Have you ever tried to cancel a subscription online and found it way more difficult than signing up? We've all been there, and it can be frustrating. The Federal Trade Commission (FTC) is stepping in with a new rule called the Click to Cancel Rule intended to require a simpler cancellation process, which was introduced in January and will be enforced starting May 14th.
How Does the Click to Cancel Rule Apply to Parking?
In simple terms, this rule ensures that parking customers can cancel their paid parking agreements just as easily as they signed up. This is particularly relevant for recurring billing systems and apps that automate parking payments. Let's dive into what this rule means, why it's important, and how it could impact your parking operations.
Making Cancellation a Breeze
The rule is straightforward: businesses must provide a simple, clear, and easy-to-find cancellation mechanism. Think about it—can your customers register and cancel permits online with ease? If not, it's time to make some changes.
Transparency is Key
Before obtaining billing and payment details, businesses must clearly inform consumers about:
In addition, businesses cannot misrepresent any material facts related to the transaction.
The Cost of Non-Compliance
Failing to comply with the Click to Cancel Rule by May 14th, 2025, can result in significant fines and other costs. For more details, check out the FTC’s website.
There can also be indirect costs associated with frustrated customers that can include customer service time assisting them in canceling their recurring charges or the impact, over time, of a negative brand experience.
Looking Ahead: How to Ensure You’re in Compliance
Review your customer experience and verify the process available to your customers meets the requirements of the Click to Cancel Rule. If you do not meet all of the requirements, work with your permit management system vendor to adjust the customer process to meet these new regulations. Permit management systems, such as Zephire, are designed to comply with the Click to Cancel Rule.
Contact us today to learn how Zephire can help you stay compliant and streamline your parking operations.