Ed Tech Provider Chegg Fined $7.5 Million by FTC Over Cancellation Practices

The fine will be used to reimburse customers who were impacted by the company’s cancellation policies, the FTC said.
Ed Tech Provider Chegg Fined $7.5 Million by FTC Over Cancellation Practices
Textbook rental company Chegg.com demonstrates its site to students of the University of Texas at Caffe Medici in Austin, Texas, on Aug. 26, 2009. Sarah Kerver/Getty Images for Chegg.com
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An educational technology provider has agreed to pay a $7.5 million fine levied on Sept. 15 by the Federal Trade Commission (FTC) over allegations that it intentionally made it difficult for users to cancel their monthly subscriptions and ignored users’ cancellation requests.

The FTC said Chegg Inc. intentionally buried the cancellation process for subscription services behind multiple layers on its website for years. The Santa Clara, California-based company provides a range of academic help to high school and college students, such as online assistance with homework questions and tools to aid with writing assignments. It also rents out physical and digital copies of textbooks.
Rob Sabo
Rob Sabo
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Rob Sabo has worked as a business journalist for nearly two decades and covers a broad range of business topics for The Epoch Times.