The FTC's Shocking New Rule You Need to Know NOW - Businesses face massive fines if cancellation processes aren’t streamlined.

Fintech Confidential

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In this episode of Uncut by Fintech Confidential, host Tedd Huff discusses the FTC’s new Click-to-Cancel rule with legal expert Linda Goldstein (Baker Hostetler), Carl D’Agostino (CEO, Solvpath), and Jayare Charron (VP of Partnerships). This new rule, aimed at simplifying subscription cancellations, requires businesses to offer easy, transparent processes for consumers to opt out of services. The conversation covers the four key components of the rule: prohibiting misleading ads, ensuring clear billing disclosures, obtaining consumer consent, and simplifying cancellations.

The guests explain how businesses can adapt by implementing self-service tools, improving customer retention, and avoiding the hefty fines associated with non-compliance (up to $50,000 per violation). They also highlight the importance of using AI-driven platforms like Solvpath to enhance customer experience while staying compliant.

This episode is a must-listen for any subscription-based business looking to stay ahead of FTC regulations, reduce churn, and improve customer satisfaction.

Key Highlights

- New FTC Rules Demand Simple Cancellations

- Massive Fines Ahead for Non-Compliant Businesses

- Why Self-Service Options Are Key for Subscription Success

- Proactive Adjustments Could Save Your Business

- Retention Beats Acquisition: The Smart Strategy

- Building Trust with Transparent Billing

- Automation: The Secret Weapon for Compliance

- How Transparent Cancellation Policies Build Loyalty

- Data-Driven Strategies for Reducing Churn

- The Future of Subscription Services Depends on Complianc

Takeaways

1️⃣ Make Cancellations Effortless to Stay Compliant

2️⃣ Stop Misleading Ads Before the FTC Hits You with Fines

3️⃣ Streamline Billing Disclosures for Consumer Trust

4️⃣ Implement Self-Serve Tools for Smooth Subscription Management

5️⃣ Use Data to Prevent Cancellations Before They Happen

04:08 FTC's New Click to Cancel Rule

05:33 Legal Implications of the New Rule

05:47 Industry Experts Weigh In

07:04 Core Tenets of the FTC Rule

11:19 Changes from Proposal to Final Rule

15:42 Effective Dates and Business Adjustments

16:42 Impact on Subscription Businesses

17:10 Solvpath's Role in Adapting to Changes

21:10 Data-Driven Approaches to Reduce Churn

22:28 Challenges and Compliance Strategies

33:54 In-Person and Telephone Sales Compliance

42:56 Final Thoughts and Recommendations

43:43 Pre-Canned Solutions for Easy Compliance

43:58 The Benefits of Easy Cancellation

44:40 Understanding the Full Billing Cycle

45:11 FTC's Perspective on Cancellation

47:13 Post-Sale Strategies for Customer Retention

48:53 The Importance of Compliance

49:41 Challenges for New Advertisers

50:14 The Role of Self-Serve Automation

50:32 Impact of New Regulations on Advertisers

58:41 Long-Term Perspective on Compliance

59:57 Future Expectations in the Marketplace

01:11:10 Aligning with Card Brand Rules

01:18:51 Final Thoughts and Positive Takeaways

Links:

Solvpath: https:getsolvpath.com/

Bakerhsosltetler: https://www.bakerlaw.com/

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