The Future of Shopping: Trapping You in a Club You Didn’t Know You Joined

Nice way to create a higher artificial floor on lifetime value:

Regulators, meanwhile, are trying to keep up with potentially misleading subscriptions. The FTC tried to crack down on unfair negative-option practices as far back as 1973, requiring sellers to disclose all terms before customers subscribe. But that rule did not cover automatic renewals. Sixteen states now have statutes addressing the negative-option model. Congress also enacted the Restore Online Shoppers’ Confidence Act in 2010. Federal law prohibits negative-option subscriptions unless the company:

Source: The Future of Shopping: Trapping You in a Club You Didn’t Know You Joined

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