Yesterday the FTC announced it is stopping a group of Skincare Marketers’ online sales because it was determined the “free trial offer” had recurring fees unknown to the consumer. Please be cognizant that all online skin care merchants will be closely watched by their merchant processing banks and processors/banks may not even consider underwriting this business model. Why?…not because they don’t want the business, it is simply because they cannot monitor each and every account to insure they are not using deceptive practices.
Here are some tips to avoid being “red flagged”.
- Clearly state what you are charging including all fees associated with your sale.
- Do not offer a free trial offer unless you mean it. “A free trial is a free trial.”
- Do not auto ship without consent (avoid the small print your customers cannot read).
- Have your customer “opt in” and charge upfront for your product and offer a money back guarantee.
- Answer the phone and be responsive to your customers.
- Ensure you have a personal relationship with your merchant processor and that they clearly understand your business model.
Unfortunately, there are a few unscrupulous online merchants who ruin it for the vast majority of reputable online merchants. Click here to read more.