Legal ramifications for auto-charging credit card for online subscription?

Hello,





A client of mine has launched an online subscription service. Customers are paying online with their credit card but their advert/listing is only for one year.





When the customer's listing expires in one year can we just run the credit card through again to auto renew the subscription?





At this time our Terms %26amp; Agreements do not mention auto-renewal. Even if they did does anyone know what the legal ramifications might be if we did this?





My client is thinking that, from a business point of view, it may be better to 'ask for forgiveness than permission', and collect the money up front. If you give customers too much time to think about it they may decide to not renew.





Thanks

Legal ramifications for auto-charging credit card for online subscription?
You're looking to be taken to court for fraud.
Reply:Wow, that is incredibly sketchy. How would your client feel if he - as a small business - were charged without knowing it for an online subscription? Would be be willing to work with them again if they just said "sorry" after the fact?





It is illegal to auto-renew and auto-charge without a clients' permission. Not only should it be outlined in the terms and conditions, but just to completely cover himself, he should have customers specifically sign/initial/check that part of the agreement.





If he wants to keep his customer base, he doesn't need to try to pull a "fast one" on his customers.