IN today’s digital economy, subscribing to a service takes only seconds but cancelling it can take hours, repeated calls, or in some cases, a change of credit card just to stop the charges.
The National Consumer Complaints Centre (NCCC) has received a growing number of complaints from Malaysian consumers who feel trapped in unwanted subscriptions, unable to cancel services without facing unnecessary delays, penalties or complicated processes.
From streaming platforms and online apps to gym memberships, telecom plans and prepaid service packages, consumers are reporting a pattern: signing up is simple but unsubscribing is frustratingly difficult.
These practices, whether designed intentionally or by inertia, unfairly tilt the marketplace in favour of businesses, often at the expense of consumer rights and financial well-being.
In many cases, consumers unknowingly commit to long-term contracts through “free trials” that automatically convert into paid plans.
Others face high exit penalties for trying to leave gym or telco contracts, even when the service no longer meets their needs.
Worse, some digital platforms bury the cancellation button deep within account settings or force users to call a hotline to quit a service they joined online. For example, a user from Negeri Sembilan shared their experience involving the closure of an account on behalf of a deceased family member.
“I submitted all the required documents to the pay-TV service provider on July 15. After three days, no one contacted me. I even went in person to their branch office in Seremban 2 but was told that there was no record of any account closure request in their system.
Instead, I was issued a new bill to pay, even though the original account had no outstanding balance.”
These tactics, commonly referred to as “dark patterns”, are designed to delay or discourage cancellation.
One consumer told us they were charged RM60 a month for nearly a year after a 10-day free trial ended, without any clear way to cancel online. Another user was charged nearly RM2,000 to exit a broadband plan early, despite poor service delivery.
These are not isolated cases. A Southeast Asian survey found that 69% of Malaysian consumers are frustrated that they cannot pause or stop subscriptions when needed while 41% admitted they were still paying for services they forgot they had. In short, many Malaysians are losing money on services they do not want, do not use or cannot easily cancel.
While Malaysia’s Consumer Protection Act 1999 (CPA) provides some safeguards, particularly for prepaid “future services” like gym or tuition packages, these do not extend clearly to digital, auto-renewing or monthly subscriptions.
For example, the CPA requires partial refunds if a consumer cancels a prepaid service contract but offers no clear protection for services billed monthly or those that auto-renew without explicit consent.
Telecommunications contracts are another grey area. Under current practice, companies are permitted to set their own penalties for early termination, with little room for negotiation. This puts consumers in a difficult position: either tolerate poor service or pay a hefty sum to escape.
There is currently no standard policy requiring service providers to release customers without penalty in cases of unresolved service failure.
Other countries have taken proactive steps to protect consumers from these challenges.
In the UK, the government introduced a Digital Markets and Consumers Bill that requires companies to send clear reminders before a subscription is renewed and mandates that cancelling a subscription must be “as easy as signing up”.
In simple terms, if you clicked once to subscribe, you should be able to click once to unsubscribe.
In Australia, consumer advocacy groups are calling for a new “unfair trading practices” law that would specifically target “subscription traps” and ban designs that deliberately make cancelling hard.
India has also updated its consumer guidelines to outlaw several manipulative online practices, including hard-to-cancel subscriptions.
These reforms are built on a simple but powerful principle: consumers should remain in control of their commitments. When cancelling a service becomes an obstacle course, it undermines that control.
At NCCC, we believe it is time for Malaysia to strengthen consumer protections in this space. Specifically, we urge the relevant ministries and agencies to consider:
A “click-to-cancel” requirement: Any service that allows online sign-up should also allow simple online cancellation, with no hidden steps, excessive confirmations or required phone calls.
A cooling-off period: Introduce a standard 14-day cooling-off period for all subscription contracts, especially those entered into online or by phone. This allows consumers to cancel without penalty if they change their mind or realise they were misled.
Regulation of auto-renewals: Require explicit, informed consent before any automatic renewal of a subscription. Reminders should be sent at least seven days before renewal, giving consumers the chance to
opt-out easily.
Limits on early termination penalties: For longer-term contracts, for example, gym and broadband, establish reasonable limits on early exit fees, especially when consumers cancel due to poor service.
Guidelines against dark patterns: Ban manipulative cancellation designs and require businesses to be transparent and fair in their subscription models.
Public awareness campaigns: Many consumers are unaware of their existing rights under the CPA, especially regarding refunds for unused prepaid services. Greater outreach and education are needed.
These steps are not radical. They reflect a growing global consensus that subscription-based services must be fair, transparent and respectful of consumer choice.
At a time when Malaysia is promoting digital adoption, innovation and e-commerce, ensuring fair digital practices is essential. If consumers feel trapped or tricked, they will lose confidence in the very tools meant to improve convenience and choice.
We believe that implementing fair cancellation practices is not just good policy; it is good business. Studies abroad show that companies with clear and easy cancellation policies enjoy higher consumer trust and return rates.
Let us make it easier for Malaysians to manage their commitments, avoid financial loss and participate in a digital economy that respects their rights.
We call on policymakers, regulators and industry leaders to take this issue seriously. It is time to say clearly: starting a subscription should take seconds and ending it should, too.
Saral James Maniam
Senior Manager
NCCC