FTC’s new rules, Hims & Hers tackles obesity, & Halo Top’s cautionary tale

It’s Wednesday!

TikTok is in the “early stages” of connecting manufacturers with creators to help them create products to sell on TikTok Shop, Business Insider reported.

Updates ☕️

📉 Target plans to cut prices on another 2,000 items this holiday season.

💰 Nearly 4 in 10 parents expect to go deeper into debt buying holiday presents.

📁 Poshmark is reversing its new seller fee structure after a drop in sales and seller backlash.

🚀 Foxtrot is slowly rising from the dead. It has resumed its e-commerce business and reopened its third location, Retail Dive reports.

🏳️‍🌈 Fast food brands rank lowest for LGBTQ+ representation in ads, with only 2% of respondents seeing them as inclusive.

🛒 Walmart, Aldi, and JCPenney are rolling out "inflation-busting" holiday deals, with promises to keep prices stable or at pre-inflation levels for Thanksgiving and beyond.

💻 Spotify is piloting its own ad exchange, partnering with The Trade Desk to scale its automated video ad offerings and capture more revenue from businesses, with plans to expand to audio ads soon.

🐔 Chick-fil-A is launching an entertainment app called Play, featuring original family-friendly content like games, shows, and podcasts to stay connected with customers beyond the restaurant.

🧘‍♀️ Alo Yoga is expanding into Asia, and it has signed BTS’ Yin as its new brand ambassador.

The FTC’s new Click-to-Cancel rule: What you need to know

Starting in April 2025, businesses offering subscriptions and memberships will face stricter rules under the FTC’s new “Click-to-Cancel” regulation. The aim? To make canceling as easy as signing up, putting an end to the frustrating hoops many consumers currently face when trying to end services.

Why it matters: The rule targets "negative option" programs, where a subscription automatically renews unless the customer actively cancels. Think gym memberships, streaming services, or free trials that convert into paid plans. The FTC is cracking down on practices it describes as “saddling shoppers with recurring payments” they didn’t want or intend to continue.

Key changes for brands:

• Clear disclosure: Businesses must clearly inform customers about terms like recurring charges, price increases after free trials, and cancellation deadlines—before obtaining billing information.

• Easy cancellation: If a customer can sign up online, they should be able to cancel just as easily, without hunting for hidden buttons or convoluted processes.

• Affirmative consent: Sellers need explicit, unambiguous consent from customers for any negative option program. The “I agree” checkbox can’t be buried in fine print.

Failure to comply could result in fines of up to $51,744 per violation. Brands should review their cancellation policies and customer consent flows now to avoid costly penalties when the rule takes effect next year.

Hims & Hers tackles obesity crisis in bold new campaign

Why it matters: Known for playful ads on hair loss and sexual health, telehealth company Hims & Hers is shifting gears with a serious new campaign focused on the obesity epidemic. The company is running full-page ads in the New York Times every Sunday, spotlighting health risks associated with extreme obesity.

The strategy: Instead of promoting products directly, Hims & Hers is sharing stark health facts—like how extreme obesity shortens life expectancy by up to 14 years. The ads are crafted weekly to stay aligned with the latest research and regulatory changes.

Regulatory twists: The campaign responded quickly to an FDA decision impacting weight loss drugs, and the company emphasized its compounded semaglutide product—an alternative to brand-name drugs like Wegovy and Ozempic.

The bigger picture: With hopes of $100 million in revenue from its weight loss program by 2025, Hims & Hers is banking on building trust and awareness, focusing on health education rather than pushing a direct sales message.

Bottom line: Hims & Hers aims to inform and engage, spotlighting the serious health impacts of obesity while keeping the sales pitch subtle.

Halo Top’s rise and fall: A cautionary tale for brands

Why it matters: Once the darling of the ice cream industry, Halo Top's meteoric success—and equally rapid decline—serves as a warning for brands that ride trends too long without evolving.

The story: Founded in 2012, Halo Top surged to $350 million in revenue by 2017, thanks to its low-calorie, high-protein ice cream. A viral 2016 GQ article and clever packaging that screamed "guilt-free" made it a hit with health-conscious shoppers.

What went wrong: By 2019, consumer preferences shifted back to indulgent, full-fat options, and competition from brands like Unilever intensified. Sales dropped 40%, and hopes of a $2 billion buyout faded. Eventually, Halo Top was sold to Wells Enterprises to revive the struggling brand.

The lesson: Halo Top’s story is a reminder: trends are fleeting, and relying on one moment can be fatal. Continuous innovation and adapting to changing consumer tastes are key to long-term survival.

What’s next: Wells Enterprises is now steering Halo Top, but the brand’s swift fall from grace highlights the dangers of not staying ahead in the ever-evolving CPG market.

NOTES 📝

Today’s top marketer & brand reads.

Extra read: Viral TikTok trends are changing what America eats (Axios)

Exclusive: Amazon sofas for $20? Retailer sets price caps for new Temu-like store (The Information)

Watch: TikTok (SNL)