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The FTC is overhauling its “Negative Option Rule” for subscription-based businesses, introducing new requirements like the “click-to-cancel” feature, which could be enforced by March 2025.
These changes aim to make canceling subscriptions as easy as signing up, protecting consumers from unwanted charges on auto-renewals and trial-to-paid subscriptions.
Complying with the FTC’s Click-to-Cancel rule doesn’t mean losing customers. A smooth cancellation process can actually strengthen customer relationships.
Here are some tips:
- Ensure your billing and subscription systems are connected, so cancellations are processed immediately, meeting the FTC’s requirements for ease.
- Add a one-click cancellation button that’s as easy to use as the sign-up process. This helps maintain a positive customer experience, even when they choose to leave.
- Use the cancellation page to gather optional feedback. Asking why customers leave can offer insights for retention strategies.
- On the cancellation page, consider offering options like a subscription pause instead of outright cancellation. These choices encourage retention without adding complexity.
Check out Chief Marketer’s guide to learn more.
