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Malaysian Reserve
8 hours ago
- Automotive
- Malaysian Reserve
Consumer Watchdog's Statement On Initiative Filed To Repeal Prop 103'S Consumer Protections
LOS ANGELES, Aug. 12, 2025 /PRNewswire/ — Consumer Watchdog executive director Carmen Balber issued the following statement today: Proposition 103 has been a huge success for California policyholders, keeping insurance rates lower than national averages and holding insurance companies accountable for their actions. The law has saved drivers alone over $150 billion on their auto insurance rates since 1988, according to the Consumer Federation of America. Eliminating Prop 103's consumer protections, including public review and approval of insurance rates and an elected insurance commissioner, would mean skyrocketing rates for home and auto policyholders. We are evaluating the ballot measure recently filed by an insurance agent and see no sign of a serious campaign behind it or the millions that would be necessary to qualify it for the ballot. What we know is that consumers want more, not less, accountability from the insurance industry. Consumer Watchdog polling shows voters overwhelmingly support a plan to require insurance companies to cover all those who fireproof their homes, with 77% in support and 15% opposed – with broad support across gender, party, age, income, residence type and region. See the polling. National polls also show consumers overwhelmingly blame insurance companies for the insurance crisis. A March 2025 poll by Data for Progress and the Insurance Fairness Project found that respondents blame insurance executives for skyrocketing insurance rates, with 85% saying they were 'very' or 'somewhat responsible.' See the polling. Twice in recent history the insurance industry tried and failed to convince the voters to overturn provisions of Prop 103. Proposition 17 in 2010 and Proposition 33 in 2012, sponsored by Mercury Insurance, sought to eliminate Prop 103's prohibition on raising prices on poor drivers who have a break in their insurance coverage. The voters rejected both attempts to eliminate the law's consumer protections. What consumers need now is stronger enforcement of Prop 103's protections against price gouging and collusion, not a free pass to raise rates unaccountably.
Fast Company
24-07-2025
- Business
- Fast Company
Companies use this sneaky pricing trick to overcharge you. One lawmaker wants it banned
It's no secret companies are collecting data while consumers browse their sites. But some companies are doing more with the info than trying improve products or marketing efforts: They are adjusting prices for individual customers based on their personal data. This practice, known as 'surveillance pricing,' has become more common in recent years, with more companies embracing artificial intelligence as a tool to make real-time price changes for individual customers. However, a new bill aims to stop these companies in their tracks. Representative Greg Casar introduced the 'Stop AI Price Gouging and Wage Fixing Act of 2025' on July 23. While some states—such as California, Colorado, Georgia, and Illinois—have proposed similar bans, Casar's bill is the first at the federal level. 'Giant corporations should not be allowed to jack up your prices or lower your wages using data they got spying on you,' Casar said in a statement. 'Whether you know it or not, you may already be getting ripped off by corporations using your personal data to charge you more. This problem is only going to get worse, and Congress should act before this becomes a full blown crisis.' How surveillance pricing works Companies engaging in surveillance pricing use customer data taken from the cookies—text files containing data—or tracking pixels that continue to follow you after leaving their website, providing information on your online activity, preferences, location, and device. This data can then be analyzed by AI programs to help the companies determine a personalized price for their products or services. The ban would impact the pricing systems of numerous retailers that reportedly engage in the practice, from retailers that increase prices for pickup orders when you are close to a store, to rideshare apps that charge more when your phone battery is low. Similarly, Delta Airlines recently came under fire for plans to expand their use of AI-driven pricing. 'We've seen things like people's browsing history, device type, battery, location, and more, inform pricing that focuses on how much that individual might be willing to pay for something—preying on desperation rather than using fair market pricing,' Ben Winters, director of AI and data privacy at the Consumer Federation of America, told Fast Company. (The Consumer Federation of America is one of several consumer-interest organizations and advocacy groups that have endorsed the proposed bill, according to a statement by Casar's office.) One of the benefits of the bill, Winters says, is that it would 'draw clear lines in the sand prohibiting the use of AI systems' to apply data-driven pricing on consumers, and provide customers harmed by this practice the right to sue the company behind the AI-driven prices. 'Too few bills focused on AI and data abuse have this key feature,' Winters says. 'It's one of many reasons we support the bill.' The Federal Trade Commission would be the entity responsible for enforcing the ban against surveillance pricing, which would be treated as a violation of two existing FTC acts regarding 'unfair or deceptive acts or practices' and 'unfair methods of competition,' according to the proposed bill. Surveillance pricing may be more common than you think Last year, the Federal Trade Commission launched an investigation into surveillance pricing, hoping learn more about how companies were using personal data to change prices. The initial results, released in January, found that retailers were using everything from demographic and location information, to mouse movements and abandoned online shopping carts, to match prices to consumers. 'Retailers frequently use people's personal information to set targeted, tailored prices for goods and services—from a person's location and demographics, down to their mouse movements on a webpage,' FTC Chair Lina M. Khan said in a statement earlier this year. The new legislation would not impact higher prices that result from 'reasonable costs' the business takes on to serve different customers, or lower prices from discounts for teachers, veterans, seniors, students, or rewards program members. Lawmakers and advocates that support the bill suggest the ban could make a big difference for consumers struggling to find fair prices amid rising prices and economic uncertainty. 'The ability to compare prices, to rely on consistent prices, and to know why a price is being charged—this is what gives us the power to know if we are getting a fair deal,' Nidhi Hegde, executive director at the American Economic Liberties Project, said in a statement. 'Surveillance pricing destroys the social contract of the marketplace.'
Qatar Tribune
19-07-2025
- Business
- Qatar Tribune
Tech tip: ‘Click-to-cancel' is over, but there are other ways to unsubscribe
Agencies A 'click-to-cancel' rule, which would have made it easier for consumers to end unwanted subscriptions, has been blocked by a U.S., federal appeals court days before it was set to go into effect. But there are ways to end those subscriptions and memberships, even if they take some work. The rule would also have required companies to disclose when free trials and promotional offers would end and let customers cancel recurring subscriptions as easily as they started them. But even without the new federal guidance, here are some ways to stay on top of subscription and membership fees. Experts at the Consumer Federation of America recommend setting calendar reminders for whenever a free trial period ends, to alert yourself to cancel promotional offers before the real recurring costs kick in. The auto-enrollment process, in which the company does not remind the consumer via email that a trial is about to end and higher monthly payments will begin, was also at the heart of the FTC's rule. 'No subscription business model should be structured to profit from a gauntlet-style cancellation process,' said Erin Witte, Director of Consumer Protection for the Consumer Federation of America, in a statement on the click-to-cancel rule. Regularly reviewing your credit card and debit card bills can also help you keep track of any recurring charges — including price increases you may have missed or that you didn't anticipate when trying out a new membership or subscription. 'Companies make it easy for consumers to click to sign up and easy for the companies to automatically withdraw funds from consumers' accounts,' said Shennan Kavanagh, Director of Litigation at the National Consumer Law Center (NCLC) in a statement on the FTC's click-to-cancel rule. 'People should not (have to) spend months trying to cancel unwanted subscriptions.' Given the FTC's vacated rule, though, companies may still legally require that customers cancel memberships or subscriptions by phone, even as they permit signing up, enrolling, and paying bills online. Consumer advocates say this places an extra burden of time and energy on the consumer to stop an unwanted recurring fee, but sometimes knowing the terms of the subscription and getting on the phone is worth the trouble. Apps like Rocket Money and services like Trim, which is accessed through a browser, can keep track of your recurring monthly fees and subscriptions, for free — or for a fee — and can help you catch new ones or even unsubscribe from some services. For parents, especially, a service like Trim could help inform them that a child has started a new subscription, game or membership before the fees recur. And Rocket Money will actively work to end unwanted subscriptions for you, for a monthly price. If the company can't successfully end or cancel the subscription or membership, it will give the customer the information needed to do so. Trim also provides this service, in its premium form, for an additional fee. The FTC is currently moving forward with preparations for a trial involving Amazon's Prime program, which accuses the retailer of enrolling consumers in its Prime program without their consent and making it difficult to cancel subscriptions. Often, when a consumer tries to cancel a subscription for something like Prime, which offers free delivery and streaming video, the company will offer a month or more of the subscription at a promotional rate — half off, or at other, better-seeming values, to entice a customer to stay. Staying strong in the face of what may appear to be a good deal can help you stop recurring monthly fees before you forget to cancel them again. Agreeing to yet another trial or promotional rate, which is another on-ramp to auto-enrollment, just continues the cycle, according to consumer advocates. The FTC's rule would have required businesses to obtain a customer's consent before charging for memberships, auto-renewals and programs linked to free trials. The businesses would have also had to disclose when free trials and promotional offers would end. The U.S. Court of Appeals for the Eighth Circuit said this week that the FTC made a procedural error by failing to come up with a preliminary regulatory analysis, which is required for rules whose annual impact on the U.S. economy is more than $100 million. The FTC said that it did not have to come up with a preliminary regulatory analysis because it initially determined that the rule's impact on the national economy would be less than $100 million. An administrative law judge decided that the economic impact would be more than the $100 million threshold, and the court decided to vacate the rule. Former President Joe Biden's administration had included the FTC's proposal as part of its 'Time is Money' initiative, which aimed to crack down on consumer-related hassles.
Japan Today
18-07-2025
- Business
- Japan Today
Tech tip: 'Click-to-cancel' is over, but there are other ways to unsubscribe
FILE - The logos for streaming services Netflix, Hulu, Disney Plus and Sling TV are pictured on a remote control on Aug. 13, 2020, in Portland, Ore. (AP Photo/Jenny Kane, File) By CORA LEWIS A 'click-to-cancel' rule, which would have made it easier for consumers to end unwanted subscriptions, has been blocked by a U.S., federal appeals court days before it was set to go into effect. But there are ways to end those subscriptions and memberships, even if they take some work. The rule would also have required companies to disclose when free trials and promotional offers would end and let customers cancel recurring subscriptions as easily as they started them. But even without the new federal guidance, here are some ways to stay on top of subscription and membership fees. Experts at the Consumer Federation of America recommend setting calendar reminders for whenever a free trial period ends, to alert yourself to cancel promotional offers before the real recurring costs kick in. The auto-enrollment process, in which the company does not remind the consumer via email that a trial is about to end and higher monthly payments will begin, was also at the heart of the FTC's rule. 'No subscription business model should be structured to profit from a gauntlet-style cancellation process," said Erin Witte, Director of Consumer Protection for the Consumer Federation of America, in a statement on the click-to-cancel rule. Regularly reviewing your credit card and debit card bills can also help you keep track of any recurring charges — including price increases you may have missed or that you didn't anticipate when trying out a new membership or subscription. 'Companies make it easy for consumers to click to sign up and easy for the companies to automatically withdraw funds from consumers' accounts,' said Shennan Kavanagh, Director of Litigation at the National Consumer Law Center (NCLC) in a statement on the FTC's click-to-cancel rule. 'People should not (have to) spend months trying to cancel unwanted subscriptions.' Given the FTC's vacated rule, though, companies may still legally require that customers cancel memberships or subscriptions by phone, even as they permit signing up, enrolling, and paying bills online. Consumer advocates say this places an extra burden of time and energy on the consumer to stop an unwanted recurring fee, but sometimes knowing the terms of the subscription and getting on the phone is worth the trouble. Apps like Rocket Money and services like Trim, which is accessed through a browser, can keep track of your recurring monthly fees and subscriptions, for free — or for a fee — and can help you catch new ones or even unsubscribe from some services. For parents, especially, a service like Trim could help inform them that a child has started a new subscription, game or membership before the fees recur. And Rocket Money will actively work to end unwanted subscriptions for you, for a monthly price. If the company can't successfully end or cancel the subscription or membership, it will give the customer the information needed to do so. Trim also provides this service, in its premium form, for an additional fee. The FTC is currently moving forward with preparations for a trial involving Amazon's Prime program, which accuses the retailer of enrolling consumers in its Prime program without their consent and making it difficult to cancel subscriptions. Often, when a consumer tries to cancel a subscription for something like Prime, which offers free delivery and streaming video, the company will offer a month or more of the subscription at a promotional rate — half off, or at other, better-seeming values, to entice a customer to stay. Staying strong in the face of what may appear to be a good deal can help you stop recurring monthly fees before you forget to cancel them again. Agreeing to yet another trial or promotional rate, which is another on-ramp to auto-enrollment, just continues the cycle, according to consumer advocates. The FTC's rule would have required businesses to obtain a customer's consent before charging for memberships, auto-renewals and programs linked to free trials. The businesses would have also had to disclose when free trials and promotional offers would end. The U.S. Court of Appeals for the Eighth Circuit said this week that the FTC made a procedural error by failing to come up with a preliminary regulatory analysis, which is required for rules whose annual impact on the U.S. economy is more than $100 million. The FTC said that it did not have to come up with a preliminary regulatory analysis because it initially determined that the rule's impact on the national economy would be less than $100 million. An administrative law judge decided that the economic impact would be more than the $100 million threshold, and the court decided to vacate the rule. Former President Joe Biden's administration had included the FTC's proposal as part of its 'Time is Money' initiative, which aimed to crack down on consumer-related hassles. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Los Angeles Times
18-07-2025
- Business
- Los Angeles Times
‘Click-to-cancel' is over, but there are other ways to unsubscribe
A 'click-to-cancel' rule, which would have made it easier for consumers to end unwanted subscriptions, has been blocked by a federal appeals court days before it was set to go into effect. But there are ways to end those subscriptions and memberships, even if they take some work. The rule would also have required companies to disclose when free trials and promotional offers would end and let customers cancel recurring subscriptions as easily as they started them. But even without the new federal guidance, here are some ways to stay on top of subscription and membership fees. Experts at the Consumer Federation of America recommend setting calendar reminders for whenever a free trial period ends, to alert yourself to cancel promotional offers before the real recurring costs kick in. The auto-enrollment process, in which the company does not remind the consumer via email that a trial is about to end and higher monthly payments will begin, was also at the heart of the FTC's rule. 'No subscription business model should be structured to profit from a gauntlet-style cancellation process,' said Erin Witte, Director of Consumer Protection for the Consumer Federation of America, in a statement on the click-to-cancel rule. Regularly reviewing your credit card and debit card bills can also help you keep track of any recurring charges — including price increases you may have missed or that you didn't anticipate when trying out a new membership or subscription. 'Companies make it easy for consumers to click to sign up and easy for the companies to automatically withdraw funds from consumers' accounts,' said Shennan Kavanagh, Director of Litigation at the National Consumer Law Center (NCLC) in a statement on the FTC's click-to-cancel rule. 'People should not (have to) spend months trying to cancel unwanted subscriptions.' Given the FTC's vacated rule, though, companies may still legally require that customers cancel memberships or subscriptions by phone, even as they permit signing up, enrolling, and paying bills online. Consumer advocates say this places an extra burden of time and energy on the consumer to stop an unwanted recurring fee, but sometimes knowing the terms of the subscription and getting on the phone is worth the trouble. Apps like Rocket Money and services like Trim, which is accessed through a browser, can keep track of your recurring monthly fees and subscriptions, for free — or for a fee — and can help you catch new ones or even unsubscribe from some services. For parents, especially, a service like Trim could help inform them that a child has started a new subscription, game or membership before the fees recur. And Rocket Money will actively work to end unwanted subscriptions for you, for a monthly price. If the company can't successfully end or cancel the subscription or membership, it will give the customer the information needed to do so. Trim also provides this service, in its premium form, for an additional fee. The FTC is currently moving forward with preparations for a trial involving Amazon's Prime program, which accuses the retailer of enrolling consumers in its Prime program without their consent and making it difficult to cancel subscriptions. Often, when a consumer tries to cancel a subscription for something like Prime, which offers free delivery and streaming video, the company will offer a month or more of the subscription at a promotional rate — half off, or at other, better-seeming values, to entice a customer to stay. Staying strong in the face of what may appear to be a good deal can help you stop recurring monthly fees before you forget to cancel them again. Agreeing to yet another trial or promotional rate, which is another on-ramp to auto-enrollment, just continues the cycle, according to consumer advocates. The FTC's rule would have required businesses to obtain a customer's consent before charging for memberships, auto-renewals and programs linked to free trials. The businesses would have also had to disclose when free trials and promotional offers would end. The U.S. Court of Appeals for the Eighth Circuit said this week that the FTC made a procedural error by failing to come up with a preliminary regulatory analysis, which is required for rules whose annual impact on the U.S. economy is more than $100 million. The FTC said that it did not have to come up with a preliminary regulatory analysis because it initially determined that the rule's impact on the national economy would be less than $100 million. An administrative law judge decided that the economic impact would be more than the $100 million threshold, and the court decided to vacate the rule. Former President Joe Biden's administration had included the FTC's proposal as part of its 'Time is Money' initiative, which aimed to crack down on consumer-related hassles. Lewis writes for the Associated Press.
