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"Rebilling Rules"

Discussion in 'Making Money' started by UndeniableSpirit, Jul 10, 2009.

  1. UndeniableSpirit

    UndeniableSpirit Regular Member

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    Hey guys,

    I'm setting up a site that offers a free trial (a lot like all those acai berry trial systems) where I would be rebilling them the full price after a week.

    I was just wondering, is there any sort of "rebilling rules"?

    Or can I just say they get a 7 day free trial and hide the rebill as best I can in the terms? I want to remain as "covert" as possible but I also want to stay within the law.

    Any help would be greatly appreciated.
     
  2. TheStickiest

    TheStickiest Newbie

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    The FTC seems to be cracking down more and more on these things, but the rebill companies are obviously still going strong. Your best bet is to incorporate your business out of a country that is friendly with anonymous incorporations and do business like that.

    The best advise you will probably get here is to find some other people that are already operating these businesses and talk to them personally, because they probably arent hanging out on bhw (but I could be wrong).

    More than other operators though, this is a legal question that would be best suited for legalmen. I know a guy who owns a teeth whitener rebill, and it seems like a pretty good business if you set everything up right and don't feel bad about raping people's credit cards (of course how aggresively you bill them is your decision as the business owner).
     
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  3. UndeniableSpirit

    UndeniableSpirit Regular Member

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    Thanks a lot for the help man. Yeah I am located in Canada (own a corporation as well) but still need to do a lot more research.

    What type of law do you think this would pertain to? I know some lawyers but they are all criminal lawyers.

    What I am doing right now is studying the sales processes of other free trial products and seeing how they mention the rebill in their sales page and terms pages.

    The fact that I'm not selling any physical products helps a lot as well (I'm selling a type of service)

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    EDIT:

    I'm just on the FTC website right now. There is a really good PDF on what they do and don't allow for "hiding the details". Here is the link for anyone who cares:

    http://www.ftc.gov/bcp/edu/pubs/business/ecommerce/bus41.pdf
     
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    Last edited: Jul 10, 2009
  4. HTTP_REFERER

    HTTP_REFERER Newbie

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    Thanks a lot for that link. I'm also looking to start a rebill for an intangible item within the next few months and this will surely help.