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

We sell month-to-month subscriptions nationwide with a cancel-anytime option. Do we still need to follow auto-renewal regulations, or does flexibility exempt us?

Answer

Even if your online business offers month-to-month subscriptions with a cancel-anytime policy, you'll likely still need to comply with federal and state auto-renewal laws. These rules — sometimes called "negative option" laws — are designed to protect consumers from being charged for services they didn't clearly agree to continue.

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.

Pro Reviewed
Published on 11/19/2025
Reviewed by Pamela K. Streng, Esq.

At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced attorneys to ensure legal accuracy.

Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask an Attorney.

Laura Bojart
Laura Bojart
Editorial Researcher and Copywriter

Laura Bojart is an SEO copywriter and editor at Rocket Lawyer. She researches legal and business topics and translates complex ideas into clear, practical content for everyday readers. With her background in journalism and endless curiosity, she approaches each subject by asking the questions readers are likely to have first, making legal information approachable and easy to understand even to those with no legal background.