Summary#
The Unsubscribe Act of 2025 sets rules for "negative options" — offers where silence or inaction by a consumer is treated as agreement (for example, automatic renewals or free trials that convert to paid). Key requirements in the bill include:
- Merchants must clearly and conspicuously disclose all material contract terms before charging or taking payment through a negative option.
- Merchants must obtain the consumer’s express informed consent before charging a payment method for a negative option. Merchants must keep proof of that consent for at least 3 years unless they show the transaction cannot be completed without such consent.
- After a preliminary or introductory period, merchants may not automatically renew a negative option for a longer period than that preliminary period unless they obtain new express informed consent.
- For online negative option contracts, merchants must provide a simple cancellation mechanism, such as a direct link to an electronic cancellation form. For non‑electronic contracts, cancellation must be as simple and by the same means used to enter the contract, or another simple method if not practicable.
- For free-to-pay conversion contracts (introductory free or discounted period that later becomes paid), merchants must disclose terms and get express consent before completing the financial transaction and must notify consumers before the first post-introductory charge with access to cancellation information.
- Merchants must provide regular notifications of contract terms and cancellation methods at intervals set by the Federal Trade Commission (FTC), at least annually. If there is a limited window to cancel without extra charges, the merchant must also notify consumers 2 to 7 days before the last day to cancel.
- Violations are treated as unfair or deceptive acts or practices under the FTC Act. The FTC enforces the law, may issue rules, and can pursue civil actions. State attorneys general or state officials may also sue on behalf of residents, with notice to the FTC and certain limitations when the FTC is already taking action.
- The Act does not preempt state laws that provide greater consumer protection but does preempt conflicting state law. The bill includes definitions for terms such as negative option, express informed consent, automatic renewal contract, continuity plan, and preliminary period.
- The Act applies to contracts entered into or amended after one year from the date of enactment.
What it means for you#
If you buy goods or services with automatic renewals, free trials that convert to paid, or similar arrangements, this bill would require sellers to:
- Tell you the main contract terms clearly before charging you.
- Get a clear, separate affirmative action from you (like clicking a confirmation box) before charging your card for ongoing payments.
- Give you an easy, electronic way to cancel online agreements and a simple cancellation method for non‑online agreements.
- Send regular reminders of the terms and how to cancel, including a reminder shortly before the last day to cancel when applicable.
Expenses#
No publicly available information.
Proponents' View#
The bill’s stated purpose is to increase consumer protection related to negative options. The bill requires clearer disclosures, express informed consent, simple cancellation methods, and FTC enforcement to protect consumers from unexpected or hidden recurring charges.
Opponents' View#
No publicly available information.