Auto-Renewing Subscriptions: Cancellation Basics

Streaming services, apps, meal kits, gyms, software, and beauty products are often sold as subscriptions that renew on their own. That can be convenient when you want the service. It becomes a problem when you did not realize you signed up, when a "free" trial turned into monthly charges, or when canceling seems impossible. This guide covers the basics, drawing on consumer guidance from the Federal Trade Commission (FTC).

Three terms worth knowing

Free trial. You get a product or service free for a set period. Usually you give a card number up front, so the company can start charging if you do not cancel in time.

Auto-renewal. A subscription that renews automatically at the end of each term unless you cancel.

Negative option. The FTC's guide to free trials, auto-renewals, and subscriptions describes this as being automatically billed for something when you did not specifically say not to bill you. In the FTC's words, the business takes your silence as permission to charge you. Problems happen when the business does not clearly explain that billing will continue, or makes it difficult or impossible to cancel.

Before you sign up

The FTC suggests a few checks before giving your card number for a trial or subscription:

• Find the terms. They should tell you exactly what you are agreeing to, how long the trial lasts, and how and when to cancel.
• Look for pre-checked boxes. A box already checked for you might give permission to keep charging you or to share your information. Uncheck anything you do not agree with.
• Know how to cancel. The FTC says businesses must tell you how to cancel before they get your card information, and that businesses must make canceling simple for you.
• Be wary of "free" offers with fees. If you must pay shipping or another fee to get a "free" trial, the FTC points out that it is not really free.
• Research the company. Search its name with words like "scam" or "complaint."

After you sign up, mark your calendar with the cancellation deadline and watch your card statements.

Renewal notices: what to watch for

Renewal notices can help, but the FTC warns about a few traps:

• A renewal notice for a subscription you already agreed to auto-renew is a reminder, not a bill. It should not ask for your card information. If it does, stop and read carefully.
• The renewal price may be higher than what you paid before, especially after a promotional rate ends.
• Scammers sometimes send fake renewal notices for subscriptions you never had. Do not call numbers or click links in those messages. Contact the company using contact details you know are correct.

How to stop a subscription

Based on the FTC's guidance:

1. Use the company's cancellation process. Follow its instructions if it has them.
2. Keep proof. Save a copy of your cancellation request and notes about any conversations, including dates and names.
3. Watch your statements. Check for charges after you canceled.
4. Dispute charges if needed. If a company keeps charging you after you canceled, or charged you without your consent and will not refund, you can dispute the charge with your credit or debit card company. This is often called a chargeback. You can usually start online or by calling the number on the back of your card.
5. Follow up in writing. The FTC recommends a letter to the card company's address for billing disputes or errors, ideally by certified mail with a return receipt.
6. Save your records. Letters, notes, and emails can help if questions come up later.

Where to report problems

If you have trouble canceling, or you were charged for a subscription you did not agree to, the FTC says to report it to the FTC at ReportFraud.ftc.gov and to your state attorney general. States can also have their own automatic renewal laws with additional requirements for businesses. Your state attorney general's office is a good place to ask about the rules where you live.

When a lawyer may help

Many subscription problems can be solved by canceling, disputing a charge, and reporting the business. A lawyer may be worth calling if a large amount of money is involved, if a business is trying to collect money you do not believe you owe, or if you run a business and need to make sure your own subscription offers follow federal and state rules. Our business law practice page describes the kinds of matters business lawyers often handle.

For free or low-cost legal help, many people start with local legal aid programs and lawyer referral services.

Frequently asked questions

Can a company make it hard to cancel?

The FTC says businesses must make canceling simple and must tell you how to cancel before getting your payment information. If you run into barriers, report the business to the FTC and your state attorney general.

What is a chargeback?

It is a dispute you file with your credit or debit card company over a charge you did not authorize or that the merchant would not refund. Start online or by phone, then follow up in writing.

I got a renewal notice for something I never ordered. What should I do?

Do not use the phone number or links in the message. The FTC warns these can be scams. Contact the company through information you know is correct.

Do states have their own subscription rules?

Some states have automatic renewal laws. Check with your state attorney general's office for the rules where you live.

Related: Browse guides on legal topics.

This page is general information, not legal advice. Laws change and every case is different — talk to a licensed attorney about your situation.