Legal Issues for Small Businesses

Legal Issues for Small Businesses

Got legal questions? Just starting up and don't know where to begin to protect yourself? Have your questions answered by Deena Burgess, Esq., our favorite resident lawyer who focuses her legal practice on helping online businesses with all of the legal issues that they need to face to protect themselves, their families and their business.

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    Top membership program musts

    Business Question - Started by Kristie Kang

    Hi Deena, I am launching a new 6 month membership program where clients receive monthly services (client choose from either a facial or massage) and a retail gift worth $50 dollars.   The clients will be charged...

    Discussion has 3 message(s) - updated on February 3, 2012
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  • Kristie Kang

    Hi Deena,

    I am launching a new 6 month membership program where clients receive monthly services (client choose from either a facial or massage) and a retail gift worth $50 dollars.   The clients will be charged automatically on their credit card every month for a select sum and if client do not cancel after 6 months, the program will continue.  If they cancel before the 6 months, they will be responsible for the full price of all their services as well as the $50 gift.  

    Are there disclamers and provisions critical to include to implement this? Is there any do's and don'ts when drafting membership guidelines?  Would appreciate any feedback!

    Thank you!

    Kristie


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    Kristie Kang

    Founder, Lotus Spa

    kristie@lotusspalife.com     http://www.lotusspalife.com

    People tagged in this message:
    Deena Fischer
    Posted by Kristie Kang on January 31, 2012 - 3:14pm
  • Deena Fischer

    Kristie,

    There are no short answers to this question.  All contracts have language that is important.  This is especially so with a negative option contract, which is what you're talking about.    

    Here are some guidelines from the Federal Trade Commission regarding negative option contracts for businesses: http://business.ftc.gov/documents/accentuate-positive-when-using-negative-option-marketing

    You have to be VERY clear.   I would suggest having an attorney help you with the contract in order to make sure that you're well within the law.  

    If you absolutely have to do it on your own, I would suggest looking at other negative option agreements and seeing how it was done.

    Hope that helps.  Let me know if you have any other questions.

    Deena


    ----------------------------------------------------------------------

    Deena Burgess, Esq.
    http://www.ebusinesslawgroup.com
    Offering Affordable Legal Solutions for Online Businesses
    Find me at Twitter and Linked In

    Personal Blog - Being Anonymous (http://www.beinganonymous.com)

    Posted by Deena Fischer on February 1, 2012 - 11:45am
  • Kristie Kang

    Hi Deena,

    Thank you for your feedback! I'm going to check out the link and other negative option contracts like you suggested. What would be the estimate for attorney fees to work on a contact like this?

    Best,

    Kristie


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    Kristie Kang

    Founder, Lotus Spa

    kristie@lotusspalife.com     http://www.lotusspalife.com

    Posted by Kristie Kang on February 3, 2012 - 4:16pm
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