The FTC is raising the bar.
Uber is the latest company to come under scrutiny.
The FTC is investigating complaints about Uber One, citing allegations of unauthorized enrolments and obstructive cancellation practices.
This isn’t just about one company—it’s a wake-up call for every subscription business.
Starting October 2024, the Click-to-Cancel Rule mandates that canceling a subscription must be as simple as signing up.
Businesses that rely on friction and confusion to retain customers are on borrowed time.
Here’s what every subscription and membership business needs to understand:
1. The FTC is serious about enforcement.
Amazon and Adobe have already faced lawsuits. Uber’s inquiry is the latest in a growing list of cases targeting non-compliant practices. The days of “hiding the ball” are numbered.
2. Transparency is your best strategy.
Retention tactics rooted in value, not barriers, will define the leaders of this new era. Customers expect clarity, fairness, and control—and they’re getting regulators to back them up.
No recurring revenue-based business is exempt. From startups to global enterprises, compliance is no longer optional.
What to do:
→ Audit your current cancellation policy.
→ Simplify your cancellation processes.
→ Train your customer service teams.
→ Leverage automation to ensure compliance.
→ Make your billing terms unmistakably clear.
Regulations are catching up to consumer expectations.
The businesses that adapt will see better retention.
Those that don’t will see an increase in churn – and fines.
