Cancellation friction and consumer protection in subscription markets

Purpose This paper aims to examine how firm-controlled cancellation barriers in digital subscription markets weaken consumers’ practical ability to exercise formal cancellation rights and create recurring-payment harm. Design/methodology/approach The paper purposively integrates transaction cost economics, behavioural economics, human-computer interaction and consumer protection, differentiates the construct from adjacent constructs by locus of causation and analytic level, derives five testable propositions and appraises evidence using domain proximity, identification strategy scale and outcome proximity. Findings Cancellation friction is argued to operate through exit-cost escalation and inertia exploitation, raising the risk of delayed or failed cancellation and unwanted spending. Direct subscription evidence is strongest for passive renewal defaults. Procedural friction is widely documented but lacks a dose-response estimate. Payment salience rests on adjacent-domain evidence, and the proposed perceived-control pathway remains untested. Practical implications The paper specifies a six-component entry-exit parity profile that can be coded from the consumer side, with a reporting rule, a worked example and stated reliability and validation requirements, and translates it into five design standards. The measure is proposed rather than validated. Originality/value Neither cancellation friction nor the principle that exit should be no harder than entry is new. The contribution is exit-capability erosion, defined as a reduction in a consumer’s practical capacity to complete a formally available cancellation, its integration with interface design and consumer harm in one testable model, and an operational measurement protocol.

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Publication Details

Journal
Digital Policy Regulation and Governance
Published
2026-09-30
DOI
https://doi.org/10.1108/dprg-07-2026-0481
Primary Topic
Digital Platforms and Economics
Type
article
Field-Weighted Citation Impact
0.00
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article

Cancellation friction and consumer protection in subscription markets

Rehab Daif, Lukasz Bikowski, Kruthik Jadhav, Khaled Elsayed
Digital Policy Regulation and Governance
Digital Platforms and Economics
article

Cancellation friction and consumer protection in subscription markets

Rehab Daif, Lukasz Bikowski, Kruthik Jadhav, Khaled Elsayed
article en

Abstract

Purpose This paper aims to examine how firm-controlled cancellation barriers in digital subscription markets weaken consumers’ practical ability to exercise formal cancellation rights and create recurring-payment harm. Design/methodology/approach The paper purposively integrates transaction cost economics, behavioural economics, human-computer interaction and consumer protection, differentiates the construct from adjacent constructs by locus of causation and analytic level, derives five testable propositions and appraises evidence using domain proximity, identification strategy scale and outcome proximity. Findings Cancellation friction is argued to operate through exit-cost escalation and inertia exploitation, raising the risk of delayed or failed cancellation and unwanted spending. Direct subscription evidence is strongest for passive renewal defaults. Procedural friction is widely documented but lacks a dose-response estimate. Payment salience rests on adjacent-domain evidence, and the proposed perceived-control pathway remains untested. Practical implications The paper specifies a six-component entry-exit parity profile that can be coded from the consumer side, with a reporting rule, a worked example and stated reliability and validation requirements, and translates it into five design standards. The measure is proposed rather than validated. Originality/value Neither cancellation friction nor the principle that exit should be no harder than entry is new. The contribution is exit-capability erosion, defined as a reduction in a consumer’s practical capacity to complete a formally available cancellation, its integration with interface design and consumer harm in one testable model, and an operational measurement protocol.

Digital Policy Regulation and Governance
The University of Melbourne (AU), University of Management and Technology (US), King Faisal University (SA), New York University (US), Victoria University (AU), Helwan University (EG)
Peace, Justice and strong institutions
Openalex Percentile: Top 8%
Digital Platforms and Economics
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