From Dark Patterns to Clear Value

Andy Busam -

A Pushback on Dark Patterns 

Tech companies have long made it easier to start a subscription than to end one. That changes on January 14, 2025, when the FTC's new "click-to-cancel" rule takes effect, requiring companies to make cancellation as simple as signup.

Consider Uber's current FTC investigation. The company's subscription service requires one-click enrollment but mandates a phone call for cancellation – a practice that will be explicitly illegal in two weeks. This isn't unique to Uber; it's the industry standard that's about to face unprecedented regulatory scrutiny.

The timing is significant. According to Statista, 25% of mobile users who download an app use it only once before abandoning it. Yet companies spend an average of $3.52 per user on acquisition costs, according to 2019 data. This creates an unsustainable dynamic where user acquisition costs remain high while retention relies increasingly on friction rather than value.

Friction Causes More Harm Than Value

The relationship between app retention and value is more complex than it might seem. Research shows that the first 7 days after installation are critical - apps lose an average of 71% of users within this window. But retention patterns vary significantly based on how quickly users grasp an app's core value. Other recent research shows that engagement is "primarily a context-based variable" that requires understanding specific user needs in different situations.

Amazon Prime's cancellation process is an example here. As documented in multiple consumer complaints, the company built an intentionally complex maze of menus and confirmations to prevent users from ending their subscriptions – exactly the kind of practice the FTC's new rule aims to eliminate.

Research into user engagement reveals an interesting paradox: engagement isn't just about what happens after a user starts using your product. It spans the entire customer journey - including how they leave. Companies that understand this are fundamentally rethinking how they approach retention.

The Science of Staying

A 2022 systematic review published in the Journal of Medical Internet Research identified several key factors that influence whether users continue using mobile apps. While this review analyzed healthcare apps, I think the lessons are transferable.

  1. Clear value proposition: Users understand exactly what problem the app solves for them. Research emphasizes that "engagement is a multidimensional construct that encompasses cognitive, affective, and behavioral components." This simply means that value must be demonstrated across all dimensions of the user experience.
  2. Early wins: Apps are more successful when users can quickly grasp their value and achieve initial results. The first few days after installation are especially critical for retention.
  3. Habit integration: Research shows that apps should align with users' existing routines and behaviors to maintain engagement over time. As the JMIR review noted, users are more likely to keep using apps that fit naturally into their daily lives and provide clear ongoing value.

Conversely, the top reasons for abandonment are more tactical: poor performance (43%), excessive notifications (32%), and hidden costs (28%). But beneath these surface-level complaints lies a deeper truth: users leave when an app's actual value doesn't match its perceived value.

Building Better Retention 

The research reveals an interesting paradox: engagement isn't just about what happens after a user starts using your product. It's a "continuous and dynamic process that spans the entire customer journey - including how they leave." Companies that understand this are fundamentally rethinking how they approach retention.

Consider Calm, the meditation app. After discovering that users who set daily reminders had 3x higher retention rates, they conducted an experiment making the reminder feature more prominent after a user's first session. The result? Forty percent of users adopted the feature, achieving the same retention boost. Rather than making it harder to leave, Calm focused on making it easier to stay.

From Compliance to Opportunity

Redesigning retention starts with a shift in metrics. Instead of optimizing for raw retention numbers, leading companies now focus on active usage and feature adoption rates. Netflix exemplified this approach in May 2020 when they introduced a policy to help inactive users by automatically canceling subscriptions for those who haven't watched anything in a year.

I suggest these three key principles for redesigning retention based on research and best practices:

  1. Design for Success
    1. Map and optimize critical user journeys
    2. Remove friction from core features
    3. Measure time-to-value for new users
  2. Transparent Value Exchange
    1. Clear pricing and terms
    2. Proactive usage reminders
    3. Simple account management
  3. Easy Exits
    1. One-click cancellation
    2. Clear offboarding feedback
    3. Option to pause subscription

Taking Action

Additionally, companies should expand beyond traditional engagement metrics to include behavioral metrics. 

Start by auditing your cancellation flow against these questions:

  • Can users cancel through the same channel they joined?
  • How many steps are required?
  • Are all costs and terms clearly displayed?
  • Do you provide neutral options without manipulation?

Design Ethical Alternatives

  • Replace mandatory phone calls or onerous chatbots with self-service options
  • Build transparent usage dashboards
  • Create value-driven re-engagement campaigns

Track and measure true engagement with metrics such as:

  • Feature adoption rates
  • Time-to-value for new users
  • Customer Satisfaction and Effort Scores (CSAT, CES)
  • Net Promoter Score (NPS)
  • Customer advocacy and loyalty indicators
  • Negative engagement behaviors (cart abandonment, reduced interaction)

Why It Matters

The January 14 FTC deadline provides an opportunity to rethink retention strategies around genuine user value. Companies that embrace this shift won't just avoid regulatory scrutiny, they'll build stronger, more sustainable businesses.

With just days until the FTC's click-to-cancel rule takes effect, product leaders face a choice. They can view this as merely a compliance exercise, grudgingly removing friction from cancellation flows. Or they can use it as an opportunity to build genuine, sustainable retention through user value.

The data points to the latter approach. Companies that prioritize transparent pricing, clear value propositions, and frictionless account management will outperform those relying on dark patterns.

Great digital products are not built on keeping users trapped in subscriptions. They are built on making them want to stay in the first place.