Unsubscribe Act of 2025

The Unsubscribe Act of 2025 aims to tighten consumer protections around negative option arrangements—contracts or offers where a consumer’s silence or inaction is interpreted as acceptance or renewal. The bill requires clear disclosure of all material terms before any payment, mandates express informed consent prior to charging, limits automatic renewals without fresh consent after a initial period, and obligates easy, accessible cancellation options for online and non-online purchases. It also imposes specific protections for free-to-pay conversion contracts (where a free introductory period leads to ongoing charges) and requires ongoing notifications to consumers about contract terms and cancellation options. The FTC would enforce the new rules, with state attorneys general able to sue on behalf of residents as well. The act would preempt only conflicting State laws and would allow stronger state protections. It becomes effective one year after enactment. In practical terms, the bill would push online and offline merchants to be far more transparent about negative option offers, obtain explicit consent before charging, provide straightforward ways to cancel, and regularly remind customers about their rights and costs throughout the contract term. Businesses using automatic renewals and similar “negative option” schemes would face new requirements and potential penalties for noncompliance.