FTC continues to solicit comments on click-to-cancel button and other proposed revisions to its Negative Option Rule
We have all felt the frustration of having to jump through hoops to cancel a recurring monthly subscription. Fortunately, the FTC is in the process of potentially removing hurdles to canceling by updating its Negative Option Rule. The rule essentially says that if a consumer has not taken action to stop a subscription, that serves as consent for continued billing. Long overdue for a modern update, the 1973 law, when established, pertained mostly to relics like book-of-the-month and record-of-the-month clubs.
The FTC is accepting comments until June 23 with proposed changes including:
The regulations have the potential to benefit consumers, stamp out bad corporate practices and ultimately, increase the proliferation of subscription boxes as consumers gain confidence they will be able to cancel as they wish. I once subscribed to the CBS streaming service in order to watch a game and, after an arduous cancellation process, vowed never to watch CBS again. For CPG companies, added consumer confidence in subscription services could be a boon for grocery delivery and parcel carriers. The CPG items that are ideal for subscription services are bulky, consumable items that households do not want to run out of, such as dog food.
Pre-rolled cones are the new 6-pack for the canna-curious
On Monday’s The Stockout, I interviewed Bryan Gerber, CEO and co-founder of Hemper and HARA Brands, which produces and sells cannabis smoking accessories through retailers, directly to consumers, and through their flagship subscription boxes. Gerber also made a name for himself selling massive volumes of pre-rolled cones, a convenience item for newfound cannabis users, which he compares to grabbing a 6-pack of beer on the way home.
Among highlights that pertain to other CPGs looking to sell directly to consumer either a la carte or via subscription boxes:
See full interview here.
FreightWaves writers highlight demand pressure
In the past week, FreightWaves published two articles directly related to CPG. JP Hampstead described how freight brokers are seeing volume declines, even in the areas of food/beverage, and other CPG, which normally provide a stable source of volume for 3PLs. Plus, packaging expert Adam Josephson highlighted yet another source of transportation demand weakness — the idling of a major containerboard mill.
Here are a few takeaways from the articles:
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Editor: Michael Baudendistel