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 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, as they are 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.
These tactics, commonly referred to as “dark patterns”, are designed to delay or discourage cancellation.
A Southeast Asian survey found that 69% of Malaysian consumers are frustrated because they can’t pause or stop subscriptions when needed, while 41% admitted to still paying for services they had forgotten about. 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” such as gym or tuition packages, these do not extend to digital, auto-renewing, or monthly subscriptions.
Telecommunications contracts are another grey area. Under current practice, companies are permitted to set their 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. Currently, there is no standard policy requiring service providers to release customers without penalty in cases of unresolved service failures.
NCCC believes it is time for Malaysia to strengthen consumer protections in this space. We urge the relevant ministries and agencies to consider:
1. 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.
2. 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.
3. Regulation of Auto-Renewals: Require explicit, informed consent before any automatic renewal of a subscription. Reminders should be sent at least 7 days before renewal, allowing consumers to opt out easily.
4. Limits on Early Termination Penalties: For longer-term contracts (e.g. gym, broadband), establish reasonable limits on early exit fees, especially when consumers cancel due to poor service.
5. Guidelines Against Dark Patterns: Ban manipulative cancellation designs and require businesses to be transparent and fair in their subscription models.
6. 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. Let’s make it easier for Malaysians to manage their commitments, avoid financial loss, and participate in a digital economy that respects their rights.
Starting a subscription should take seconds, ending it should, too.
Saral James Maniam
Senior Manager of National Consumer Complaints Centre (NCCC)
