Skip to content
Tech News
← Back to articles

Are We Stuck With Sneaky Subscription Cancellation Practices? One Attorney Chimes In

read original more articles
Why This Matters

This article highlights ongoing challenges consumers face with deceptive subscription cancellation practices, emphasizing the importance of clear and fair policies in the tech industry. As regulatory efforts evolve, both consumers and companies must stay informed to ensure transparency and protect their financial interests. The potential for future regulation could significantly impact how subscription services operate, promoting fairer practices across the industry.

Key Takeaways

The average US adult spends over $1,300 per year on subscriptions, according to CNET's latest subscription survey. And they're wasting an average of $252 per year in unused subscriptions. That's even more than last year's survey, when the average annual spend was $1,080, and we wasted slightly less -- $204 annually. One way to lower 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.

Last year, the Federal Trade Commission's Click to Cancel rule was struck down, which would have prohibited deceptive subscription cancellation practices and required companies that offer subscription services to make it 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. There's a chance that could change in the future.

"The FTC is currently working on a revised Click to Cancel regulation, and FTC Bureau of Consumer Protection Director Chris Mufarriage, I understand, intends to make uniform rules of the road nationwide," Brian Goodrich, a regulatory attorney at Holland & Knight, told CNET.

However, the FTC isn't stopping there. Other legislatures are blocking companies from deceptive subscription cancellation practices.

Check 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. And Colorado's 2025 law, SB25-145, requires online cancellation, consumer consent and any retention offers to include a cancellation link, Goodrich said. 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.

... continue reading