Introduction
In 2025, subscription traps have become one of the most common consumer complaints in the United States. From streaming platforms to fitness apps, many users unknowingly enroll in auto-renewing plans that are difficult to cancel. Understanding your consumer rights under the new federal and state laws can help prevent costly and frustrating experiences.
Key Takeaways
The Federal Trade Commission (FTC) now enforces stricter rules on deceptive subscription practices. Under the new Click-to-Cancel Rule, companies must provide consumers with an easy and immediate way to cancel recurring subscriptions, both online and offline. Many states have adopted similar laws to enhance consumer protection.
Legal Basis
According to the Federal Trade Commission (FTC), subscription traps are considered a form of “negative option marketing,” which is prohibited when companies fail to clearly disclose renewal terms or make cancellation unnecessarily difficult. The FTC’s 2025 enforcement update mandates transparency in pricing, renewal frequency, and cancellation processes.
State-by-State Differences
While the FTC governs federal-level enforcement, states such as California, New York, and Washington have implemented their own stricter versions of subscription laws. For example, California’s Automatic Renewal Law requires explicit consent from consumers before charging recurring fees, while New York mandates annual renewal reminders for long-term subscriptions.
Real-World Cases
In early 2025, a major streaming service faced a $20 million fine for misleading consumers about cancellation steps. The FTC found that users were forced through multiple “retention screens” before they could successfully terminate their plans. This case set a nationwide precedent emphasizing the right to an accessible cancellation option.
Step-by-Step Actions
1. Review the Terms: Before subscribing, check whether the plan includes automatic renewal clauses.
2. Document the Process: Take screenshots of the sign-up and cancellation steps for potential disputes.
3. Use Official Channels: Always cancel through the company’s official website or app to ensure a valid record.
4. Check Email Confirmations: Verify you received a cancellation confirmation notice.
5. Report Violations: File a complaint with the FTC or your state attorney general if you face unreasonable obstacles.
Why This Matters
Subscription traps drain billions of dollars from consumers each year. Many people, especially the elderly or those with limited English proficiency, are unaware of their cancellation rights. Strengthening awareness of these protections empowers consumers and encourages fairer business practices across digital markets.
FAQ
Q1: What is a subscription trap?
A subscription trap is a service that enrolls consumers into ongoing payments without clear consent or makes it difficult to cancel.
Q2: How do I cancel recurring subscriptions under the new 2025 rules?
Under the FTC’s new Click-to-Cancel Rule, companies must offer a simple and immediate way to cancel subscriptions online.
Q3: What should I do if a company refuses to cancel my subscription?
You can file a complaint directly on the FTC’s complaint portal or contact your state consumer protection agency.
Summary: In 2025, subscription traps are under increased legal scrutiny. Knowing your rights, documenting every step, and understanding the FTC’s Click-to-Cancel Rule are essential to protecting yourself from unwanted charges.