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US Subscription Compliance

MINIBC Support
  • Updated

Outline

We've compiled a list of subscription requirements by state for you to review. Since laws are always changing we strongly recommend you confirm independently the laws that apply to you and your store. 

States with Notable Auto-Renew or Negative Option Laws

Below is an alphabetical summary of states (plus D.C.) with laws specifically targeting automatically renewing contracts. The core themes you’ll see repeated in these laws are: clear and conspicuous disclosure, affirmative consent, notice of renewal, and an easy cancellation process.

California

  • Statute: California Business & Professions Code §§ 17600–17606.
  • Key Requirements: Clear, upfront disclosure of terms, affirmative consent, post-purchase acknowledgment, easy online cancellation, notice of material changes or price increases.

Colorado

  • Statute: Colorado Revised Statutes § 6-1-720.
  • Key Requirements: Clear disclosure of automatic renewal terms, notice to consumers prior to renewal if initial term is over 12 months or if a material change in terms occurs, easy cancellation methods.

Connecticut

  • Statute: Connecticut General Statutes § 42-126b to 42-126c.
  • Key Requirements: For consumer contracts with automatic renewals > 180 days, businesses must provide renewal notices and specific disclosure to customers.

Delaware

  • Statute: Delaware Code Title 6, § 2734 et seq.
  • Key Requirements: Requires clear disclosure of automatic renewal terms, notice to consumers prior to renewal if the contract is 12 months or more.

District of Columbia

  • Statute: D.C. Code § 28A-2031 et seq.
  • Key Requirements: Contracts with an auto-renewal clause longer than 1 month must provide notice of renewal between 30-60 days before the cancellation deadline. Must include clear instructions on how to cancel.

Florida

  • Statute: Florida Statutes § 501.165, § 501.017 (for gym memberships/health studios).
  • Key Requirements: Primarily addresses contracts longer than 12 months. Must give cancellation notice and keep disclosures of renewal terms clear.

Georgia

  • Statute: Georgia Code § 13-12-1 et seq.
  • Key Requirements: For auto-renewing contracts lasting more than 12 months, merchants must provide clear renewal notices and instructions on cancellation before renewal.

Hawaii

  • Statute: Hawaii Revised Statutes § 481-9.5.
  • Key Requirements: Requires clear disclosure of terms (including method of cancellation), plus reminders before renewal for contracts with an initial term of 1 year or more.

Illinois

  • Statute: 815 ILCS 601/10.
  • Key Requirements: Automatic renewal clauses must be clearly disclosed in the contract; if the renewal term is 1 month or more and the contract lasts 12 months or longer, notice must be given 30-60 days prior to renewal.

Louisiana

  • Statute: Louisiana Revised Statutes § 9:2716.
  • Key Requirements: For contracts over 1 year that automatically renew for >1 month, notice is required 30-60 days before the cancellation deadline.

Maine

  • Statute: Maine Revised Statutes Title 10, § 1210-A.
  • Key Requirements: Contracts with an initial term of 12+ months and that automatically renew for more than 1 month must send renewal notices 30-45 days in advance.

Maryland

  • Statute: Maryland Code Commercial Law § 14-1315.
  • Key Requirements: Clear disclosure of renewal terms, affirmative consent for certain consumer contracts, and renewal notices for contracts of 12+ months.

New York

  • Statute: New York General Business Law §§ 527 and 528.
  • Key Requirements: Requires clear and conspicuous disclosure, affirmative consent, acknowledgement of terms, and an easy cancellation mechanism. Amended in 2020 to strengthen requirements (similar to California).

North Dakota

  • Statute: North Dakota Century Code § 9-09-29.
  • Key Requirements: Prohibits automatic renewals longer than 60 days unless the consumer explicitly agrees.

Oregon

  • Statute: Oregon Revised Statutes §§ 646A.292–646A.295.
  • Key Requirements: Clear disclosure of auto-renew terms, affirmative consent, written acknowledgment, notice of material changes, and easy cancellation.

Rhode Island

  • Statute: Rhode Island General Laws § 6-50-1 et seq.
  • Key Requirements: Clear disclosure of auto-renew terms in “bold, capital, underlined, or larger type” and advanced notice before renewal.

South Carolina

  • Statute: South Carolina Code § 37-2-338.
  • Key Requirements: Similar emphasis on clearly disclosed auto-renew clauses for consumer contracts. Requires reminders for contracts over 12 months.

Tennessee

  • Statute: Tennessee Code Annotated § 47-18-1601 et seq.
  • Key Requirements: Clear disclosure for auto-renew terms and notice to consumers prior to renewal if the term is more than 12 months.

Utah

  • Statute: Utah Code § 15-10-201 et seq.
  • Key Requirements: Requires notice prior to renewal for contracts lasting more than 12 months if they automatically renew for a period of more than 1 month.

Vermont

  • Statute: Vermont Statutes Title 9, § 2454a.
  • Key Requirements: Mandates clear, conspicuous disclosure of auto-renewal terms, cancellation policy, and reminders for long-term contracts.

Virginia

  • Statute: Virginia Code § 59.1-207.45 et seq.
  • Key Requirements: Written or electronic notice 30-60 days before renewal for contracts 12+ months that automatically renew for 1 month or more.

Washington

  • Statute: Revised Code of Washington § 19.166.
  • Key Requirements: Clear disclosure of auto-renew terms and renewal reminders for contracts over 12 months. Online cancellation must be at least as easy as online sign-up.

West Virginia

  • Statute: West Virginia Code § 46A-6L-1 et seq.
  • Key Requirements: Similar auto-renew notice provisions for contracts over 1 year that renew for more than 1 month.

(Other states may have narrower or industry-specific rules, especially for services like gym memberships, home security, or telecommunication.)

Common Threads Across State Laws

  1. Clear & Conspicuous Disclosures

    • Disclose auto-renew terms in a way that stands out (e.g., boldface, separate checkbox).
    • Spell out pricing, renewal intervals, and cancellation instructions.

  2. Affirmative Consent

    • Consumers should explicitly agree to recurring charges (no pre-checked boxes).

  3. Advance Notice of Renewal

    • Particularly for contracts lasting 12 months or more, many states require a reminder notice 30–60 days before automatic renewal.

  4. Easy Cancellation

    • Cancellation methods must be at least as simple as sign-up methods.
    • Online cancellations are expected if sign-up is online.

  5. Post-Purchase Acknowledgment

    • Often required to confirm the terms and let the consumer know how to cancel (and by when).

  6. Special Rules for Free Trials

    • Some states (like California and New York) mandate explicit disclosures about when a free trial ends and what will happen upon conversion to a paid subscription.

Practical Compliance Tips

  1. Conduct a 50-State Audit

    • If you plan to sell nationwide, review your subscription flow with an attorney to ensure all relevant state laws are covered.
    • Align your sign-up flow to the strictest requirements (often California or New York) to minimize multi-state compliance risk.

  2. Use a Single, Prominent Disclosure

    • Provide an obvious summary of key terms (renewal frequency, how to cancel, next billing date, etc.).
    • This approach often satisfies multiple state requirements at once.

  3. Capture Clear Consent

    • Use a separate checkbox or a clearly worded button: “I agree to the auto-renewal terms.”
    • Avoid “bundling” subscription terms with other T&Cs where the customer might skip reading.

  4. Set Up Automated Renewal Reminders

    • Particularly for annual or longer-term subscriptions, automate an email reminder ~30 days before renewal.
    • Include a direct link to manage or cancel the subscription.

  5. Ensure Easy Online Cancellation

    • Provide a simple, user-friendly path for cancellation on your website (e.g., from the user account page).
    • Avoid “dark patterns” like hiding the cancel button or requiring multiple steps.

  6. Monitor Changes in the Law

    • States continue to tighten auto-renew laws (e.g., California’s expansions, New York’s updates).
    • Keep track of legislative updates to avoid compliance gaps.

Final Takeaways

  1. A Patchwork of Laws: While most states with auto-renew statutes share similar themes, there are variations in details (notice periods, specific contract lengths, font size, etc.).
  2. Err on the Side of Stricter Compliance: If you comply with the toughest requirements (like California’s and New York’s), you will often (but not always) cover requirements in other states.
  3. Seek Legal Review: Because violations can lead to class actions, fines, and reputational harm, it’s wise to have legal counsel review your subscription/auto-renew practices.

California and New York Summaries

California

Law: California Business & Professions Code §§ 17600–17606

  1. Clear & Conspicuous Disclosure

    • Must prominently present auto-renew terms (price, billing frequency, cancellation process) in a manner that stands out (e.g., near the checkout button, in an easily readable font).
    • Cannot bury crucial details in a general terms-and-conditions link.

  2. Affirmative Consent

    • Must obtain explicit agreement to auto-renew terms (e.g., a checkbox or statement the user must click).
    • Pre-checked boxes are prohibited.

  3. Post-Purchase Acknowledgment

    • After the user subscribes, send a confirmation (e.g., email) detailing the renewal terms, pricing, and cancellation instructions.

  4. Free Trials & Promotional Pricing

    • Must clearly disclose how and when free trials/promotional periods convert to paid subscriptions.
    • Include instructions on canceling before the trial ends if the consumer does not want to continue.

  5. Easy Cancellation

    • If customers sign up online, they must be able to cancel online in a straightforward manner.
    • Avoid “dark patterns” or requiring multiple steps (e.g., phone calls) to cancel if sign-up was online.

  6. Notice of Material Changes

    • Provide notice—and in some cases obtain consent—if there is a significant change in terms, such as price increases.

New York

Law: New York General Business Law §§ 527 & 528 (amended in 2020 to align more closely with California)

  1. Clear & Conspicuous Disclosure

    • Similar to California, auto-renew terms must be highlighted so the average consumer notices them.
    • Disclosures should be in “visual proximity” to the sign-up button or otherwise immediately visible.

  2. Affirmative Consent

    • Consumers must affirmatively agree to the recurring charges—again, no default or pre-checked boxes.

  3. Acknowledgment of Terms

    • Post-purchase confirmation of the terms, often via email, which includes renewal intervals, billing amount, and instructions to cancel.

  4. Free Trials & Promotional Pricing

    • Must inform consumers how they can cancel before the promotional period ends, and what the fees will be after the trial if they do not cancel.
    • Any trial that automatically converts to a paid plan should be clearly disclosed at sign-up.

  5. Cancellation Mechanism

    • Must provide a cancellation method that is “simple, cost-effective, timely.”
    • If the subscription was initiated online, a similarly accessible online cancellation route is expected.

  6. Notice Before Annual Renewals

    • For contracts of 12+ months, businesses must send a reminder or notice before renewal so consumers have adequate time to cancel if they wish.

Key Overlaps / Takeaways

  1. Disclosure: Both California and New York require “clear and conspicuous” presentation of subscription terms.
  2. Consent: Both prohibit automatically opting consumers in; an explicit affirmative action is essential.
  3. Post-Sale Acknowledgment: Both require sending a confirmation of the subscription details and how to cancel.
  4. Easy Cancellation: Both demand that the method for canceling must be at least as simple as the method used to subscribe (especially if sign-up is online).
  5. Free Trials: Both states require clear notices for free or reduced-cost trials that roll into paid subscriptions, including how to avoid unwanted charges.

By adhering to California’s and New York’s requirements, you will typically meet or exceed most other states’ auto-renew laws. However, you should still confirm compliance with any special notice periods or extra requirements in other states where you do business. Always consult legal counsel to ensure you stay current with evolving state and federal regulations.

Disclaimer

This summary is for general informational purposes and does not constitute legal advice. You should consult with an attorney familiar with consumer protection and e-commerce laws to ensure full compliance.

 

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