The article discusses 'subscription traps,' where people unknowingly sign up for ongoing services. Neha's story highlights this problem; she thought she made a single payment for a CV builder but was charged monthly for two years, losing over £500. Her husband did not question the payments. Another example is Carmen, who faced a large cancellation penalty for an Adobe annual contract she did not intend to sign. Many companies make cancelling subscriptions difficult with complex processes and persuasive tactics. The government plans new rules to simplify cancellations, requiring firms to remind customers about free trials and renewals. Consumer psychologists explain that companies make cancellation hard to increase 'cognitive effort,' hoping customers will give up rather than lose a small amount of money.
Key Vocabulary
subscription
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transaction
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direct debit
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clampdown
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cancellation penalty
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transparency
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auto-renewal
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credit score
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cognitive effort
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True or False?
Neha successfully received a full refund from LiveCareer after cancelling her subscription.
Adobe charges a cancellation penalty if customers try to end their annual contract early.
Cancelling a direct debit with your bank automatically cancels your contract with the company.
The government's new rules aim to make cancelling subscriptions as easy as signing up for them.
Consumer psychologists suggest that companies want customers to feel positive emotions during the cancellation process.
Firms will have to remind customers when a free trial period is ending or a contract is renewing.
Comprehension
What problem did Neha discover two years after using the online CV builder?
What is one new rule the government plans to introduce regarding subscriptions?
Why did LiveCareer refuse to give Neha a refund for the money taken?
What is the main reason companies make cancellation processes difficult, according to the consumer psychologist?
Based on the article, what is the most effective advice for someone trying to avoid subscription traps?
Synonym Match
Match each word with its synonym.
Collocations
Match each phrase with its meaning.
Vocabulary Practice
The company aims for full in its financial reports to build trust with investors.
Before you download the software, you need to complete the payment .
The government announced a on illegal street parking in the city center.
If you cancel your gym membership early, you might have to pay a .
Many streaming services offer an feature, so remember to turn it off if you don't want to continue.
Missing payments can negatively impact your , making it harder to borrow money in the future.
Ticket to Class
Have you or someone you know ever experienced a 'subscription trap' or a difficult cancellation process with a service? What was the outcome, and what did you learn?
Discussion
- Have you or someone you know ever experienced a 'subscription trap' or a difficult cancellation process with a service? What was the outcome, and what did you learn?
- The article mentions companies use 'behavioural nudges' to keep customers. What are some ethical considerations for businesses when designing their cancellation processes? How can companies balance profit with customer fairness?
- If you were advising a government body on new consumer protection laws for subscriptions, what three key recommendations would you make, based on the problems highlighted in the article?