The Shanghai Consumer Council has criticized auto-renewal practices across 70 mobile apps and 30 short-video platforms, highlighting significant shortcomings. According to Chinese media outlet IThome, the investigation uncovered that many apps failed to transparently disclose renewal pricing or notify users adequately before subscriptions were automatically renewed. For instance, Weibo’s payment interface lacked clear renewal prices, and Xiaoxiang Supermarket bypassed detailed user consent by combining service agreements and payment steps. Evernote was also flagged for failing to notify users of renewal dates via any channel.
The council’s findings also emphasized challenges in canceling subscriptions. While 47.1% of apps allowed users to cancel directly within the app, 48.6% required navigating external payment channels, adding unnecessary complexity to the process. These issues contravene the guidelines of the Consumer Protection Law, updated on July 1, which aim to safeguard user rights in the digital economy.
To address these concerns, the council recommended that apps improve transparency by clearly displaying renewal pricing and employing multiple methods to notify users of impending renewals. Additionally, it called for simplifying subscription cancellation processes to enhance user convenience and compliance with legal standards.
These practices underscore the need for companies to prioritize consumer trust and usability in subscription models. As digital services increasingly rely on recurring payments, ensuring fair, transparent, and user-friendly practices is essential to fostering long-term user satisfaction and loyalty.