State statutes require clear and conspicuous disclosure of renewal terms before purchase, affirmative consent, acknowledgment, and easy cancellation. California's provisions have generated the most litigation.
Federal click-to-cancel rulemaking addresses similar conduct.
Alternative Names:
Auto-Renewal Claim|Subscription Renewal Claim
Why it Matters?
Cancellation mechanism requirements are where most violations occur, since statutes requiring cancellation by the same method used to enroll are violated by online sign-up paired with telephone-only cancellation. Disclosure proximity requirements are separately technical, mandating that renewal terms appear in visual proximity to the consent mechanism rather than in linked terms. Both are correctable before litigation arrives.
Frequently Confused with
Related terms
Frequently asked questions
Where do most violations occur?
What is the disclosure requirement?
