What You Need to Know Now: The FTC's New "Click-to-Cancel" Rule

Who knew that talking cancellation law with the Cancellation Experts could be so fun? 

Baird Hall (Co-Founder, Churnkey), Nick Fogle (Founder & CEO of Churnkey), and Scott Hurff (Co-founder & Chief Product Officer at Churnkey) unravel the nuances of the FTC's new 'Click-to-Cancel' rule, designed to simplify subscription cancellations.

We'll explore its implications for businesses and consumers, emphasizing the need for clarity in subscription agreements and compliance challenges. Jump into the differences between state and federal regulations, we'll walk you through why a clear, concise, and honest cancellation process is best for creating happy customers.

Don't miss out on what you need to do to prepare for this new rule.

Here's what we cover:

• FTC's New Rule:
  The 'Click to Cancel' rule mandates that subscription services must provide an easy and straightforward cancellation process, making it as simple as signing up for the service.
• Business Impact:
  Companies must redesign their cancellation workflows to ensure they are user-friendly, which could involve updating technology and processes to comply with the new regulations.
• Compliance Challenges:
  Businesses with outdated or complex systems may struggle to meet the new requirements, potentially leading to customer frustration and non-compliance penalties.
• Consumer Protection:
  The rule modernizes the "negative option" concept, enhancing consumer rights by ensuring clearer communication around billing and cancellation terms.
• State vs. Federal Regulations:
  Variations between state-specific rules and the new federal regulation could create compliance complexities, requiring businesses to navigate differing requirements across jurisdictions.
• Customer Retention:
  A smooth and transparent cancellation process not only fosters customer trust but can also encourage loyalty, as satisfied customers are more likely to return.
• Preparation Needed:
  Businesses should proactively assess and improve their cancellation processes now to ensure compliance with the upcoming rule, positioning themselves to enhance customer experience and satisfaction.

About Nick Fogle:

Nick is a lawyer turned SaaS Founder and software engineer who works all across the stack. He pioneered the Churnkey prototype to help one of his SaaS companies vanquish churn and reach $140k+ in MRR. When founding Casa with Scott, he co-authored the Wealth Security Protocol and built an industry-leading Bitcoin security application. Ping him on Twitter if you ever want to nerd out about personal finance, investments, or Bitcoin.

About Scott Hurff:

Scott is a veteran product maker and designer. He was on the founding team of Tinder’s first acquisition, where he created some of the app’s most successful early revenue features. He was on the founding team of Casa, the world’s first consumer-friendly Bitcoin self-custody provider. O’Reilly published his book, Designing Products People Love, which Scott Berkun called “a thoughtful and charming guidebook for making great things.”