Automatic renewal law
Laws that require clear terms, your consent and easy cancellation when a subscription renews automatically. States and a federal online-sales law set the rules.
Also called: auto-renewal law, ARL, subscription cancellation law
Laws that require clear terms, your consent and easy cancellation when a subscription renews automatically. States and a federal online-sales law set the rules.
What it means
An automatic renewal law (ARL) regulates subscriptions that renew or keep billing you until you cancel. These laws generally require the seller to explain the terms clearly before you sign up. The seller must also get your affirmative consent and give you a simple way to cancel. Some states, including California, have their own versions, and they differ.
California's law is a common example. Amendments took effect July 1, 2025. Businesses must get express consent and send reminders. They must let you cancel the way you signed up, so online sign-ups must be cancelable online. For a term of a year or longer, a renewal notice is due 15 to 45 days before renewal. A free or discounted trial longer than 31 days needs notice 3 to 21 days before it ends.
A federal law, the Restore Online Shoppers' Confidence Act (ROSCA), sets baseline rules for online sales. Sellers must disclose material terms, get express informed consent, and offer a simple way to stop recurring charges. In July 2025 a federal appeals court struck down the FTC's 2024 "click to cancel" rule. ROSCA is still in force.
What it means for you
If you were charged for a renewal you did not clearly agree to, an auto-renewal law may support a refund request or a class action. Settlements in this area often cover people in the state whose law was allegedly broken, so your home state matters. Check your account for the dates you were billed, since class periods are tied to them. To stop a subscription, cancel the way you signed up and save the confirmation. If a charge is wrong, you can dispute it with your card issuer or report it to your state attorney general.
Example
Say a hypothetical meditation app offers a free week, then renews at an annual price without a reminder. A California subscriber says she never agreed to automatic renewal and was never told how to cancel online. She sues, and others in the same position join a class action under the state's law. If it settles, notice goes to California subscribers who paid a renewal during a set period. Each can claim a share of the fund or a flat amount.
FAQ
Not if your state has an automatic renewal law that applies. Those laws require the seller to disclose the terms and get your consent, and some require reminders before renewal. California, for example, requires a renewal notice 15 to 45 days ahead for terms of a year or longer. Rules differ by state.
Use the same method you used to sign up, if you can. In California, online sign-ups must be cancelable online. Save the confirmation. If you are still charged, dispute the charge with your card issuer and report it to your state attorney general.
Related terms
- California Attorney General: consumer alert on the Automatic Renewal Law (Sept. 4, 2025)
- 15 U.S.C. 8403: ROSCA, online negative option sales (Cornell LII)
- Custom Communications, Inc. v. FTC (8th Cir. July 8, 2025)
- FTC: Negative Option Rule history and 2026 status
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.