📰 Easier to cancel

Author

The Report
March 23, 2023

Good morning! The FTC proposes new rules for consumer protection regarding free trials and subscriptions, the Fed raises interest rates despite the banking system's stress, and work travel has become more complicated.

BUSINESS

Making it Easier to Cancel

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The FTC has proposed rule changes that would apply to digital and physical subscriptions, allowing Americans to more easily cancel free trials and unwanted subscriptions across industries, including e-commerce, cable TV, and traditional print media.

Here's the breakdown:

  • Americans could more easily cancel free trials and subscriptions they no longer want, according to a proposed rule change by the US Federal Trade Commission (FTC).

  • The change would apply to digital and physical subscriptions across a wide range of sectors, from music distribution to pet care.

  • To prevent companies from using deceptive tactics to retain customers, they would be prohibited from doing so and would be required to provide the cancellation option using the same method utilized for sign-up.

  • The proposed regulations also include a variety of other requirements, such as asking consumers if they are open to retention offers and providing detailed information on subscription terms.

  • Companies found in violation of the rules could face fines of tens of thousands of dollars a day, and consumers could seek refunds.

ECONOMY

Continued Rate Hikes from The Fed

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In an attempt to curb high inflation, which is at its highest level in 40 years, the Federal Reserve increased interest rates by 0.25 percentage point, marking the ninth consecutive hike, with projections for only one more hike for the remainder of the year.

Here's the breakdown:

  • The Federal Reserve has raised its key short-term interest rate by a quarter percentage point, with one more rate hike this year now being forecasted, in order to cool inflation.

  • Following Silicon Valley Bank’s collapse, the Fed acknowledged that even the remaining quarter-point move it anticipates is not certain and could have more significant impacts than expected.

  • Fed officials estimate another quarter-point increase to a peak range of 5% to 5.25%, in line with its December estimate.

  • Although the US banking system is generally considered safe and stable, the recent banking events are expected to make it harder for consumers and businesses to borrow money, which could slow down the economy, reduce job growth, and increase inflation.

  • The Fed is still focused on reducing inflation, and it suggests that additional policy changes may be necessary to bring inflation down to the 2% target rate, indicating that the Fed is nearing the end of its rate-hike cycle.

BUSINESS

Business Travel Gets Pricey

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In the wake of pandemic-related travel disruptions and soaring airfares, companies are seeking to strike a balance between the expense of business travel and the resulting return on investment.

Here's the breakdown:

  • As airfare prices continue to surge, budget-conscious corporate travelers are adopting various measures to cut costs, such as opting for less popular flights, flying to alternate airports, and renting cars.

  • According to travel management companies, businesses are carefully evaluating the worth of each trip and implementing additional approval steps prior to ticketing.

  • To save money, some companies encourage travelers to cram more meetings into a single trip or add more parameters to their travel policies.

  • Large businesses often have deals with airlines that save them money in exchange for a certain volume of business.

  • Excessively restrictive travel policies may lead to the loss of high-performing employees to rival companies.

  • Some travelers are booking flights on airlines other than their preferred carrier to save money, even if it means giving up loyalty perks.

APPENDIX

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