If you’re an Apple customer, you’re probably already aware that your subscriptions to various apps and services on your Apple device auto-renew until the subscription plans’ prices change. In that scenario, you must explicitly enroll in the new plans using your Payments and Subscription options. Apple aims to rectify this issue with a new App Store regulation that will allow developers to auto-renew customer subscriptions without requiring them to opt-in to price adjustments. Learn more about this big shift by reading the information below.
Apple is Now Offering Auto-Renewable Subscriptions at a Higher Price
Apple has now formally brought out the capability to developers via a blog post that explains how it works. Instead of opting in for a price adjustment in a subscription plan manually, it will now be auto-renewed in the event of a price increase. According to Apple, this will protect users from having their services halted unintentionally owing to pricing changes in their subscription plans.
Developers must meet specific standards laid forth by the tech giant in order to be eligible for the new “auto-renewable subscription fee rise” function. For starters, subscription plan costs can only be increased once a year by developers. This is to prevent scammy and fraudulent apps from occasionally boosting their subscription plans by a penny or two.
Furthermore, in monthly and weekly price increases, the developers are not permitted to exceed $5, or 50% of the prior price. So, if a monthly subscription plan costs $10 and the developer raises the price to $15 (price increase = $5, or 50% of the prior price), the app qualifies for the auto-renewable subscription price increase. Users will have to explicitly opt in for the newly priced plan if the price is increased to $16.
Similarly, the maximum for annual membership plans is set at 50% of the prior price, or up to $50. In addition, the price increase must be “permissible by local law” and follow other App Store guidelines. Users will still have to opt-in for the subscription plan if the price increase is greater than 50%.
To recall, Techcrunch reported earlier this year that Apple was testing a new tool for developers that allows them to automatically renew users’ subscription plans, even if their current plans had increased in price. The article quoted developer Max Seelemann, who received an App Store notification for a Disney+ subscription price hike at the time.
Users will no longer have to manually go to their subscription settings to opt-in for a newly-priced subscription plan as a result of this change. Even if there is a price rise, their auto-renewable subscriptions for supported apps will continue to renew. Apple will tell users of their auto-renewed plans by “email, push alerts, and in-app messaging.”
However, considering the multiple limitations attached to this App Store update, we’re not sure if this is a positive development for users.
