US Subscription Auto-Renewal Rules: Federal Law and Key State Differences

Start with the federal baseline and its limits

ROSCA covers material disclosures, informed consent, and a simple way to stop recurring charges in certain online transactions. The current federal Negative Option Rule is narrower: it addresses prenotification plans. The FTC's 2024 amended Negative Option Rule was vacated by the United States Court of Appeals for the Eighth Circuit in July 2025, and the FTC's 2026 conforming action restored the narrower text. California and New York provide important state examples, but they are not a nationwide rule for every subscription.

The FTC's ROSCA page explains that an online seller using a negative-option feature must clearly disclose material terms before obtaining billing information, obtain the consumer's express informed consent, and provide a simple mechanism to stop recurring charges. ROSCA also has separate requirements for post-transaction third-party sellers. Whether it applies depends on the actual transaction, not merely the word “subscription.”

Do not treat proposed or vacated rules as current rights

The FTC's February 2026 conforming action records that the expanded Negative Option Rule was vacated by a federal court. The operative 16 CFR Part 425 text concerns prenotification negative-option plans, where a seller sends or identifies a selection unless the customer declines it.

The FTC's March 2026 advance notice is an Advance Notice of Proposed Rulemaking and request for public comment. It signals rulemaking activity; it is not itself a new cancellation right or a promise about what a final rule will contain.

Check California only when California law is in scope

California Business and Professions Code section 17601 defines automatic renewal, continuous service, and the offer terms that must be disclosed. Those terms include the recurring nature of the arrangement, cancellation policy, recurring charge, term length, and any minimum purchase obligation that applies.

Section 17602 includes clear-and-conspicuous disclosure, affirmative-consent, retainable acknowledgement, cancellation, change-notice, and reminder requirements. An offer accepted online must have an online termination method that does not obstruct or delay termination. The exact version and effective dates matter. Under California Business and Professions Code section 17602(j), the 2024 amendments apply only to a contract entered into, amended, or extended on or after July 1, 2025; those amended requirements do not automatically apply to every contract entered into earlier. Section 17605 exempts specified regulated services and entities. Do not apply the California article without checking the consumer, transaction date, business, and exemption.

Check New York as a separate state example

New York General Business Law section 527-a sets state-specific requirements for automatic-renewal and continuous-service offers to New York consumers. Its current text addresses clear material terms, affirmative consent, acknowledgement, cancellation mechanisms, price changes, and conduct that obstructs or unreasonably delays cancellation.

The New York Department of State's consumer alert explains the state's recurring-service protections and online cancellation route. It is useful context, but the current statute controls. A New York rule does not automatically govern a customer or business in another state.

SubsCraft tip: Save the offer, consent screen, renewal notice, cancellation request, and confirmation as separate records so you can identify which law and event each document supports.

Separate service cancellation from payment disputes

An auto-renewal disclosure issue, a request to end the service contract, and a bank or card dispute are different questions. Send the cancellation through the merchant's stated route and request the effective end date and final bill in writing. If a later debit is disputed, use the process for the actual payment rail and preserve the merchant evidence; stopping a payment does not by itself prove that the contract ended.

This article provides general information, not personal legal or financial advice. Its sources and examples cannot promise any cancellation, refund, reimbursement, dispute, enforcement, or legal outcome. State coverage, exemptions, facts, deadlines, and available remedies can change the result, so obtain qualified advice when the consequences are significant.