Does my online business have to follow auto-renewal laws?

Your cancel-anytime feature is consumer-friendly, but it doesn't remove all compliance requirements. Most laws still expect businesses to do three key things:

• Disclose terms clearly: Let customers know upfront that the subscription renews automatically, how often it renews (monthly in your case), and the price.
• Get affirmative consent: Customers must agree to the renewal terms before completing checkout. A checked box or click-to-accept step often works here.
• Make cancellation simple: Your cancel-anytime setup helps, but the process also needs to be easy to find and use — without hidden hurdles.

On the federal level, the Restore Online Shoppers' Confidence Act (ROSCA) applies to online subscriptions. It requires clear disclosure, informed consent, and an easy way to stop recurring charges. On top of that, many states — like California and New York — have their own stricter rules, which can include renewal notices or specific cancellation options.

The short answer: yes, you still need to follow auto-renewal laws. Meeting these standards not only keeps you compliant but also builds trust with your customers.

What to consider in your specific situation

While the general rules apply to most online subscriptions, your exact obligations can vary. Factors that may change your requirements include:

• The state where your business is based and the states where your customers live.
• How your subscription checkout and cancellation flow are currently designed.
• The exact wording you use to explain renewal, pricing, and cancellation terms.
• Whether you plan to raise prices or change terms at renewal.
• The size and scope of your customer base and how much regulatory scrutiny you face.

Because every business is different, it can help to learn more about how auto-renewal rules apply to your setup. You can ask your own question in Rocket Copilot to get legal information tailored to your situation, or connect with a Legal Pro to learn more about your options.