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[Mike Young]

Some Internet marketers are engaging in illegal practices by hiding their forced continuity programs. This includes "FREE" or $1 offers with undisclosed billing to start in 30 or 60 days for a subscription the customer didn't know about.

Others improperly disclose the continuity programs by hiding them in fine print or even putting them on another page outside of the ordering process (such as one of many FAQs) where it is unlikely to ever be read prior to ordering.

Another favorite tactic is to include a trial of the continuity program as a "bonus" to the purchase of a front end product without clearly describing the subsequent monthly billing that will occur for that bonus.

One despicable marketer disclosed the continuity program but made it impossible to cancel the program until after the trial period had ended, at least one monthly billing had occurred, and the e-mail address and phone number for cancellation didn't work! You had to track down a real e-mail address elsewhere to cancel.

Although there are no bright line tests for legality/illegality, here are some best practices to consider when offering a continuity program.

1. Make it transparent. No weasel words. The customer shouldn't have to wonder exactly what is being purchased.

2. Include a description of how the continuity program works in multiple places in the sales process. Example: "After your 30-day trial period, you will be billed $19.95 monthly for Widget Newsletter until you cancel."

3. Make it easy to cancel at any time. If you've got a good product or service, the continuity program will stick.

4. Use the same size font (or bigger) to describe the continuity program as you do for the rest of the offer. No 8-point type hidden in white font on a white background.

5. Repeatedly inform your customer throughout the ordering process that there is a continuity program and the terms of it. Consider doing this 5 times in the process. For example:

   (a) Twice in body of the sales letter.
   (b) Once in a P.S. to the sales letter.
   (c) Once on the order page.
   (d) Once in the e-mail sent to the customer confirming the order.

If your offer is a good one, customers will buy and appreciate your honesty. If your offer is a bad one, you shouldn't be selling it in the first place using deceptive business practices.

If Internet marketers don't police themselves, the government is going to come in with draconian laws and regulations that will kill online marketing as we know it. Only big corporations will be able to play as they will be able to afford the teams of lawyers required to comply with the new rules.

Best wishes,

-Mike

[Rick Wilson]

Michael,

Some good stuff you've put out. Thanx!

Now about the continuity factor ...

What about something like at Joel's site at Adsense-Secrets.com . He mentions it in his Bonus #3 which is above the order box. It's the same font size as rest of sales page.

Fast Action Bonus #3  ($59 Value - Yours Free!)

FREE Trial Membership - You'll receive a free copy of the information packed newsletter on Internet marketing in the world, "The Top 1% Report"! You won't find any of this information on the Internet...it's too powerful. We'll ship it right to your door along with an additional bonus CD exclusive to my readers.

If after the free report you decide it's not worth ten times the subscription cost (which won't happen because you will be blown away by the content in this report!), simply contact us and cancel your subscription at any time! Otherwise, you may continue to be in the Top 1% for the discount rate of just $29.95 every 30 days. Wait until you see the bonus that comes with your first edition!

Is THAT still wrong or still in gray area?

Also,  find it odd that many that use the "forced continuity" never seem to include that in their TOS. I would thnk that would be a required thing to do. AT least some added C.Y.A. 


 

[Mike Young]

Rick,

Whether the example you provided would pass muster with the FTC or a state attorney general is something I won't speculate about because these issues are often decided on a case-by-case basis taking into account the text of the entire sales pitch and ordering process.

However, the better course of action would be multiple disclosures as described above in the original post.

Best wishes,

-Mike

[profitspublishing]

I was just reading a blog entry from Dr.  Mani on this subject (including the referenced salespage) which directed me to this excellent post.   I thought others might like to read Dr.  Mani's take on this for themselves.  If so you can find it at:

http://www.guydz.com/moneypowerwisdom/

He also included the FTC's take on it!  You can find the "official" government word on the subject here:

http://www.ftc.gov/bcp/edu/pubs/consumer/products/pro07.shtm

Smiles,
Marian

[Lisa Preston]

Hey, Marian -
Tony already published that in the Main Discussion area... along with the whole incident that led to this whole spotlight on continuity... at least this time.

[JohnWilliams]

Mike, they won't sign up if I tell them the dirty details up front! 

I think the same applies to the hidden subscriptions to ezines when people think they're just requesting some glittering freebie.

But, "everyone" does that so it must be alright.

Unfortunately, these tactics are fuel for more scare stories about "All Internet marketers are scammers" and the politicians and highly paid consultants who don't care who's right - they just want an issue which can get them some free publicity.

John Williams

[Mike Young]

I think the same applies to the hidden subscriptions to ezines when people think they're just requesting some glittering freebie. But, "everyone" does that so it must be alright.

John,

It IS very common for landing page opt-ins to not disclose that entering a name and e-mail address means a subscription to an autoresponder service. Instead, marketers just point out the bonus widget one will receive. There's a good case to be made that using the name and e-mail address for anything other than providing the disclosed widget violates the CAN SPAM Act because the person providing the information did not agree to it being used for any other purpose than to get the widget.

The safer course of action is to clearly disclose that the provision of a name and e-mail address means more than getting the widget, i.e. a subscription to a newsletter, ezine, important topic news and updates, etc.

-Mike

[Rick Wilson]

The safer course of action is to clearly disclose that the provision of a name and e-mail address means more than getting the widget, i.e. a subscription to a newsletter, ezine, important topic news and updates, etc.

Then maybe stop giving out free stuff for the addy and JUST ask for the email address. Just kidding, well kind of. 


 

[Chris Lockwood]

I guess you just have to assume that a certain percentage of people are stupid when it comes to these things.

[Mike Young]

Saw another deceptive continuity program today by an Internet marketer.
The continuity program was not identified anywhere in the sales letter. Instead, it was disclosed on the ordering form as a bonus below the area where the buyer enters payment information for the offer made in the sales letter.

This is not an accident. It is a scumbag tactic.

A continuity program that has to be hidden isn't worth getting in the first place.

I'm creating my own Internet marketer blacklist. Hidden and deceptive continuity programs are the easiest way to get put on the list. Those on it can never qualify to become a client even if referred by an existing client. I will also never recommend them to clients for doing business (JVs, affiliates, etc.).

What's particularly funny is that negative word-of-mouth costs blacklisted marketers more money because of lost opportunities than they make through deceptive business practices.

-Mike

[Ron08]

It is a shame that marketers are taking a good marketing stradegy and making it sleezy.

I've use forced continuty but I disclose it over and over and over, several times on sales page, on order forms, welcome emails and reminder emails later.

Occasionally someone will ask what the charge is later because they forget and I remind them almost never have a problem. 

In the very rare times I've have had a chargeback attempt I just send documentation of all the disclosers I make and I win 95% of the time.

Ron

[Chris Lockwood]

It's too bad the word "forced" became the standard term, since that sounds bad, since who wants to be forced to do something?

I've heard people say they are against forced continuity, then I ask them if they belong to any monthly membership sites or services like autoresponders which bill monthly, and they always say yes. Well, that is forced continuity as well... you get billed repeatedly until you cancel.

"Forced" really just means built in or not optional- sign up for the deal and that's what you get.

Hidden or deceptive ones are another issue.


> What's particularly funny is that negative word-of-mouth costs blacklisted marketers more money because of lost opportunities than they make through deceptive business practices.

I think you may be a bit naive there, as I see people continue to do business with people even AFTER knowing what bad stuff they've done. See my proof here:
http://ablakeforum.com/index.php/topic,888.0.html

Even big-time criminals find lawyers to represent them, so I'm not sure how you blacklisting them really hurts them- you can only handle so many clients anyway, right?

[Mike Young]

Even big-time criminals find lawyers to represent them, so I'm not sure how you blacklisting them really hurts them- you can only handle so many clients anyway, right?

Yes, I can only handle so many clients. That's why my practice is now referral-only. To even be considered, an existing client must personally refer a prospective client.

But that's not the entire point.

Negative WOM can be deadly because there are multiple blacklists involved (not just mine).

Let me give you an example...

At a seminar this past weekend, the name of a particular marketer came up in conversation. Four different bad experiences of dealing with this marketer were voluntarily shared between those in the conversation. Each story had a common theme of the marketer screwing over those he JV'd and his customers. 

Those sharing the stories and the group who heard them will not do business with this marketer.

If he did just a single joint venture with a few in the group, it would add a minimum of six figures to his revenues on the front end and seven on the back end. That will never happen. He's now shunned by multiple key players in Internet marketing.

-Mike

[Lisa Preston]

Gee, I wonder who you could POSSIBLY be talking about... LOL

Spread the word far and wide, my dear. The more people who hear these disturbingly familiar stories about that particular individual, the better.