Unsubscribe Act of 2025

The Unsubscribe Act of 2025 regulates "negative option" billing practices, where companies automatically charge consumers unless they actively opt out. It requires merchants to clearly disclose all terms before charging, obtain explicit consumer consent, and provide an easy online cancellation method. The bill specifically targets contracts like free-to-pay conversions (e.g., "free trial" followed by automatic charges), mandating clear upfront terms about pricing and renewal. Consumers directly benefit through greater transparency and control, while merchants must comply with new disclosure, consent, and cancellation rules starting one year after enactment. Enforcement falls to the Federal Trade Commission and state attorneys general.