Dush Ramachandran, ClickBank vice president of sales and business development, says clarity is key.

“If you are engaged in a practice in which goods or services are provided automatically, and the customer must either pay for the service or specifically decline it in advance of billing, you must be very clear and upfront about it,” he said. “This type of practice is not unethical unless buyers do not fully understand the terms or sellers do not accept the consumer’s decision to discontinue the service or return the product.”

Ramachandran said the need for transparency and a willingness to accept cancellations also hold true for offers with confusing terms or delayed charges. “Credit card companies are no longer going to support merchants engaging in ‘free’ offers that are not actually free.”

Finally, he said, customers must receive goods or services in exchange for a credit card payment and, for any offer, must provide an affirmative consent such as a mandatory “I agree” statement checkbox where the customer acknowledges the terms and conditions of the offer and consents to be entered into a continuity program.

“At ClickBank, we’ve found that the best way to avoid compliance issues and keep our client’s continuity programs up and running without interruption is to be completely transparent with consumers regarding the terms of continuity programs.”

Take a look at these related posts:

1. New Affiliate Marketing Today Podcast: Membership Site Success with Ryan Lee
2. ClickBank Executive Dush Ramachandran on Affiliate Boards
3. Goal for the Year: Achieve Status with ClickBank