Refund and Cancellation Policy Disputes
Definition
SMB software publishers face high friction around customer refund requests and subscription cancellations. Customers report that refund/cancellation policies are overly restrictive ('draconian'), lack clarity, or are not honored despite requests. When customers attempt to cancel subscriptions, they report unexpected continued charges (as much as $6,530+ in one case) and difficulty stopping billing. The legal exposure includes BBB complaints, FTC complaints, potential state attorney general investigations, and class-action litigation. Loss mechanism: negative reputation, chargeback disputes, regulatory investigations, legal defense costs, forced refund settlements, and damaged customer lifetime value.
Key Findings
- Financial Impact: $100,000-$500,000
- Frequency: weekly
Why This Matters
Subscription management software (Zuora, Stripe Billing), compliance consulting, automated refund processing systems, legal template libraries
Affected Stakeholders
CEO/Founder, VP Sales/Head of Sales
Deep Analysis (Premium)
Financial Impact
Data available with full access.
Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
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