Continuity sales model

A continuity program is a company’s sales offer where a buyer/consumer is agreeing to receive merchandise or services automatically at regular intervals (often monthly), without advance notice, until they cancel.

A consumer can join a plan simply by accepting an introductory offer of merchandise or services.

Continuity plans may offer an introductory “free trial period” to let potential consumers check out the merchandise or service and decide whether to join the plan.

If a consumer decides to keep the merchandise beyond the free trial period or fail to cancel the service within the free trial period, not only they must pay, but they automatically become a plan member.

Joining a continuity plan means the consumer agrees to the plan’s sales method as long as they are members. They’ll automatically get periodic shipments of merchandise or delivery of services. Consumers won’t get any announcements or rejection forms before each shipment or service period. The shipments or services continue until consumers cancel their membership.

Some continuity plans give you an “approval” period. That way, consumers can check out the merchandise and decide whether to keep it and pay for it. Many programs selling collectibles, like stamps or coins, work this way. Other continuity plans require people to pay for merchandise when they receive it.

Sellers must give you information about the plan’s terms and conditions, clearly and conspicuously, in their promotional materials.

These terms may include:

and

Usually a plan will use the same billing method for future shipments that it used for the introductory merchandise or service period.

Continuity plans are promoted in newspapers, magazines, TV and radio commercials, direct mail, and over the telephone and the Internet.

Before consumers agree to any plan:

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Wikipedia