Update – 7/8/2025: On July 8, 2025, the U.S. Court of Appeals for the Eighth Circuit vacated the FTC’s Negative Option Rule in its entirety, meaning that the Rule will not go into effect as scheduled on July 14, 2025. ZwillGen is continuing to monitor the case as it develops.
Legislators and regulators have shown a keen interest in regulating businesses that sell auto-renewing subscriptions more stringently in recent years, and this interest shows no signs of waning. The nationwide baseline is set to evolve in mid-July 2025 when changes to federal law go into effect. Concurrently, states continue to impose new and varied obligations on subscription businesses, making compliance an ever-moving target.
Federal Developments
Following a two-month delay in enforcement, amendments to the Federal Trade Commission’s (FTC) Negative Option Rule go into effect on July 14, 2025. Our earlier blog post summarizes the Rule, which will require businesses to obtain separate, affirmative consent to the “negative option feature” of a subscription purchase—a requirement that goes beyond any existing state law obligations.
Though the Negative Option Rule amendments were issued by the FTC during the previous presidential administration, the current FTC has demonstrated its continued commitment to enforcing consumer protection principles in the context of auto-renewing subscriptions. In March, the agency filed a brief defending the Negative Option Rule amendments before the U.S. Court of Appeals for the Eight Circuit, where mutliple lawsuits challenging the Rule have been consolidated. And in April, the FTC sued rideshare and delivery company Uber under the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA) over its subscription-related billing and cancellation practices.
State Law Changes
In addition to federal developments, states continue to actively regulate renewing subscriptions.
California
California’s amendments (AB-2863) to its existing auto-renewal law take effect on July 1, 2025. Most notably, the amendments clarify that the law’s existing prohibition on “obstructing or delaying” a consumer’s ability to cancel does not prohibit a business from presenting a discount offer, retention benefit, or information regarding the effects of cancellation if the business prominently and proximately displays a button that immediately effectuates cancellation on the same page. Additional changes imposed by these amendments include:
- Requiring “express” affirmative consent to the automatic renewal offer terms (though it is not clear how express affirmative consent differs from the state’s existing requirement to obtain affirmative consent);
- Requiring notice 7-30 business days prior to a price increase, even if the consumer previously agreed to the increase; and
- Requiring businesses to allow consumers to cancel by the same medium as they signed up.
Arkansas
Arkansas is following hot on California’s heels. The state’s first auto-renewal law (HB1820) will take effect August 3, 2025. The law largely mirrors the California auto-renewal law in all respects, including the amendments listed above.
Colorado
Colorado similarly amended its existing auto-renewal law via SB 25-145. The bill (1) broadens the existing definition of “consumer” to arguably apply to B2B subscriptions, and (2) requires implementation of a “one-step online cancellation link” that prohibits obstructing or delaying the consumer’s ability to cancel. Like Arkansas and California, the amended law will allow businesses to present a discount offer, retention benefit, or information regarding the effects of cancellation if the business prominently and proximately displays a button that immediately effectuates cancellation on the same page. The amendments to Colorado’s cancellation provision will take effect on August 6, 2025, while the broader definition of “consumer” will take effect on February 16, 2026.
Massachusetts
The Final Regulations issued by the Massachusetts Attorney General will enter into effect on September 2, 2025. For details on the obligations imposed by the Final Regulations, including unique obligations for point of sale disclosures and notices required for shorter subscription terms, please see our previous blog post.
New York
New York passed omnibus bill S-3008. Part W of the bill amends one of New York’s existing auto-renewal statutes. The amendments will impose two notable requirements:
- The amendments will require businesses that seek to increase a subscription price for New York consumers to either (a) obtain consumers’ affirmative consent to the price increase, or (b) permit consumers to cancel within at least 14 days after their first charge at the new price for a pro rata refund. This requirement does not apply to price increases to which a consumer previously agreed.
- The bill will also require businesses to make point of sale disclosures before the consumer’s billing information “has been requested.” This may create compliance challenges on two fronts—first, for businesses that have consumers’ billing information stored on file; and second, because other auto-renewal laws also require that point of sale disclosures be located immediately adjacent to the consent feature.
Part W will take effect on November 5, 2025.
Maine
Maine enacted SP 650, which amends Maine’s existing auto-renewal law to seemingly require a consumer’s separate consent to the automatic renewal provision of a subscription. SP 650 will apply to agreements entered into or renewed on or after January 1, 2026.
Maryland
Like Arkansas, Maryland enacted its first auto-renewal statute (Ch. 204), taking effect on June 1, 2026. Most notably, the law will require:
- Notices before the end of free trial or discount periods lasting more than 14 days; and
- Providing a “clear and conspicuous” alternative cancellation option for consumers who are unable or unwilling to cancel via an online account.
Connecticut
Connecticut adopted SB 3, which amends one of Connecticut’s existing auto-renewal laws to require annual renewal reminders regardless of subscription term length. The bill also imposes strict requirements for cancellation by phone, including:
- Requiring businesses to process voicemails requesting cancellation within one business day; and
- Prohibiting businesses from informing a subscriber about discount offers, retention benefits, or the effects of cancellation without first informing the subscriber that they may cancel anytime. If the consumer clearly states that they want to “cancel,” the business must process the cancellation immediately.
The Connecticut amendments will enter into effect on July 1, 2026.
