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Can I offer a free trial for my product or service in Indiana? What are the requirements?
Offering Free Trials in Indiana
Indiana does not have specific laws or regulations regarding free trials for products or services. However, if you plan to offer a free trial in Indiana, you should be aware of the requirements under the Telemarketing Sales Rule (TSR) enforced by the Federal Trade Commission (FTC) [2].
Under the TSR, if your offer of a product or service involves a negative option feature, such as a free trial that automatically converts to a paid subscription, you must truthfully, clearly, and conspicuously disclose three pieces of information to the customer:
- The fact that the customer’s account will be charged unless they take an affirmative action, such as canceling, to avoid the charge.
- The deadline for the customer to take the affirmative action.
- The specific steps the customer needs to take to cancel the subscription or avoid the charge.
Additionally, if you plan to offer a free trial in a proceeding involving a protection from abuse order, a workplace violence restraining order, or a no-contact order, you must provide a public mailing address for purposes of legal service [1].
Conclusion
While Indiana does not have specific laws or regulations regarding free trials, you must comply with the requirements under the TSR if your offer involves a negative option feature. Additionally, if you plan to offer a free trial in a legal proceeding, you must provide a public mailing address for purposes of legal service.
Source(s):
- [1] Indiana Rules of Trial Procedure
- [2] Complying with the Telemarketing Sales Rule | Federal Trade …
Jurisdiction
Indiana