Automatic-Renewal and Subscription Laws
The FTC's click-to-cancel rule was vacated in 2025, leaving strict state laws — led by California — to govern subscriptions and free trials you promote.
If you promote subscriptions, memberships, software, streaming, boxes, or free trials, automatic-renewal laws are directly relevant to you and to the merchants you send customers to. These laws govern “negative option” offers — arrangements where a customer’s inaction is treated as agreement to continued charges. Getting them wrong is a leading source of consumer complaints, chargebacks, and lawsuits.
The federal picture in 2026
At the federal level, the FTC issued a revised Negative Option Rule — widely called the “Click-to-Cancel” rule — in 2024. In July 2025, however, the Eighth Circuit Court of Appeals vacated that rule on procedural grounds, days before its compliance deadline, and the FTC has signaled it may pursue a revised version. As a result, there is no single federal click-to-cancel rule in force as of 2026, though the FTC can still pursue deceptive negative-option practices under existing law, and state laws remain fully in effect.
State law fills the gap
With the federal rule vacated, state automatic-renewal laws are the operative regime. California’s is the strictest and, because of its market size, effectively sets a national floor for many businesses.
California’s Automatic Renewal Law (2025 amendments)
California amended its Automatic Renewal Law effective July 1, 2025, adding requirements that apply to contracts entered into, amended, or extended on or after that date. Key obligations include:
- Express affirmative consent to the automatic-renewal term specifically — not just to the overall agreement.
- Clear cost and frequency disclosure before billing information is confirmed.
- Easy online cancellation — a prominently located, continuously displayed link or button to cancel (“click to cancel”).
- Annual renewal reminders in the same medium used to sign up, stating the product, the charge amount and frequency, and how to cancel.
- Advance notice of price changes, clear and conspicuous, with cancellation instructions.
- A prohibition on dark patterns that undermine the consumer’s ability to consent or cancel.
Why it matters to affiliates
You are usually not the party billing the customer — the merchant is — but automatic-renewal problems still reach affiliates in two ways. First, if your content misrepresents a subscription offer (for example, describing a “free” trial without its auto-conversion terms), that is a deceptive practice you are responsible for under the FTC and state UDAP laws. Second, promoting merchants with non-compliant renewal practices exposes you to reputational harm, chargebacks, and program instability.
Practical guidance
- Describe subscription and free-trial offers accurately, including that they auto-renew and at what price.
- Do not bury or omit the renewal terms in your promotional content.
- Favor merchants whose checkout and cancellation practices are compliant.
- Keep your claims about “free” offers consistent with the actual terms.
Related: California compliance, the FTC rules, and state UDAP statutes.
Authoritative sources
Last reviewed July 2026. This page is general educational information, not legal or tax advice.