The Federal Trade Commission (FTC) - One Click Cancel how Zenler is handling this

David Author

Oct 18, 2024 |

FTC proposes changes to its Negative Option Rule, aiming to simplify cancellations, enhance transparency, and protect consumers from misleading info.

As a course creator or membership site owner, it's crucial to stay informed about the proposed changes to the FTC's Negative Option Rule. 

Here's what you need to know and how to adapt your practices, we also include a full workshop addressing lots of the issues below as well have code you can implement to satisfy the new ruling in the FTC!

Watch the Video on how to go above and beyond these new rules with Zenler

This video breaks down all the things you might want to do to be compliment with the new rules being introduced, including the following:

1. Introduction to how you can handle the FTC regulations
2. Introducing clear messaging on the Pricing page
3. Additional Clear messaging on the sales page
4. Having renewal reminders with clear links to the cancel account area
5. Adding a direct link to the subscription area of each student/member
6. Adding a statement inside the GDPR bar linking to the cancel account page
7. A complete block design showing a step-by-step cancellation of the subscription
8. An Actual Users experience a walkthrough

Implementation of some or all of these will help you maximise the FTC Rules for one-click cancellation.

Watch the Video if you want to implement any of these

The Federal Trade Commission (FTC) is proposing amendments to its Negative Option Rule that will significantly impact subscription-based businesses, including online courses and membership sites.

Key proposals include:

1. Making cancellation as easy as sign-up
2. Providing clear information about subscriptions
3. Ensuring consumer consent
4. Simplifying the cancellation process

See the FTC Handout Sheet for a quick overview

Actionable Steps for Compliance

Simplify Cancellation

• Implement a "click to cancel" option that matches the ease of signing up.
• If customers can subscribe online, ensure they can cancel online with the same number of steps.

Enhance Transparency

• Clearly disclose all terms of subscriptions or payment plans before sign-up.
• Avoid misrepresentations about the nature of the offer.

Obtain Explicit Consent

• Ensure customers understand and agree to what they're purchasing.
• Use clear language and prominent placement for consent forms.

Streamline Cancellation Process

• Remove obstacles to cancellation, such as long wait times or in-person requirements.
• For online sign-ups, provide an online cancellation method.

Implement Reminders

• For non-physical goods (like digital courses), send annual reminders before automatic renewals.

Handle Upsells Carefully

• When a customer attempts to cancel, ask permission before offering additional products or modifications.
• Respect the customer's decision if they decline additional offers.

Best Practices for Course Creators and Membership Sites

1. Review Current Practices: Audit your subscription and payment processes to identify areas that need improvement.
2. Update Terms of Service: Ensure your terms clearly explain subscription details, billing frequency, and cancellation procedures.
3. Redesign User Interface: Make cancellation options prominent and easily accessible on your website or app.
4. Train Customer Service: Educate your team on the new requirements and empower them to process cancellations efficiently.
5. Implement Confirmation Emails: Send clear confirmation emails for subscriptions, renewals, and cancellations.
6. Regular Audits: Conduct periodic reviews of your subscription management system to ensure ongoing compliance.

By proactively adapting to these proposed changes, course creators and membership site owners can build trust with their customers while staying compliant with evolving regulations.

Regulationa Site
Federal Trade Commission Proposes Rule Provision Making it Easier for Consumers to “Click to Cancel” Recurring Subscriptions and Memberships

How is Zenler addressing these Issues?

Zenler, as a platform for course creators and membership site owners, is taking proactive steps to address the proposed FTC Negative Option Rule changes. Here's how Zenler is adapting its features and practices to help course creators comply with the new regulations:

Simplified Cancellation Process

Zenler has implemented a "3 click to cancel" (account > Biiling > Cancel) feature that allows students to cancel their subscriptions or memberships as easily as they signed up. 

This ensures that course creators using Zenler can offer a cancellation process that is:

• Accessible directly from the student dashboard
• Completed in the same number of steps as the sign-up process
• Available online for courses that were purchased online

Enhanced Transparency

To help course creators provide clear information about subscriptions and payment plans, Zenler has updated its:

• Checkout pages to prominently display all subscription terms as per video.
• Email notification system to send clear confirmation emails for subscriptions, renewals, and cancellations

Consent Mechanisms

Zenler has improved its consent capture process by:

• Placing consent checkboxes more prominently during the checkout process

Of course, Zenler will implement even more changes if necessary.

Streamlined Cancellation Workflow

The platform now offers:

• A dedicated cancellation page accessible from the student's account
• Removal of unnecessary steps or obstacles in the cancellation process see video

Automated Reminders

For digital courses and memberships, Zenler has introduced:

• An annual reminder system that automatically notifies students before their subscriptions renew

By implementing these features, Zenler is helping course creators and membership site owners adapt to the proposed FTC rules while maintaining a positive user experience for their students.

Future Developement

Zenler will  also be adding and enhancing features to provide even easier methods going forwards!

Categories: : Zenler Website/Development