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Home›Learn›Automatic Renewal Laws
federal law

Automatic Renewal Laws

State and federal laws regulating how companies handle subscription auto-renewals.

📜 Cal. Bus. & Prof. Code § 17600-17606; varies by state📅 Since Varies by state
🇺🇸 United States

📖 What It Means

Auto-renewal laws require companies to clearly disclose auto-renewal terms before purchase, obtain affirmative consent, send renewal reminders, and provide easy cancellation. Over 30 US states have auto-renewal laws, with California (ARL) being the most comprehensive. Companies that violate these laws may face fines and must refund unauthorized renewal charges.

✅ Key Points

  • 1California ARL: must disclose terms + provide easy online cancellation
  • 2Illinois: 30-day advance notice of renewal required
  • 3New York: automatic renewal terms must be clear and conspicuous
  • 4Companies must send reminder before auto-renewal
  • 5Unauthorized renewal charges may entitle you to a full refund

💡 How to Use This

If a company auto-renewed without proper notice, you may be entitled to a full refund under your state's auto-renewal law. Reference the specific state law in your dispute letter.

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⚖️ Legal Citation

Cal. Bus. & Prof. Code § 17600-17606; varies by state

Use this citation in your dispute letters for legal weight.

🔗 Related Terms

FTC Click-to-Cancel Rule

Federal regulation requiring businesses to make cancellation as easy as signing up.

ROSCA (Restore Online Shoppers' Confidence Act)

Federal law requiring clear disclosure before charging for online subscriptions.

Early Termination Fee (ETF)

A penalty charged for canceling a contract before its end date.

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