Chegg Inc has agreed to pay $7.5 million to settle U.S. Federal Trade Commission claims that the educational technology company made it difficult to cancel subscriptions, according to court papers filed in San Jose, California on Monday.
A Chegg spokesperson said the company disagrees with the FTC’s claims but settled to avoid prolonged litigation.
Chegg buried cancellation options behind multiple menus on its website, according to the FTC complaint.
The FTC cited internal emails showing that Chegg staff knew the process was difficult and confusing, including a 2021 email from Nathan Schultz, who is now Chegg’s chief executive, saying there “should be some pain involved” in cancellation.
