Disclaimer: This article is intended for informational purposes only and does not constitute legal advice. Please consult your legal counsel to ensure compliance with applicable laws.
Overview
If you’re selling subscriptions to customers in California, New York State, or anywhere in the U.S., it’s essential to understand key regulations that govern automatic renewal, customer consent, and cancellation requirements.
These laws are designed to protect consumers and ensure transparency in subscription practices. In addition to California and New York’s Automatic Renewal Laws (ARLs), the Federal Trade Commission (FTC) has introduced a new “Click-to-Cancel” Rule, effective July 14, 2025, that applies nationally.
We’ve compiled key highlights and best practices to help you align with these requirements and maintain a compliant experience for your customers.
Express Informed Consent
You must obtain clear, affirmative consent before charging a customer for a subscription. That means:
- Avoid pre-checked boxes for subscription signups.
- Obtain affirmative, informed consent to a subscription from your customers. This means that the If you offer both one-time purchases and subscriptions, clearly present both options, and not default to the subscription.
- Clearly disclose that a subscription will auto-renew unless cancelled, including:
- Pricing and billing frequency
- Terms of any trial or promotional period
- Cancellation and refund policies
FTC Note: The FTC emphasizes that all material terms must be disclosed clearly and prominently before the consumer agrees to the purchase.
Pre-Purchase Disclosures
Before completing a purchase, the disclosures must be:
- Clear and prominent
- Located near the final checkout button
- Inclusive of all the subscription terms, including:
- Renewal interval (cadence)
- Total cost
- Cancellation steps
- Duration of commitment (if any)
These disclosures must appear before the customer completes their purchase.
Shopify outlines these details within their checkout, including the details of the cancellation policy. Please ensure you've appropriately completed your cancellation process within Shopify:
Renewal Notices
For subscriptions that include a free trial, discounted introductory period, or auto-renew beyond 6 months, both states require:
A renewal notice to be sent in advance of the billing.
New York State requires this for subscriptions with promotional pricing or trial periods.
California requires notices:
- 3–21 days before renewal (for subscriptions lasting 31–180 days)
- 15–45 days before renewal (for subscriptions over 180 days)
These notices should include:
- Upcoming renewal date
- Price and terms
- Simple cancellation instructions
Best practice: With Skio's built-in notifications, we have a template called "Billing reminder (email)". Within this template, ensure you clearly display the product name, price, and terms (which refers to the billing interval). You can also add in a link to the customer portal as part of the cancellation instructions. We also recommend updating the "Days before" variable to be 14 to ensure this email is sent out 14 days before the renewal.
Easy Online Cancellation (Click-to-Cancel)
All of the referenced laws require that consumers can cancel online, in the same way they signed up. That means:
No need to call or email to cancel Provide a “Click-to-Cancel” option in your customer portal No forcing users to speak to a representative to confirm cancellation.
FTC Note: The FTC rule prohibits requiring users to navigate through unnecessary steps or click-through obstacles. The cancellation must be as simple as signing up, on the same platform.
Best practice: Within the Skio customer portal, ensure the Cancel option is set to be visible and outside of the More action list.
We also recommend being very clear with your customers if you are setting up minimum orders on the subscription level, as this will hide the cancel option until the minimum orders has been completed.
Final Thoughts
Subscription laws in California, New York, and now federally under the FTC are evolving to improve transparency, customer autonomy, and trust. Skio helps you stay compliant, but you are responsible for ensuring your setup meets the legal obligations in each jurisdiction where you sell.
Need help configuring anything mentioned above? Our support team is here to assist.
Reminder: This guide is not legal advice. Please consult your legal team to ensure your subscription experience is compliant in your customer’s jurisdiction.
Links to relevant laws:
- California ARL – Civil Code §17600–17606
- New York ARL – General Business Law §527
- New York ARL – Promotional Pricing Addendum §527-a
- FTC “Click-to-Cancel” Final Rule Summary (FTC.gov)