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FTC Statement on Subscriptions: What Businesses Need to Know

FTC Statement on Subscriptions: What Businesses Need to Know

Chargebacks911® COO Monica Eaton-Cardone's New Guest Feature for Forbes

In a recent guest feature for Forbes, Chargebacks911 COO Monica Eaton-Cardone shared mounting concerns over the fast-growing subscription service economy.

Forbes is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. Forbes also reports on related subjects such as technology, communications, science, politics, and law.

In response to ‘a rising number of complaints about the financial harms caused by deceptive sign-up tactics’, the Federal Trade Commission has issued a statement announcing its intention to escalate enforcement efforts against shady subscription models. 

Eaton-Cardone details the FTC’s efforts to curtail exploitative billing practices that target ongoing billing cycles that are impossible to cancel. In this article, she outlines the statement’s main points, and how merchants are expected to respond to them.

“The FTC is not joking around with this enforcement notice. In fact, they've already brought numerous cases against merchants to challenge a variety of subscription practices that they describe as illegal,” writes Monica. She reminds merchants to be wary of any business practices that might be less than clear, advising them to, “provide more detailed transaction receipts, and explicitly designate trial subscriptions for which card information is held on file as a ‘free trial’ on cardholder statements.”