Heads Up, Membership Owners. Updates from the FTC
New FTC Rule on How Customers Can Cancel Subscriptions - This is a BIG One That Effects Millions… The FTC’s has a new “Click to Cancel” rule for companies that do recurring billing. Here’s what you need to know to stay compliant: Make Cancellation as Easy as Sign-Up: If customers signed up online, they must be able to cancel through the same channel with an equally simple process. No more multi-step barriers to exit. Aka they need to be able to cancel online. . . “Save” Offers with Consent: Businesses can present “save the sale” offers to retain customers only after asking if they’re open to hearing them. If the answer is “no,” cancellation must proceed immediately. . . Annual Renewal Reminders: This is big too. For subscriptions involving services (not physical products), companies are required to send annual reminders with key details - like the subscription cost and renewal date - giving customers a fair chance to cancel. . . Recordkeeping Requirements: This was surprising. Businesses must keep all records of the customer consenting and any attempts to “save the sale” for at least three years. . . You got till April, 180 days. Get your stuff in order! Posted by Kevin Laylor in another group. I assume Evelyn and Sam will become aware of these things and ensure a platform that supports compliance and safety for membership owners. Additional info here: https://www.ftc.gov/news-events/news/press-releases/2024/10/federal-trade-commission-announces-final-click-cancel-rule-making-it-easier-consumers-end-recurring More details will roll out as I come across it.