On a recent episode of his HBO show, John Oliver addressed the growing prevalence of subscription-based business models, which now extend beyond traditional media to encompass a wide array of products and services, including beauty, food, and cleaning.
Oliver noted that many consumers are unaware of the full extent of their subscription spending. A recent report indicated that Americans pay twice their estimated amount in monthly subscriptions, with approximately half still paying for forgotten or unused services.
The host highlighted how the internet has facilitated the application of subscription models to nearly everything. This includes 'smart' appliances, from baby alarm clocks to cat litter boxes, which often demand a subscription fee for ongoing functionality. The automotive industry also heavily utilises this model, with some services costing up to $75 per month.
Oliver also discussed how companies like HP can disable printer ink cartridges if subscription fees are not maintained. He added that 'smart' household appliances, such as dishwashers and washing machines, enable companies like General Electric to collect data on customer lifestyles and habits.
Cancelling these subscriptions can be difficult, with some consumers unknowingly signing up through bundles or 'dark patterns' – deceptive design choices that manipulate users. Oliver cited Amazon's 2023 scrutiny by the Federal Trade Commission over alleged use of dark patterns for Prime sign-ups, and LA Fitness facing FTC review for its lengthy cancellation process.
Oliver advised viewers to regularly check their bank accounts and phone subscription tabs for unexpected recurring charges.