- The FTC announced a settlement with Chegg Inc., resolving allegations that the education technology company used unlawful tactics to make it extremely difficult—and, in some cases, virtually impossible—for consumers to cancel auto-renewing subscriptions.
- According to the complaint, Chegg employed complex and confusing, multi-step cancellation processes and often failed to honor cancellation requests even when consumers managed to complete them.
- Under the proposed stipulated order, Chegg is required to create and maintain a simple, easy-to-use cancellation mechanism and pay $7.5 million. The payment will be used to refund consumers impacted by Chegg’s cancellation processes.
- This is not the first FTC enforcement action against Chegg. As we previously reported, in 2023, the agency finalized an order requiring the company to improve its data security practices after a breach exposed students’ data.