Key facts
- John Oliver discussed the prevalence of subscription services across various industries.
- He highlighted that consumers often pay more than they realize for subscriptions and may forget about them.
- Oliver criticized 'smart' appliances for collecting user data, citing examples like washing machines gathering information about new parents.
- He pointed out that companies use 'dark patterns,' deceptive design choices, to make signing up for subscriptions easy and cancelling difficult.
- Examples of companies using these tactics included Amazon, LA Fitness, and Hello Fresh.
- Oliver expressed disappointment that a proposed FTC 'click to cancel' rule was struck down by a US appeals court.
John Oliver, host of HBO's 'Last Week Tonight,' dedicated a segment of his show to the pervasive nature of subscription-based business models and the data collection practices of 'smart' appliances.
Oliver highlighted that subscriptions have become ubiquitous, often leading consumers to spend more than they anticipate, with many unknowingly paying for services they no longer use. He noted that while newspapers and magazines have long employed subscriptions, the internet has facilitated their expansion into nearly every aspect of life, from survival tools to appliance features.
He specifically criticized the trend of 'smart' appliances, such as baby monitors and cat litter boxes, charging subscription fees for continued functionality. Oliver also pointed to the automotive industry's embrace of this model, with companies like General Motors aiming for significant annual subscription revenue. He used HP's printer ink cartridges as an example of how companies can restrict access to purchased goods if subscription payments lapse.
"That's pretty annoying, isn't it?" Oliver remarked, questioning the ownership of ink that comes with a printer. He cited an HP CEO's statement that companies profit more from subscribed customers, underscoring the financial incentive behind the model.
Furthermore, Oliver expressed deep concern over data collection by smart appliances, including dishwashers and washing machines from companies like General Electric. He found it unsettling that corporations could gather intimate lifestyle details, such as welcoming a new child, through these devices. "No company needs to know I had a child," he stated, contrasting this with traditional birth announcements.
Oliver also detailed the challenges consumers face when trying to cancel subscriptions, often due to 'dark patterns'—deceptive design choices that manipulate users. He cited Amazon's past issues with the FTC over Prime subscription sign-ups, where a former employee described the process as deliberately confusing. Similarly, he mentioned LA Fitness's lengthy cancellation procedures and Hello Fresh's previously convoluted online process.
"Companies have gotten very good at making it incredibly easy to sign up for subscriptions by accident," Oliver observed, noting how bundled services can automatically convert to paid subscriptions after an initial period.
He advised viewers to regularly check their bank accounts and phone subscription tabs for unexpected recurring charges. Oliver concluded by expressing frustration that a proposed FTC rule aimed at simplifying subscription cancellations, the 'click to cancel' initiative, was struck down by a U.S. appeals court, leaving a "tantalizingly easy fix to a ubiquitous problem" out of reach.