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In this episode of Fintech Confidentials Uncut, host Tedd Huff dives into a topic that every business in the subscription space needs to pay attention to: the FTC’s new Click-to-Cancel rule. Designed to make it easier for consumers to cancel subscriptions, this new regulation is a major development that could change the way businesses operate. Tedd is joined by legal expert Linda Goldstein from Baker Hostetler, Carl D’Agostino, CEO of Solvpath, and Jayare Charron, VP of Partnerships, to break down what this means for companies and how they can stay ahead of the changes.

Right from the start, the episode gets into why this rule is a game changer. The FTC is making it clear: if consumers can sign up for a subscription easily, they should be able to cancel it just as easily. No more difficult-to-find cancellation links or confusing processes. Linda Goldstein explains the core elements of the rule, which include banning misleading advertising, requiring clear billing disclosures, making sure consumers give explicit consent, and simplifying the cancellation process. This means that businesses can no longer rely on complex or hidden cancellation methods to keep customers locked in.

As Carl D’Agostino points out, businesses need to act fast to adjust to these new requirements. One of the big topics discussed is how businesses can use technology to adapt. Carl shares how Solvpath has developed solutions that make it easier for customers to manage their subscriptions through self-service options. These tools allow consumers to cancel or modify their subscriptions without needing to call or email, something that’s becoming more important as 75% of consumers under the age of 65 now expect self-service options. By adopting these technologies, businesses can not only comply with the new rule but also improve customer satisfaction.

The conversation moves on to the immediate steps businesses should take. Linda Goldstein stresses that non-compliance could lead to hefty fines—up to $50,000 per violation—so it’s critical for companies to get their systems in order. Businesses need to review how they advertise their subscriptions, how they get customer consent, and how easy they make it to cancel. But it’s not all doom and gloom; Jayare Charron suggests that companies who prioritize transparency and ease of use may actually see benefits in the long run. After all, keeping your existing customers happy is much more cost-effective than constantly trying to bring in new ones.

From there, the discussion naturally turns to how customer retention is key. Both Carl and Jayare emphasize that retaining a customer is far less expensive than acquiring a new one. For example, Carl talks about offering flexible subscription options, like allowing customers to pause or modify their billing cycles. This approach can help keep customers engaged even if they’re not ready to cancel completely. Jayare adds that being open and clear about your policies can build trust with your customers, which is essential for long-term success.

Looking ahead, Linda Goldstein notes that while there may be some legal challenges to the rule, businesses shouldn’t rely on that. The FTC is serious about enforcing these changes, and the penalties for non-compliance are severe. But companies that take a proactive approach—reviewing their advertising, cancellation processes, and customer interactions—can not only avoid fines but also strengthen their customer relationships. Carl D’Agostino shares how AI-driven platforms can help businesses stay compliant while enhancing the overall customer experience. By using data to predict when a customer might cancel, businesses can implement win-back strategies before losing them for good.

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The episode wraps up with Tedd Huff encouraging businesses to see these changes as an opportunity to improve how they serve their customers. While the Click-to-Cancel rule presents challenges, it also offers a chance for companies to build stronger relationships with their customers by being more transparent and offering better service. Businesses that invest in the right technology and customer retention strategies will be the ones that thrive in this new landscape.

If you’re involved in a subscription-based business, this episode is packed with insights that can help you navigate these changes. The FTC’s new rule is more than just a regulatory hurdle—it’s a chance to rethink how you interact with your customers. Whether you’re concerned about compliance, looking to reduce churn, or simply want to provide a better experience, the advice from Tedd Huff, Linda Goldstein, Carl D’Agostino, and Jayare Charron is invaluable. Don’t miss this chance to learn how to protect your business and turn these new regulations into a win for both you and your customers.

TLDR:

In this episode of Fintech Confidentials Uncut, 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.Don’t forget to like, share, and subscribe for more insights from industry leaders!

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Key Highlights:

New FTC Rules Demand Simple Cancellations

The FTC’s Click-to-Cancel rule is changing the way businesses manage subscriptions. It requires companies to make canceling a subscription just as easy as signing up. The rule is focused on eliminating confusing cancellation processes, making it clear that consumers shouldn’t have to jump through hoops to stop a service.

Massive Fines Ahead for Non-Compliant Businesses

Businesses failing to comply with the FTC’s Click-to-Cancel rule could face fines of up to $50,000 per violation. This isn’t just a warning—companies need to make sure their advertising, billing disclosures, and cancellation policies are fully transparent to avoid these costly penalties.

Why Self-Service Options Are Key for Subscription Success

Today’s consumers prefer handling their own subscriptions, especially through self-service options. This trend is more than just a convenience—businesses that offer these tools can lower customer frustration and reduce churn, while also meeting the FTC’s new compliance standards.

Proactive Adjustments Could Save Your Business

With the FTC’s new rule, businesses must take proactive steps to stay compliant. Companies should review their customer journey, from how they advertise subscription offers to how they handle cancellation requests. Early adjustments can help avoid penalties and ensure a smooth transition to the new standards.

Retention Beats Acquisition: The Smart Strategy

Focusing on keeping your existing customers is far cheaper than constantly trying to acquire new ones. The FTC’s Click-to-Cancel rule pushes businesses to improve retention by making the subscription process clear and cancellation easy. Smart companies are investing in flexible options to keep customers happy and engaged.

Building Trust with Transparent Billing

Under the FTC’s new rule, businesses must provide clear and honest billing disclosures for their subscriptions. This transparency isn’t just about following the law—it helps build long-term trust with customers. When customers fully understand what they’re being charged for, they are more likely to stick around.

Automation: The Secret Weapon for Compliance

As the FTC’s new Click-to-Cancel rule rolls out, businesses are turning to AI-driven tools like Solvpath to automate their customer service processes. Automation helps ensure that cancellations are handled smoothly while also allowing companies to track customer behavior and reduce churn effectively.

How Transparent Cancellation Policies Build Loyalty

Companies that make cancellation simple and transparent will likely see an increase in customer loyalty. The FTC’s new rule makes it mandatory for businesses to provide clear, upfront cancellation processes, and customers appreciate the ease and honesty, which can keep them coming back in the long term.

Data-Driven Strategies for Reducing Churn

By using data to track customer behavior, businesses can predict when a customer might be thinking about canceling a subscription. This allows companies to step in with personalized offers or flexible subscription options, reducing churn and boosting retention. The FTC’s Click-to-Cancel rule only emphasizes the need for these smart strategies.

The Future of Subscription Services Depends on Compliance

The future for subscription-based businesses is clear—those that comply with the FTC’s Click-to-Cancel rule will thrive, while those that don’t will face steep penalties and customer backlash. Transparent practices and a focus on customer satisfaction will be the key to staying ahead in this new landscape.

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Takeaways:

1️⃣ Make Cancellations Effortless to Stay Compliant

Businesses must ensure that canceling a subscription is as easy as signing up. Remove any confusing steps or hidden links in your cancellation process to comply with the FTC’s new Click-to-Cancel rule.

2️⃣ Stop Misleading Ads Before the FTC Hits You with Fines

Review all subscription-related advertising to avoid misleading claims. Clear up any confusion in your marketing materials about costs and terms to steer clear of $50,000 fines per violation.

3️⃣ Streamline Billing Disclosures for Consumer Trust

Ensure that your billing disclosures are upfront and easy to understand. Transparent billing not only keeps you compliant but also helps build trust and loyalty with your customers.

4️⃣ Implement Self-Serve Tools for Smooth Subscription Management

Add self-service portals that let customers manage their subscriptions independently. With these tools, you’ll reduce friction for customers and keep your business in line with FTC regulations.

5️⃣ Use Data to Prevent Cancellations Before They Happen

Leverage customer data to predict when a subscriber might cancel. Offering personalized retention options at key moments will reduce churn and keep more customers satisfied.

Links:

Linda A. GoldStein  

BakerHostetler

Carl D’Agostino

Jayare Charron

Solvpath

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About The Guest:

Linda A. Goldstein, Partner, BakerHostetler

Linda Goldstein is widely recognized as one of the leading advertising lawyers in the country. She regularly provides advertising counsel and regulatory advice to leading Fortune 500 and Fortune 100 companies in many different product and service categories, including telecommunications, wireless, retailing, publishing, entertainment, digital media, gaming, food and beverage and financial services. She represents clients in investigative and enforcement proceedings brought by the Federal Trade Commission, state attorneys general, district attorneys and other federal and state agencies with jurisdiction over advertising and marketing practices, and she has handled some of the highest-profile matters, setting industry precedents.

BakerHostetler

Established in 1916, BakerHostetler is one of the largest law firms in the U.S., with more than 1,000 lawyers and 17 offices across the country. We handle clients’ most critical legal matters – securing advantageous outcomes amid regulatory scrutiny and bet-the-company litigation; closing deals that fuel strategic growth; managing intellectual property and digital assets; and providing advice and counsel to facilitate long-term competitiveness.

Our attorneys represent companies across every industry, from market-leading global powerhouses to trailblazing startups, helping clients minimize risk and capitalize on opportunities that will strengthen and grow their businesses.

Carl D’Agostino

Carl D'Agostino is the founder and CEO of Solvpath, a pioneering customer support technology company that transforms how businesses engage with their customers. With over a decade of experience in e-commerce and digital marketing, Carl has developed innovative solutions that empower users to resolve inquiries efficiently. His journey began with a focus on lead generation and affiliate marketing, leading him to create successful e-commerce brands.

He is passionate about enhancing customer experiences and frequently shares his expertise through speaking engagements and mentorship. Join us as we explore Carl's journey and his vision

Jayare Charron

Jayare Charron is the VP of Partenrships and Sales at Solvpath a dynamic and creative, partnerships and business development expert and recording/ performing artist. I am always cognizant and focussed on the health and well-being of myself, as well as the people around him. He believes in sustainable practices, setting and crushing goals and always moving forward. His continual opportunities to learn and grow from the best in the world - people, cultures and places. His goal is to stimulate growth with all businesses I have the pleasure of working alongside.

Solvpath

Solvpath is an industry leader in automated visual customer support technology. Leveraging decades of sales funnel building experience, the platform provides customers with swift and intuitive support while simultaneously enhancing overall merchant performance. Through personalized branding and a user-friendly interface, Solvpath empowers businesses of all sizes to amplify customer retention, mitigate returns, all while drastically reducing costs and enhancing the customer experience.

About the Host:

Tedd Huff: 

Tedd Huff is the Founder of Voalyre, a professional services advisory firm focused on global payments and DD3 Media.

Over the past 24 years, he has contributed to FinTech startups as an Advisory Board Member, Co-Founder, and Chief Experience Officer, providing strategic and tactical direction for Global Payments OpenEdge, Heartland Payments, Nuvei, and TSYS, among others, focusing on growth while delivering innovation, process improvements and user experience-driven value to simplify the complexity of payments.

DD3, Media: 

DD3 Media is a media creation, management, and production company delivering engaging content globally

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