies reveal exactly when promotional pricing would end.

The rule was supposed to come into effect on 14 July as part of a wider push by the Biden administration to make life easier for consumers. However, the court said the FTC had not carried out a required economic impact analysis, so the rule cannot be enforced for now. This means streaming companies are under no obligation to keep the cancellation process simple, and there is nothing stopping them from making it more difficult in the future.

At the moment, most streaming services still let you cancel with a few clicks but without any regulatory pressure, this could easily change. Companies could add more steps, hide the cancellation option deep in the settings, or even make you call customer support. Some platforms have already started making things harder. In 2023, an investigation found that Amazon Prime Video made users go through four pages, six clicks and fifteen separate decisions just to cancel. The FTC actually sued Amazon over this and that case is still ongoing.

Why Indian subscribers should pay attention

For subscribers, the ability to cancel and resubscribe easily is a key way to manage monthly expenses especially as streaming costs keep rising. In the United States, the average household now spends about $61 a month on streaming services, according to Deloitte. If cancelling becomes more of a hassle, this flexibility could disappear and users may end up paying for services they no longer use.

So what does this mean for viewers in India? While the court ruling is specific to the United States, global streaming companies often roll out similar policies across different markets to keep things consistent. Indian consumer protection rules do require that cancellation is straightforward but enforcement is patchy and companies usually follow the lead of their US headquarters. If Netflix or Prime Video make their cancellation processes more complicated in the US, there is a good chance Indian users could see similar changes.

For now, cancelling a streaming service in India is still simple but it is worth keeping an eye on these changes. If you like to subscribe and unsubscribe based on what you want to watch, be prepared for the possibility that it might not stay this easy for long.