GoKawiilIt's been about a year since the US Eighth Circuit Court of Appeals struck down the Federal Trade Commission's Click to Cancel rule. The rule was created to prohibit deceptive subscription cancellation practices. The Click to Cancel rule would have required companies that offer subscription services to update their cancellation processes so it's just as easy to cancel as it is to sign up. The court put a stop to that in July because the FTC didn't conduct a preliminary regulatory analysis -- which is required for rules that could impact the economy by more than $1 million.
Since then, companies haven't been required to follow any rule similar to the FTC's initial proposal. However, federal and state legislatures are cracking down on companies that are still using deceptive practices. For example, Shutterstock had to pay $35 million to settle allegations of illegal subscription and cancellation practices. The FTC reports that Shutterstock charged customers without their consent, didn't alert them to auto-renewals or cancellation charges, and made it difficult for them to cancel their subscriptions.
A recent CNET survey found that US adults spend over $1,300 a year on subscriptions, and waste $252 in unused subscriptions. One way to cut that cost is to cancel the services you no longer want, but getting rid of them isn't always simple. Some companies make it hard for customers to cancel memberships. Here's the latest and what you can do about it.
Look for state consumer protection laws
If you're dealing with misleading subscription cancellation or renewal practices, start by checking which state laws apply to consumer protections and subscriptions. I recommend checking your state's legislative portal and searching for related terms for related acts or laws.
For example, some states have automatic renewal laws that prohibit a company from automatically renewing your subscription without your consent. Some ARLs require clear renewal details, such as the duration, the recurring amount charged, the cancellation policy and how to cancel. Some state laws, such as California's, also require consent for renewal.
Maryland enacted a similar law in June 2026 to fight poor subscription renewal and cancellation rates. The law, HB0107, requires companies that offer automatic renewals to allow Maryland residents to cancel the renewal in a cost-effective, timely and easy manner before it renews. Connecticut, Massachusetts and New York are among the states with automatic renewal laws.
The FTC is still stopping deceptive subscription acts
Even though the FTC's Click to Cancel rule no longer exists, there's another law that's been in place since 2010 that the FTC is using to stop businesses from sneaky subscription practices.
The Restore Online Shoppers' Confidence Act says that companies must list the price, billing date and cancellation policy before receiving your credit card details for a service (including a subscription). Before confirming the purchase, the company must provide a way for you to confirm the sign-up. The company is also prohibited from sharing consumers' information with third parties.
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