April 22, 2013

Honest Diaper Auto-Billing service

Honest Diaper’s auto-billing service.

Jessica Alba’s Honest Diapers is an online service selling diapers and other baby essentials to parents.

A diaper service sending a supply of diapers periodically makes life a little easier for parents.

Honest Diapers signs up new users with a free trial offer - pay just $6 via credit card to get a trial kit of diapers and baby wipes. But, then the additional terms -

If you don’t cancel within 7 days, you will start getting billed $80/month + shipping/handling costs. 
With your free Trial Kit you will become enrolled as a MEMBER of The Honest Company. You have 7 days following receipt of your Trial Kit to cancel your membership at any time, for any reason. We will remind you about your membership options. If you choose to not cancel your membership, you will be charged $79.95 plus shipping and handling for your monthly supply of Diapers & Wipes, or $35.95 plus shipping and handling for your monthly supply of Family Essentials.
The full Honest terms detail the full commitment expected from customers.

A much-needed service but it needs a different business model than an auto-billing model.

A few other services with similar auto-billing models