Chegg Inc. (NYSE:CHGG) is facing legal action from the Federal Trade Commission, which alleges that the educational technology company has not provided subscribers with an easy way to stop recurring payments.
The lawsuit targets Chegg’s billing and subscription management practices, including the procedures available for users wishing to cancel their services.
“For years, Defendant has failed to provide subscribers a simple mechanism to cancel recurring charges. Even after consumers managed to navigate Chegg’s lengthy cancellation processes and believe they have successfully cancelled their subscriptions, in many instances, Chegg continues to charge them,” the FTC stated in its complaint.
The case focuses on Chegg’s adherence to consumer protection rules for subscription-based services and the company’s responsibility to make cancellation straightforward for users.
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