Retention tactics are overused and they hurt user trust
Most companies started out with good intentions. Early subscription services offered real value, streamlining access to products and experiences. But over time, things got messy. Instead of keeping customers through quality, many businesses turned to manipulative tactics.
Hiding cancellation buttons deep in settings menus, sending guilt-inducing pop-ups like, “Are you sure? You’ll miss out on so much!”—these are not signs of innovation. They’re signs of desperation. These tactics focus too heavily on squeezing out every possible dollar from a frustrated user base.
Now we’re seeing the backlash. People are tired of being tricked or forced to stay in systems they’ve outgrown. The rise of services like Truebill, now Rocket Money, points out the absurdity of the situation. We’re subscribing to platforms to help us escape other subscriptions. That’s the level of frustration we’ve reached. It’s a glaring inefficiency in the marketplace.
What’s worse, this approach breaks trust with consumers. Trust is earned when customers feel respected, not manipulated. When consumers actively seek tools to audit and cancel subscriptions, they’re sending a clear message: “We want choice. We want control.”
For businesses clinging to these outdated methods, the writing is on the wall. Stop playing defense with aggressive retention tricks. Instead, focus on offering services so good, people want to stick around. Trust and loyalty aren’t built through traps—they’re built by respecting your audience’s intelligence and autonomy.
FTC’s “Click to Cancel” rule and its impact
The FTC’s “Click to Cancel” rule flips the board on manipulative subscription practices. It’s simple: if signing up takes one click, canceling should be just as easy. While many are saying this is a radical idea, it’s really just common sense. It’s an impactful rule for an industry that historically thrived on creating roadblocks for consumers.
Let’s break the rule down. Businesses are now required to offer a cancellation process that’s clear, online, and immediate. No more buried menus, no more “call us to confirm.” If your free trial is about to end, you must notify the user and get explicit consent to continue charging them. Deceptive retention tricks are also outlawed. That means no more pop-ups designed to guilt people into staying. It’s a much-needed correction in a marketplace where customer frustration has become the norm.
The pushback from big players—Amazon, Netflix, Disney—shows how much is at stake. They’ve filed lawsuits claiming the rule overreaches the FTC’s authority. As it seems though, the real fear isn’t regulatory overreach, it’s losing the ability to lock in customers.
This regulation is both a win for consumers and an opportunity for businesses to rebuild trust. It’s a reset button. Companies that commit to transparency and fair practices will stand out in a crowded market. This is the right moment to align with customer expectations. Give them freedom, and they’ll give you loyalty.
Ethical engagement is the future of customer loyalty
People want brands they can trust, not ones that prey on their vulnerabilities. Customers value simplicity, fairness, and respect. If you make it easy to engage with your product and even easier to leave, they’re more likely to stick around.
Design is a huge part of this. Interfaces should respect how people think and behave, not exploit cognitive blind spots. For example, instead of overwhelming users with flashy “last chance” deals, why not present clear, thoughtful options? Decision-making should feel empowering, not stressful.
The Center for Humane Technology has been vocal about this. Their insights stress that we need systems designed to protect users, not manipulate them. Misinformation, mental health issues, and burnout are real consequences of poorly considered product design. Companies that take these risks seriously will lead the way in fostering balanced, intentional user behavior.
Start by embedding ethical principles into business strategies
Forget short-term metrics. The best companies think long-term. That means putting ethical practices front and center. Customers aren’t numbers on a spreadsheet, they’re people. Treat them like it.
Start with transparency. Show users exactly what they’re getting and how to opt-out when they’re done. Make interfaces intuitive, don’t make them dig through endless menus just to find the unsubscribe button. It’s better for the user and shows you value their time and intelligence.
User interface design for subscription services after FTC ruling
Ethics also means addressing unintended consequences. Stress, burnout, and misinformation can emerge from poorly designed systems. For instance, constant notifications can create anxiety, while endless engagement loops leave users feeling drained. Recognizing and reducing these harms builds goodwill and trust.
Think about authenticity too. Relationships aren’t built through manipulation, they’re built through honesty and respect. Customers notice when brands prioritize profits over values. On the flip side, they reward companies that act with integrity.
The subscription economy at a tipping point
Subscription services began as a way to simplify life—think Netflix replacing Blockbuster or Spotify replacing CDs. The idea was brilliant: pay a small monthly fee for convenience and access. But somewhere along the way, things got complicated. Today, subscriptions have become a maze of overlapping services, hidden fees, and frustrating retention tricks.
It’s not only the consumers who feel trapped. Businesses are stuck too, locked in a cycle of trying to squeeze more from less. Malcolm Gladwell’s Revenge of the Tipping Point explains this perfectly. The same strategies that once drove growth now amplify disinformation, burnout, and exploitation. It’s a system teetering on the edge of collapse.
So, where do we go from here? Simplify. Focus on value. Make the process of subscribing—and unsubscribing—effortless. Customers shouldn’t need a third-party app like Rocket Money just to figure out what they’re paying for. If your product delivers real value, people will stay.
This is the reset moment for the subscription economy. Businesses that embrace simplicity and respect user autonomy will thrive. Those that cling to manipulative tactics? They’ll fall behind. The future belongs to companies that value trust over tricks.
