The Unsubscribe Act of 2025 strengthens consumer protections against "negative option" charges—recurring payments that continue unless customers actively cancel, such as subscription services or free-to-paid trials. The bill requires merchants to clearly disclose all contract terms and obtain explicit consent from consumers before charging them, separate from initial purchase agreements. Merchants must also provide customers with a simple, easy cancellation mechanism using the same method used to sign up (for example, online if the subscription was purchased online), keep records of consent for three years, and send regular reminders about upcoming charges with cancellation options. The Federal Trade Commission will enforce the law with the same authority it has under other consumer protection statutes, and state attorneys general can also bring enforcement actions on behalf of residents. The law applies to all types of negative option contracts, including automatic renewals, continuity plans, and free-to-paid conversions. The legislation takes effect one year after enactment, applying to contracts entered into or amended after that date.
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