Module 4
Ads, Data & Billing
Don't trick people into subscribing or giving up data.
Digital marketing does not end at the click. Subscription terms, cancellation flows, consent for messages, children's privacy, and data promises are all regulated. Dark patterns — design tricks that push users into choices they do not want — are a growing enforcement target.
Key rules
- Negative-option billing must be clearly disclosed before payment, with simple cancellation.
- Email marketing needs consent and a working unsubscribe link.
- SMS marketing needs express written consent; replies must be honored.
- Do not collect children's data without verifiable parental consent under COPPA.
- Privacy policies must be accurate and match what you actually do.
Do this, not that
Free trials
Clearly state the full price, billing frequency, and cancel method before the user pays.
Hide the recurring charge in tiny print behind a 'Start free trial' button.
Why: Consumers must understand what they are agreeing to pay.
Cancellation
Make canceling as easy as signing up, with the same number of steps.
Force users to call, chat, or click through six screens to stop a subscription.
Why: The FTC's click-to-cancel rule requires cancellation to be simple.
Hidden fees
Show all mandatory fees on the first pricing screen.
Add surprise service, processing, or convenience fees at checkout.
Why: Unexpected fees increase the real price and deceive consumers.
Email consent
Only email people who opted in, and honor opt-outs quickly.
Buy email lists or add every customer to marketing emails without permission.
Why: Unsolicited email violates CAN-SPAM and erodes trust.
SMS consent
Get clear written consent for texts and tell people how to stop them.
Text promotional offers to anyone whose phone number you have.
Why: TCPA violations can cost $500–$1,500 per message.
Children's data
Avoid collecting data from children under 13 unless you comply fully with COPPA.
Track kids, use their photos, or sell their data without parental consent.
Why: COPPA imposes strict limits on data collection from children.
Fix it: before and after
Risky
Start your free trial now! (small print: $89/month after 3 days, cancel by phone only)
Fixed
3-day free trial, then $89/month. Cancel anytime in your account settings — same steps as signing up.
Why it works: Makes the real cost and cancellation path clear before sign-up.
Risky
Your order total is $19.99 ... Surprise! A $12.99 'processing fee' appears at the last step.
Fixed
Order total: $32.98 (includes $19.99 product + $12.99 processing fee). No hidden charges.
Why it works: Discloses all mandatory fees on the first pricing screen.
Risky
We got your number at checkout, so we'll text you deals.
Fixed
Want deal alerts by text? Reply YES to opt in. Reply STOP anytime.
Why it works: Gets explicit opt-in and provides a clear opt-out path.
What it costs to get wrong
The FTC has obtained billions in refunds and penalties for deceptive subscription and telemarketing practices. TCPA lawsuits can run into the tens of millions of dollars, and COPPA violations carry fines up to $51,744 per child affected.
Module quiz
Pass with 80% or higher. You can retake as many times as you need.
Question 0 of 8
1. Negative-option billing means:
2. Under the click-to-cancel rule, cancellation should be:
3. Hidden fees are acceptable if they are disclosed in the terms of service.
4. For email marketing under CAN-SPAM, you must:
5. For SMS marketing, the required consent is:
6. COPPA applies to:
7. A dark pattern is:
8. Your privacy policy can promise less protection than you actually provide.