What companies are legally required to disclose before charging you again - and how to use your state's laws to get a refund when they don't.
At the federal level, the FTC's Negative Option Rule (significantly expanded in 2024) establishes minimum standards that apply to all subscription products sold to US consumers regardless of state:
Civil penalties for violations can reach $51,744 per violation. Importantly, individual consumers cannot sue under the FTC Act - but you can file complaints, and pattern complaints trigger enforcement actions.
Many states have enacted stronger protections that go beyond the federal baseline. California, New York, and a growing number of others give consumers direct private rights of action - meaning you can sue a company yourself if it violates the state's auto-renewal law.
California (Business & Professions Code §17600) is the gold standard. California's automatic renewal law requires: clear and conspicuous disclosure before enrollment, express affirmative consent, a simple online cancellation mechanism for online subscriptions, and - critically - a private right of action. If a California company violates this law, consumers can sue directly for restitution of all amounts paid, plus attorney fees. The law also holds that any subscription obtained without proper disclosure is an "unconditional gift" - meaning you can keep the product and are owed a refund. California's law applies to any company selling to California residents, regardless of where the company is headquartered.
New York (General Obligations Law §5-903) requires written notice of automatic renewal 15–30 days before the renewal date for annual subscriptions. Failure to provide this notice means the renewal is unenforceable - you can cancel and receive a full refund for the unauthorized renewal period. New York's AG has actively enforced this against major subscription companies.
Illinois, North Carolina, Oregon, and Vermont have enacted laws closely modeled on California's, with varying levels of private right of action and notice requirements.
| State | Law strength | Key requirement | Private right of action |
|---|---|---|---|
| California | Strong | Clear disclosure + online cancel + express consent | Yes - sue for restitution |
| New York | Strong | 15–30 day written notice before annual renewal | Yes (AG enforcement + private) |
| Illinois | Strong | Clear disclosure at point of sale; notice before renewal | Yes |
| Oregon | Strong | Modeled on California law; online cancel required | Yes |
| North Carolina | Moderate | Clear disclosure required; AG enforcement | Limited |
| Vermont | Moderate | Disclosure and cancel mechanism required | AG enforcement |
| Virginia | Moderate | Online subscriptions must be cancelable online | AG enforcement |
| Washington | Moderate | Clear disclosure; renewal notice for annual plans | AG enforcement |
| Colorado | Moderate | Disclosure before enrollment required | AG enforcement |
| Delaware | Moderate | Written notice 30 days before annual renewal | AG enforcement |
| Florida | Moderate | Notice required before renewal over $5 | Limited |
| Texas | Basic | Federal FTC baseline applies | No direct private action |
| Georgia | Basic | Federal FTC baseline applies | No direct private action |
| Ohio | Basic | Federal FTC baseline applies | No direct private action |
| All other states | Basic | Federal Negative Option Rule minimum | No direct private action |
California law applies to you even if the company isn't in California. If you are a California resident and a company sells you a subscription without proper disclosure or makes cancellation unreasonably difficult, California law applies - regardless of where the company is based or what their terms say about governing law.
Under the federal Negative Option Rule and most state laws, before enrolling you in any subscription, a company must clearly disclose:
These disclosures must be "clear and conspicuous" - not buried in terms of service, not in 6-point font below the fold, not disclosed only via email after enrollment. They must be visible and prominent at the point of enrollment.
If a company charged you at a price significantly higher than what was disclosed at enrollment (common with auto-renewing annual plans that discounted the first year), this is a potential violation regardless of whether it was buried in their terms.
If a company auto-renewed your subscription without proper disclosure or adequate notice, here's how to act on it:
Step 1: Document the violation. Screenshot or note: when you enrolled, what you were shown at enrollment, whether you received a renewal notice, and what you were charged. The key question is whether the material terms were clearly disclosed before you were charged.
Step 2: Contact the company first. Email or contact their support citing the specific legal violation - "Your auto-renewal did not comply with [state] auto-renewal law / the FTC Negative Option Rule. I am requesting a full refund of the [date] charge of $[amount]." Companies frequently comply with these requests to avoid escalation.
Step 3: Dispute with your bank. If the company won't refund, dispute the charge with your credit card issuer citing "unauthorized charge" or "charge not matching disclosed terms." Include your documentation of the disclosure failure. Banks side with consumers in these cases at high rates when documentation is clear.
Step 4: File a complaint. Filing with your state AG and the FTC doesn't get you money directly, but pattern complaints trigger investigations. In California and New York, you can consult a consumer protection attorney about a direct claim - attorney fee provisions in these state laws make them attractive for attorneys to take on contingency.
Charged without proper disclosure? Generate a dispute letter citing the specific legal violation to send to the company or your bank. Include your state's auto-renewal law by name for maximum leverage.
Get a dispute letter →