FTC Continues Crackdown On Subscription Businesses

The Bottom Line

• The FTC is scrutinizing subscription funnels on a holistic, end-to-end basis, evaluating everything from upfront advertising, quizzes, personalization claims, pricing displays, and payment overlays to post-purchase upsells and cancellation flows.
• The use of words such as “trial price,” “total due today,” and “$X only” can be problematic – even if technically true – if the material terms of a recurring subscription are not presented equally prominently and conspicuously.
• End-of-funnel disclosures, even if they make all material terms of the subscription clear at the moment consumers decide to pay, may not be a get-out-of-jail-free card if earlier messaging suggests a one-time or otherwise nominal purchase price.