Automatic renewal cannot play word games

2024-09-02

The issue of automatic renewal of apps, such as being charged even after uninstalling the app, default page selection, and no reminder before deduction, has recently attracted attention again. In the hot topics of consumer rights protection public opinion released by the China Consumers Association in the first half of the year, automatic renewal "easy to activate but difficult to unsubscribe" was included. The non-standard issue of "automatic renewal" has been criticized by consumers, and relevant departments have repeatedly introduced governance measures. For example, the Implementation Regulations of the Consumer Rights and Interests Protection Law of the People's Republic of China, which officially came into effect on July 1st this year, clearly stipulate that consumers should be notified in a prominent manner before receiving services and automatic extension, renewal, and other dates. Continuous paying users can increase merchants' income. Although the single fee for "renewal" is not high, it is still a considerable income for platforms with a large user base. As a result, some businesses have started to set up routines and play word games with users. For example, relevant regulations require "to draw consumers' attention in a prominent manner", but the definition of "prominent manner" is not clear. Therefore, merchants have come up with the idea of "understanding different", taking advantage of the gap of "different standards", and using only prompts within the APP to make consumers unknowingly deducted fees. Automatic renewal originated from the membership model, which was originally a "win-win model" that allowed consumers to obtain products and services at a lower price and increased user stickiness and stability for merchants. However, due to some malicious merchants always taking advantage of loopholes and setting traps, ignoring consumers' right to know and choose, it has resulted in a "lose lose situation" where consumers' interests are damaged and merchants' reputation is degraded. Instead of spending all their effort playing word games, businesses should improve the quality of their products and services and innovate their promotion methods. For example, promising to "automatically cancel renewals" for users who do not use the app for a long time, and offering higher discounts to true "loyal fans" who use the app for a long time. The business profit model is not fixed, only businesses that sincerely treat their users can gain stable and sustainable users. (New Society)

Edit:Xiong Dafei    Responsible editor:Li Xiang

Source:Economic Daily

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