Subscription Cancellation Rights

The subscription economy has exploded, with Americans spending an average of $219 per month on subscription services—often without realizing how much they're paying or how difficult cancellation can be. From streaming services and gym memberships to software subscriptions and meal kits, companies have perfected the art of making sign-up easy and cancellation nearly impossible. However, federal and state laws protect consumers from deceptive subscription practices, and the FTC's new "Click-to-Cancel" rule significantly strengthens these protections. The FTC's Consumer Protection resources provide guidance on your rights when dealing with subscription services. This comprehensive guide explains your legal rights when dealing with unwanted subscriptions, how to navigate cancellation obstacles, and how to recover money from subscriptions you never authorized or couldn't cancel.

Federal Laws Protecting Subscription Consumers

FTC Click-to-Cancel Rule (2024)

The FTC's Negative Option Rule amendments (16 CFR Part 425) require sellers who use negative option marketing to:

• Provide clear disclosure: Material terms must be clearly and conspicuously disclosed before obtaining billing information
• Obtain express informed consent: Cannot charge consumers without their affirmative consent to the subscription terms
• Provide simple cancellation: Cancellation must be at least as easy as sign-up—same medium, same number of steps
• Send reminders before renewal: Must remind consumers before automatic renewals and provide cancellation instructions
• Honor cancellation requests immediately: Cannot require additional steps, sales pitches, or retention offers before processing cancellation

ROSCA - Restore Online Shoppers' Confidence Act (15 U.S.C. 8401)

ROSCA specifically addresses online negative option marketing and requires sellers to:

• Clearly disclose all material terms of the transaction before obtaining billing information
• Obtain express informed consent before charging
• Provide simple mechanisms for stopping recurring charges

Violations can result in FTC enforcement, state attorney general actions, and civil penalties up to $50,120 per violation.

Electronic Fund Transfer Act (15 U.S.C. 1693)

For subscriptions charged to your bank account (ACH/debit), EFTA provides:

• Right to stop preauthorized transfers by notifying your bank at least 3 business days before the scheduled transfer
• Bank must stop payment if you provide oral or written notice
• Liability limited to $50 if you report unauthorized transfers within 2 business days

State Auto-Renewal Laws

Many states have enacted specific laws governing automatic renewals with consumer protections that exceed federal requirements:

State	Law	Key Requirements	Remedies
California	Bus. & Prof. Code 17600-17606	Clear disclosure, affirmative consent, acknowledgment, online cancellation required	Consumer may request refund of all charges; can't enforce agreement
New York	Gen. Bus. Law 527-a	Clear disclosure, renewal notice 15-30 days before renewal	Violation is deceptive act; consumer damages + attorney fees
Illinois	815 ILCS 601 (Auto-Renewal Act)	Clear disclosure, affirmative consent, easy cancellation mechanism	Violation is consumer fraud; actual damages or $100
Oregon	ORS 646A.295	Disclosure, notice of renewal, cancellation mechanism	Unlawful trade practice; consumer remedies available
Virginia	Va. Code 59.1-207.45	Clear disclosure, cancellation procedure disclosure	Consumer Protection Act remedies; AG enforcement

Common Subscription Problems

1. Difficulty Canceling

Companies use various tactics to make cancellation hard:

• Phone-only cancellation: Requiring calls during limited hours with long hold times
• Multi-step processes: Forcing clicks through multiple pages, offers, and confirmations
• Retention scripts: Training representatives to pressure you into keeping subscriptions
• Hidden cancellation links: Burying cancellation options deep in account settings
• Requiring reasons: Demanding explanations and offering "solutions" before allowing cancellation

2. Free Trial Traps

Deceptive free trial offers include:

• Automatic conversion: Trials converting to paid subscriptions without clear notice
• Hidden charges: "Free" trials that require payment of shipping, handling, or activation fees
• Negative option: Requiring action to avoid being charged rather than action to be charged
• Undisclosed terms: Failing to clearly state when trials end and billing begins

3. Unauthorized Charges

Charges without proper authorization include:

• Sign-up without consent: Being enrolled through deceptive marketing or without knowledge
• Price increases without notice: Raising rates without informing subscribers before renewal
• Charges after cancellation: Continuing to bill after you've canceled
• Third-party billing: Charges appearing from companies you don't recognize

4. Dark Patterns

Manipulative design practices the FTC has targeted include:

• Confirm-shaming: Using guilt-inducing language on cancel buttons ("No, I don't want to save money")
• Roach motels: Easy to enter, hard to exit
• Hidden costs: Revealing fees only after entering payment information
• Misdirection: Using visual design to direct users away from cancellation options
• Forced continuity: Continuing charges after free trial without explicit consent

Industry-Specific Rules

Gym Memberships

Many states have specific gym membership cancellation laws:

• California: Civil Code 1812.80-1812.98 - 5-day cancellation right after signing; can cancel if you move 25+ miles from gym or become disabled; no penalty for cancellation after first year
• New York: Gen. Bus. Law 621-628 - 3-day cancellation right; can cancel if you move 25+ miles or become disabled; maximum 3-year contract
• Florida: Fla. Stat. 501.012-501.019 - 3-day cancellation right; relocation and disability cancellation rights

Dating Services

Online dating services face heightened scrutiny:

• California requires dating services to allow cancellation within 3 days (Civ. Code 1694)
• FTC has pursued enforcement against services with deceptive practices
• Auto-renewal laws apply to ongoing subscriptions

Magazine and Newspaper Subscriptions

Traditional media subscriptions must comply with:

• FTC's Negative Option Rule requirements
• State auto-renewal disclosure laws
• Refund obligations for undelivered content

Step-by-Step: Canceling Difficult Subscriptions

1. Check your rights: Review the subscription terms and your state's auto-renewal laws. If the company didn't comply with disclosure requirements, you may be entitled to a full refund.
2. Try online first: Under the FTC's Click-to-Cancel rule, if you signed up online, you should be able to cancel online. Look for account settings, billing, or subscription management.
3. Document everything: Screenshot your cancellation attempts, note dates and times of calls, save chat transcripts. This evidence is crucial if you need to dispute charges.
4. Send written cancellation: Email the company's customer service with clear cancellation language: "I am canceling my subscription effective immediately. Please confirm cancellation and stop all future charges."
5. Contact your bank/credit card: If the company won't cancel or continues charging, you have options:
   • Chargeback: Dispute unauthorized charges with your credit card (Fair Credit Billing Act gives 60 days from statement date)
   • Stop payment: For bank account debits, instruct your bank to stop future payments (EFTA rights)
   • New card number: Request a new card number to prevent future charges
6. File complaints: Report deceptive subscription practices to:
   • FTC (reportfraud.ftc.gov)
   • State attorney general consumer protection division
   • Better Business Bureau
7. Send demand letter: If owed refunds, send a formal demand letter citing specific law violations.

Credit Card Chargeback Rights

The Fair Credit Billing Act (15 U.S.C. 1666) provides powerful protections for subscription disputes:

Grounds for Chargeback

• Unauthorized charges: You never agreed to the subscription
• Charges after cancellation: Company billed you after you canceled
• Goods/services not received: You paid but didn't receive what was promised
• Goods/services not as described: Service materially different from what was advertised
• Billing errors: Incorrect amounts, duplicate charges

Chargeback Process

1. Contact your credit card issuer (call number on back of card or use online dispute form)
2. Provide details: merchant name, charge amount, date, reason for dispute
3. Submit supporting documentation (cancellation confirmation, correspondence with merchant)
4. Issuer investigates and may provide provisional credit
5. Merchant can respond; issuer makes final determination

Major Subscription Service Policies

Service	Cancellation Method	Refund Policy	Notes
Netflix	Online (Account settings)	No refunds; access continues until end of billing period	Easy online cancellation
Amazon Prime	Online (Prime settings)	Full refund if no benefits used; prorated if used	3-day window for full refund
Spotify	Online (Account page)	Generally no refunds	Can contact support for exceptions
Adobe Creative Cloud	Online + phone	14-day refund; 50% ETF after	Annual plans have early termination fee
Planet Fitness	In-person or certified mail	Annual fee non-refundable	Requires club visit or certified letter
LA Fitness	In-person or certified mail	State law dependent	Often requires 30-day notice

Calculating Damages for Subscription Disputes

Unauthorized Subscription Charges

• All charges: Full refund of every charge made without proper consent
• Bank fees: Overdraft or NSF fees caused by unauthorized charges
• Time and effort: Some states allow compensation for time spent resolving disputes

Difficult Cancellation Damages

• Post-cancellation charges: All charges after your cancellation request
• Excess charges: If company charged during unreasonably long "processing" period

Statutory Damages

State consumer protection laws may provide additional remedies:

• California CLRA: Actual damages + up to $1,000 statutory damages per violation
• New York GBL 349: Actual damages or $50 (whichever greater) + treble damages for willful violations up to $1,000
• Illinois Consumer Fraud Act: Actual damages + punitive damages + attorney's fees

Small Claims Court for Subscription Disputes

State	Small Claims Limit	Filing Fee
California	$12,500	$30-$75
Texas	$20,000	$48-$98
New York	$10,000	$15-$20
Florida	$8,000	$55-$300
Illinois	$10,000	$30-$100

Frequently Asked Questions

Can a company refuse to let me cancel?

No. Under the FTC's Click-to-Cancel rule and ROSCA, companies must provide a simple mechanism to cancel. If they make cancellation unreasonably difficult, they may be violating federal law. Document your attempts and file complaints with the FTC and your state attorney general.

What if I forgot about a subscription and was charged for months?

You may be able to recover past charges depending on the circumstances. If the company didn't provide required disclosures or renewal notices, you may be entitled to refunds under state auto-renewal laws. For credit card charges, you can dispute charges from the past 60 days. For older charges, send a demand letter citing disclosure violations.

Can I cancel a subscription in the middle of a billing period?

Yes, you can always cancel, though whether you get a refund for the unused portion depends on the company's policy and your state's laws. Some states require prorated refunds for prepaid services. At minimum, cancellation should prevent future charges.

What if the company sent the cancellation confirmation but kept charging me?

This is a clear violation. Save the confirmation and dispute all post-cancellation charges with your credit card. Send a demand letter for refund of all charges after your cancellation date. This conduct may also violate ROSCA and state consumer protection laws, entitling you to additional damages.

Do I have to give a reason to cancel?

No. Companies cannot require you to provide reasons or listen to retention offers before processing cancellation. Under the FTC rule, the cancellation mechanism must be straightforward without requiring unnecessary steps. You can simply say "I want to cancel" and decline to elaborate.

Can I get my credit card to stop all future charges to a merchant?

Yes. You can request a "stop payment" or merchant block through your credit card issuer. You can also request a new card number, which will prevent future charges. However, the merchant may still claim you owe money—stopping payment doesn't necessarily cancel the contractual obligation.

What if a free trial auto-converted and I didn't know?

Free trial conversions require clear disclosure and consent under both ROSCA and the FTC's Negative Option Rule. If you weren't clearly told the trial would convert to a paid subscription or when billing would begin, you may be entitled to a full refund. This is one of the most common ROSCA violations.

Resources

• FTC Complaint: reportfraud.ftc.gov - Report deceptive subscription practices
• Consumer Financial Protection Bureau: consumerfinance.gov - Disputes involving financial products
• State Attorney General: Consumer protection division for state law violations
• Credit card issuer: Dispute unauthorized or post-cancellation charges
• DoNotPay: Service that automates cancellation for many subscriptions