Streaming in UAE? Cancelling Netflix, Prime Video may soon get harder

A US federal appeals court has halted a major consumer protection regulation that would have required streaming platforms to simplify their cancellation processes — a decision with potential ripple effects for viewers worldwide, including in the UAE.

What was the ‘click to cancel’ rule?

Proposed by the US Federal Trade Commission (FTC), the “click to cancel” rule aimed to make cancelling subscriptions on platforms like Netflix, Amazon Prime Video, Disney+, and HBO Max as easy as signing up.

The rule also sought greater transparency by ensuring users give clear consent before free trials convert into paid plans, and by requiring platforms to disclose when promotional prices would end.

The rule was set to take effect on July 14 as part of the Biden administration’s broader effort to simplify processes for consumers.

Why was the rule blocked?

A federal appeals court blocked the FTC's "click to cancel" rule because the agency failed to conduct a necessary economic impact analysis before enforcing it.

This procedural error led to the indefinite suspension of the regulation, meaning streaming services are no longer federally obligated to maintain easy cancellation options.

Despite this setback, the FTC continues its efforts against difficult cancellation practices. An ongoing trial against Amazon, expected next year, addresses allegations of intentionally complex Prime subscription cancellations.

This legal action highlights a broader trend: some platforms already utilise multi-step processes, as evidenced by a 2023 investigation that found canceling Amazon Prime Video required navigating multiple pages, clicks, and prompts.

Will the ruling impact UAE streaming viewers?

Although the court decision applies only in the US, it may influence streaming practices globally including in the UAE, where streaming usage is rapidly increasing.

Many UAE viewers subscribe to multiple platforms, making easy subscription management and cancellation essential for controlling entertainment costs.

Without regulatory oversight, streaming services could complicate cancellation processes by hiding options deep within apps or requiring phone calls, making it harder for users to opt out.

Why UAE consumers should pay attention

In the UAE’s competitive digital market, users expect simple, user-friendly subscription controls. The US court’s ruling underscores the ongoing clash between consumer convenience and corporate control, which could affect streaming flexibility worldwide.

As the UAE’s digital market grows, viewers should stay informed about their rights and platform policies to avoid unwanted charges or difficult cancellations.

Key points for UAE subscribers:

• Consumer flexibility: Easy cancellation helps manage monthly streaming expenses, while complicated processes risk locking users into unwanted services.

• Existing practices: Platforms like Amazon Prime Video already have complex cancellation procedures. UAE consumer laws promote clear terms, but enforcement varies and companies often follow their US headquarters’ lead.

• Regulatory gap: The UAE currently lacks specific “easy cancel” rules like the US “click to cancel” regulation. If cancellation processes become more difficult, local laws may take time to adapt, limiting consumer options.