Disclosure, consent and a cancellation path as easy as the sign-up.
Esshaki Legal Media TeamCurrent as of March 2022
Subscription and auto-renewing arrangements are regulated by federal rules and
by an expanding set of state statutes.
Disclosure before purchase. The renewal terms, the recurring charge and its
frequency, the cancellation deadline and the method, presented clearly and
conspicuously in visual proximity to the consent mechanism.
Affirmative consent to the recurring charge, separate from consent to the
transaction generally. Pre-checked boxes and bundled consents are the recurring
violation.
Acknowledgment after purchase, retaining the terms and the cancellation
information in a form the consumer can keep.
Cancellation. A mechanism at least as simple as the enrollment mechanism.
Where enrollment was online, cancellation must be available online without
speaking to a representative — the requirement generating the most enforcement.
Renewal reminders before renewal for longer terms, required by several
statutes with specified timing.
Free trials and promotional pricing with additional notice before the price
increases.
Remedies. Statutory damages, refunds, and in some statutes a provision that
goods delivered without compliant consent are an unconditional gift.
Compliance practice. Test the cancellation path as a user, on every channel,
and document it — because that is how enforcement tests it.