Cancellation form was too hard to find and consumers were ignored when they tried to quit, FTC charges
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FTC says Chegg buried its cancellation process and ignored requests to stop billing
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Nearly 200,000 consumers were charged after canceling, according to the complaint
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Settlement provides $7.5 million in refunds and requires easier cancellations
Chegg, a "study solutions" companywill be required to pay $7.5 million to refund customers who were charged for subscriptions even after they tried to cancel. The Federal Trade Commission alleges the education technology company used confusing and unlawful practices that made it nearly impossible for students and parents to stop recurring charges.
According to the FTC, Chegg continued billing nearly 200,000 consumers after cancellation requests since October 2020. The cancellation process was buried on its websites, required multiple clicks to find, and was so cumbersome that many people gave up. Despite consumer complaints and its own awareness that the process was flawed Chegg did not improve access to the cancellation link.
FTC: canceling must be simple
It harms the American people when companies fail to provide simple mechanisms to cancel recurring charges, said Christopher Mufarrige, director of the FTCs Bureau of Consumer Protection. He said the agency is stepping up enforcement of the Restore Online Shoppers Confidence Act, which requires clear disclosures, informed consent, and straightforward cancellation options.
This is not Cheggs first run-in with the FTC. In 2022, the company agreed to improve data security and purge unnecessary personal information after its weak safeguards exposed sensitive information about millions of consumers and employees.
Refunds and reforms ahead
Under the new proposed order, Chegg must not only provide refunds but also maintain simple, visible cancellation mechanisms across all its subscription services. The settlement was filed in federal court in California following a unanimous 3-0 vote by the Commission.
How to claim a refund
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The $7.5 million settlement will be distributed to consumers who were improperly charged.
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Refunds will be handled by the FTC once the court approves the settlement.
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Consumers do not need to take action yet the FTC will contact eligible individuals directly by email or mail with instructions.
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Updates will be posted on the FTCs official refund page: ftc.gov/refunds.
Posted: 2025-09-16 12:58:29