Cosmin Ene’s Post

The FTC's "Click to Cancel" rule aims to enhance consumer transparency and ease in e-commerce by simplifying the cancellation of subscription services. Targeting "negative option marketing," where businesses auto-renew services without explicit user consent, the rule requires cancellation processes to be as straightforward as signing up, ideally allowing for a one-click cancellation. It mandates full disclosure and explicit permission before billing customers, addressing consumer rights and reducing deceptive practices. Part of a broader regulatory effort, the rule takes effect in 180 days, reflecting increased scrutiny of tech by the Biden administration. Read More: https://lnkd.in/edn3edw6 #ClickToCancel #ConsumerRights #FTCRulings #EcommerceTransparency #TechPolicyUpdates

FTC's Click to Cancel Rule In this CMSWire article, Scott Clark dives into the FTC's new rule designed to make it easier for consumers to cancel subscriptions and increase transparency. He dives into implications for businesses, like revising tech and processes to make it as easy for consumers to cancel as it is to sign up. As a consumer, I'm all for making things clearer and easier. And while some businesses will face some operational and cultural challenges to comply, as Scott mentions, it's a good opportunity to build consumer trust and loyalty. I'm interested in hearing people's thoughts on this, especially on the business side. If you have a subscription-based business, what will this new ruling mean for you? Here's the article: https://bit.ly/4g3fhdO

The New FTC Click-to-Cancel Rule Will Change the Game. In fact, it’s about to reshape commerce as a whole. The shift from company control to consumer control has been building for decades. Columbia House was one of the first major players to push the limits, enticing consumers with its “CDs for a penny” offer. Customers were unknowingly signed up to receive additional albums—at full price—indefinitely. Columbia House wasn’t the lone bad actor. The direct response industry, particularly in the weight loss space, took full advantage of similar deceptive tactics. Remember Acai berry? 🍓 Consumers signed up for “free trials” only to be roped into recurring shipments. Companies like Fabletics have also been criticized for making it difficult for customers to cancel their monthly subscription memberships. These businesses thrived on these practices until the FTC began cracking down. Negative option billing—where consumers are charged unless they opt out—isn’t inherently illegal. In fact, many mainstream industries, from insurance and financial services to digital music subscriptions and beyond rely on the model. But the issue has always been transparency and control over cancellations. This is where the FTC’s 2024 Click-to-Cancel rule comes into play. As of October 16, 2024, the Federal Trade Commission has made it mandatory for businesses to ensure canceling a subscription is just as easy as signing up. The days of deliberately complicated cancellation processes are over. This marks a shift toward consumer empowerment. Businesses with strong value propositions will benefit from deeper trust and increased loyalty. But those who rely on aggressive retention tactics are about to see churn rates skyrocket. Who’s impacted? 🔹 Digital subscriptions: (Adobe, Salesforce) 🔹 Streaming services (Netflix, Spotify). 🔹 All SAAS companies (Salesforce, Shopify) 🔹 Physical goods subscriptions (HelloFresh, Birchbox) 🔹 Gyms, professional associations, 🔹 Financial services and telecom providers. No recurring revenue-based business is exempt, whether you’re a startup or a global enterprise. Compliance isn’t optional. What to do? → Audit your current cancellation policy.  → Simplify your cancellation processes.  → Train your CS, retention team.  → Leverage automation, tools. → Make your billing terms clear. Consumer trust is now your greatest asset. Simplifying cancellations not only shows transparency, it also signals confidence in your offering. Customers who trust you are more likely to stay on board. This is just the beginning. More regulation will follow. Businesses that focus on quality customer experiences will see these challenges as opportunities. Those that don’t? They’ll be dead within 2 years. We’re about to see a major shakeout of subpar subscription players. #subscriptioneconomy ----- 📌 I help companies master subscription commerce. For info on our courses, community, and more go here 👉 https://lnkd.in/e7St_YeT

In today's digital world, subscriptions have become a common part of our lives. From streaming services and fitness apps to meal kits and software tools, subscriptions offer us convenience at the click of a button. However, while signing up is usually simple, canceling these services has often proven frustratingly complex—leading to what's sometimes called "subscription trap" tactics. To combat this, the Federal Trade Commission (FTC) has introduced a new "Click to Cancel" rule, making it easier for consumers to end recurring subscriptions without hassle. WHAT IS THE FTC'S "CLICK TO CANCEL" RULE? In essence, the "Click to Cancel" rule requires companies to streamline their subscription cancellation process to match the ease of signing up. Introduced in March 2023, this rule mandates that businesses selling subscription-based services online must provide a simple, straightforward way for consumers to cancel their services in the same manner they used to sign up. Key components of the rule include: - Easy Cancellation: If customers can sign up online, they must also be able to cancel online without going through additional steps like calling customer service or filling out excessive forms. - Clear Communication: Companies must disclose key details about the service and any recurring charges upfront. If any material changes occur, such as price hikes or updated terms, businesses must notify customers and allow them to cancel before the changes take effect. - Consent for Add-Ons: When presenting offers or "upsells" during the cancellation process, businesses must obtain explicit consumer consent, avoiding any automatic renewals for additional services The "Click to Cancel" rule is a wake-up call for companies to review their cancellation practices and ensure compliance. While the rule may require businesses to adjust their existing systems, its benefits include increased consumer trust, reduced chargeback disputes, and a potential reduction in negative reviews related to subscription cancellation practices. Non-compliance can lead to hefty fines and penalties. The FTC has made it clear that it will prioritize enforcement, setting a high standard for consumer protection in the digital marketplace. To learn more about the rule and required compliance, visit www.lawgroup.biz/blog. We specialize in helping companies navigate regulatory changes like the new "Click to Cancel" rule, ensuring your operations stay legally compliant and consumer-friendly. To contact our team, visit https://lnkd.in/eg5r8eKY #FTC #ClicktoCancel #businesstips

In today's digital world, subscriptions have become a common part of our lives. From streaming services and fitness apps to meal kits and software tools, subscriptions offer us convenience at the click of a button. However, while signing up is usually simple, canceling these services has often proven frustratingly complex—leading to what's sometimes called "subscription trap" tactics. To combat this, the Federal Trade Commission (FTC) has introduced a new "Click to Cancel" rule, making it easier for consumers to end recurring subscriptions without hassle. WHAT IS THE FTC'S "CLICK TO CANCEL" RULE? In essence, the "Click to Cancel" rule requires companies to streamline their subscription cancellation process to match the ease of signing up. Introduced in March 2023, this rule mandates that businesses selling subscription-based services online must provide a simple, straightforward way for consumers to cancel their services in the same manner they used to sign up. Key components of the rule include: - Easy Cancellation: If customers can sign up online, they must also be able to cancel online without going through additional steps like calling customer service or filling out excessive forms. - Clear Communication: Companies must disclose key details about the service and any recurring charges upfront. If any material changes occur, such as price hikes or updated terms, businesses must notify customers and allow them to cancel before the changes take effect. - Consent for Add-Ons: When presenting offers or "upsells" during the cancellation process, businesses must obtain explicit consumer consent, avoiding any automatic renewals for additional services The "Click to Cancel" rule is a wake-up call for companies to review their cancellation practices and ensure compliance. While the rule may require businesses to adjust their existing systems, its benefits include increased consumer trust, reduced chargeback disputes, and a potential reduction in negative reviews related to subscription cancellation practices. Non-compliance can lead to hefty fines and penalties. The FTC has made it clear that it will prioritize enforcement, setting a high standard for consumer protection in the digital marketplace. To learn more about the rule and required compliance, visit www.lawgroup.biz/blog. We specialize in helping companies navigate regulatory changes like the new "Click to Cancel" rule, ensuring your operations stay legally compliant and consumer-friendly. To contact our team, visit https://lnkd.in/esBmuxcE #FTC #ClicktoCancel #businesstips

The FTC’s final click-to-cancel rule announced today will impact recurring and subscription payment services so become familiar with it fast! In six months or so it will be too late. I’ll first say this as unpopular it may be, but the changes we are seeing from regulators are mostly a direct result of poor behavior from the industry. Lock-in, delays and just plain non existent consumer engagement amongst many many other bad behaviors are why we see regulators finally taking strong measures like this. Change your ways if you are a service that locks in your customers - looking at you Duolingo - if you need help to change your 30 day lock-in for customers who weren’t even subscribed to your service, just post below and we will help you fix that. By this time next year the law would be compelling these changes and the backlash to those services still transgressing will be severe. Times are changing fast, find a payment partner that can help you survive the changes and prospur! https://lnkd.in/dWdUhDuR

Australia and the UK take note! ------------------------------------- "US 'click to cancel' rule to ban subscription traps". The US Federal Trade Commission (FTC) has adopted a click to cancel' rule, which aims to make it easier for people to end subscriptions. It will force companies to make subscription sign-ups and cancellations equally straightforward. Businesses, including retailers and gyms, will also have to get consent from customers before renewing subscriptions or converting free trials into paid memberships. The new rule is due to come into effect in around six months' time.

🚨Say Goodbye to Sneaky Charges: FTC Announces "Click to Cancel" Initiative🚨 𝗧𝗵𝗲 𝗙𝗲𝗱𝗲𝗿𝗮𝗹 𝗧𝗿𝗮𝗱𝗲 𝗖𝗼𝗺𝗺𝗶𝘀𝘀𝗶𝗼𝗻 has officially rolled out the Click to Cancel rule, making it simpler than ever for consumers to end recurring subscriptions and avoid those pesky charges that can sneak up on all of us! 🛠️ What does this mean? Businesses will need to make cancellations as easy as sign-ups—no more jumping through hoops! This step strengthens consumer rights and sets a new standard for transparency and control over subscription services. 💬 Interested? Here’s the full story and how it impacts both businesses and consumers ➡️ FTC Announcement https://lnkd.in/en2zD9YT) #ConsumerProtection #ClickToCancel #FTCrules Contact us below to see how we can develop a web 3.0 solution that is right for you. #LeadGeneration #HealthTech #MarketingStrategy #Didgebridge #Intellismart Like and Follow these posts for more valuable tips and updates! Learn more visit: https://didgebridge.com Text: Intellismart To: 855.426.7770 𝘉𝘺 𝘵𝘦𝘹𝘵𝘪𝘯𝘨 𝘵𝘩𝘦 𝘬𝘦𝘺𝘸𝘰𝘳𝘥 𝘺𝘰𝘶 𝘢𝘳𝘦 𝘤𝘰𝘯𝘴𝘦𝘯𝘵𝘪𝘯𝘨 𝘵𝘰 𝘳𝘦𝘤𝘦𝘪𝘷𝘦 𝘚𝘔𝘚 𝘵𝘦𝘹𝘵𝘴 𝘧𝘳𝘰𝘮 𝘋𝘪𝘥𝘨𝘦𝘣𝘳𝘪𝘥𝘨𝘦 𝘢𝘯𝘥 𝘶𝘯𝘥𝘦𝘳𝘴𝘵𝘢𝘯𝘥 𝘺𝘰𝘶 𝘢𝘳𝘦 𝘫𝘰𝘪𝘯𝘪𝘯𝘨 𝘢 𝘴𝘶𝘣𝘴𝘤𝘳𝘪𝘱𝘵𝘪𝘰𝘯 𝘣𝘢𝘴𝘦𝘥 𝘴𝘦𝘳𝘷𝘪𝘤𝘦. 𝘞𝘦 𝘥𝘰 𝘯𝘰𝘵 𝘴𝘩𝘢𝘳𝘦 𝘰𝘳 𝘴𝘦𝘭𝘭 𝘺𝘰𝘶𝘳 𝘥𝘢𝘵𝘢 𝘵𝘰 𝘵𝘩𝘪𝘳𝘥 𝘱𝘢𝘳𝘵𝘪𝘦𝘴. 𝘙𝘦𝘱𝘭𝘺 𝘚𝘵𝘰𝘱 𝘵𝘰 𝘰𝘱𝘵-𝘰𝘶𝘵.

Ever have to jump through hoops to cancel that unwanted subscription? You won't have to much longer as the FTC just announced a new "click-to-cancel" rule. Great for consumers and we'll see some changes in the near future for brands and businesses. Here's a rundown of this new legal framework: 1. Prohibits the misrepresentation of any material facts when marketing goods or services with a negative option feature. 2. Requires clear and conspicuous disclosure of material terms before collecting a consumer’s billing information. 3. Mandates that sellers obtain express informed consent from consumers prior to any charges related to negative options. 4. Ensures a straightforward mechanism for consumers to cancel negative options and stop any ongoing charges. They also issued a fact sheet for easy reference and you can check out the article for full details on this new ruling. #marketing #clicktocancel #ftc https://lnkd.in/efXVypNU

The Digital Markets, Competition, and Consumer (DMCC) Act 2024 introduced new regulations for subscription contracts, including how you manage subscription cancellation. With Salable, you can effortlessly manage and cancel user subscriptions directly from the Salable dashboard.