mexican Congress Unanimously Approves Bill to Curb Predatory Subscription Practices
Mexico City – The Mexican Chamber of Deputies has overwhelmingly approved a new bill designed to protect consumers from the increasingly common practice of tough-to-cancel subscriptions for services like streaming, telecommunications, and entertainment. the legislation passed with a unanimous 438 votes in favor, spurred by a personal anecdote from Ricardo Monreal Ávila, coordinator of the Morena party deputies.
Monreal revealed he himself had fallen victim to these practices, detailing a frustrating experience attempting to cancel an entertainment subscription. He was required to appear in person – despite having initially signed up with a single click – and even after cancelling his credit card to avoid further charges, found himself listed on a credit bureau. “I am in a loan bureau, I must confess it with humility,” he stated to his colleagues.
The bill aims to address this imbalance by mandating that companies notify consumers at least five days before a subscription renewal, reinforcing the principle of informed consent and preventing surprise charges. Monreal emphasized the scale of the problem, stating that an estimated 62 million citizens are vulnerable to these abusive practices and struggle to terminate unwanted subscriptions. He highlighted the stark contrast between the ease of signing up for these services and the arduous process of cancellation.
While the bill enjoyed broad support, it wasn’t without a degree of political maneuvering. José Elías Lixa, coordinator of the National Action Party (PAN) deputies, used the prospect to demand greater consideration for proposals originating from his party.
Lixa also used his platform to raise concerns about excessive fees levied on debit and credit card users, and proposed further legislation to ban charges for checking bank balances, eliminate VAT on water bills, offer tax deductions for medical expenses and tuition, and sanction officials complicit with organized crime – a reference to the growing issue of “narcopolitics” in mexico.
The passage of this bill represents a significant win
