The Unsubscribe Act of 2025 establishes federal rules requiring clear disclosure and express consent for negative option billing practices, mandates easy online cancellation, and imposes strict notification requirements before free trials convert to paid subscriptions.
Mark Takano
Representative
CA-39
The Unsubscribe Act of 2025 establishes strict federal rules to protect consumers from deceptive "negative option" marketing, where silence is treated as consent to be charged. This law mandates clear disclosure, requires express informed consent for initial charges and automatic renewals, and demands easy, accessible cancellation methods for all contracts. The Federal Trade Commission (FTC) is empowered to enforce these new standards against merchants nationwide.
Unsubscribe Act of 2025 Mandates 'Express Consent' and Simple Cancellation for All Subscriptions
Ever signed up for a “free trial” and then felt like you needed a detective agency and a secret decoder ring just to cancel it before the charge hit? The Unsubscribe Act of 2025 is aiming to put an end to that kind of digital friction, establishing new federal rules for what’s known as “negative option” marketing, where a company assumes your silence means you want to be charged. This bill applies to any merchant using these practices, whether you’re signing up for a streaming service or a monthly box of socks.
The End of the Pre-Checked Box
The core of this legislation is a massive shift toward express informed consent. Under the new rules (SEC. 2), merchants can no longer treat your silence or inaction as permission to charge you. If they want to enroll you in an automatic renewal or continuity plan, they must first clearly and conspicuously disclose all material terms of the contract and get your affirmative agreement—a click, a check, a verbal 'yes'—that is separate from your agreement to the main contract terms (SEC. 5). What this means for you: no more hidden fees tucked away in paragraph 12, and definitely no more pre-checked boxes automatically opting you in to a recurring charge. They even have to keep verification of your consent for three years.
Free Trial Traps Get a Federal Overhaul
One of the most frustrating practices for consumers is the “free-to-pay conversion contract”—the dreaded free trial that automatically converts to a paid subscription. The Unsubscribe Act sets up a two-step notification system to tackle this (SEC. 2). First, before the introductory period even starts, the merchant must clearly detail the free period, the recurring charge amount, and the total cost for the next year. Second, and this is key, before the first charge hits after the trial ends, they have to send you another notification. This notice must remind you of the upcoming charge, restate the terms, and give you direct access to cancellation information. If you've ever forgotten about a trial subscription until the $50 charge showed up, this provision is designed to save your wallet.
Simple Cancellation: The Digital Exit Door
We all know the drill: signing up takes two clicks, canceling requires a 30-minute phone call and three transfers. This bill mandates that for contracts entered into online, merchants must provide a simple electronic cancellation mechanism, like a direct link to a cancellation form, that doesn't require you to jump through extra hoops (SEC. 2). If you signed up online, you should be able to cancel online, quickly and easily. For existing subscriptions, merchants also have to regularly send you a notification of the contract terms and, crucially, direct access to that cancellation information, with the timing set by the Federal Trade Commission (FTC).
Who’s Watching the Watchers?
The bill gives strong teeth to the regulators. Any violation of this Act is treated as an unfair or deceptive trade practice under the Federal Trade Commission Act (SEC. 3). The FTC is tasked with enforcing the law and creating the necessary rules to make it work. Furthermore, State Attorneys General get the green light to file civil lawsuits in federal court on behalf of their residents if they spot a violation. This dual enforcement mechanism means companies are going to have to be very careful about how they handle subscriptions, as they could face legal action from both federal and state authorities.
It’s important to note how this interacts with existing state laws. The federal law only overrides a state law if the state law directly conflicts with a specific provision in this Act (SEC. 4). If a state law offers greater protection to consumers, it stays on the books. However, if a state law sets a different deadline or timeframe for compliance than the federal law, that difference is considered a direct conflict and the federal rule takes precedence. This is designed to create a clear, unified standard for businesses while preserving existing strong consumer protections.