This article is for informational purposes only and does not constitute legal advice. Consult with a qualified attorney to evaluate your specific situation.
The Short Answer
Yes, you may be able to sue—or join a class action—if a company used deceptive practices to trap you in an unwanted subscription. The FTC’s new “click to cancel” rule requires companies to make cancellation as easy as signup, and many states have automatic renewal laws with private rights of action. Violations can entitle you to refunds and additional damages.
What Makes a Subscription Trap Illegal?
Not every auto-renewal is illegal, but many common practices violate consumer protection laws:
- Hidden auto-renewal terms: Burying the fact that a free trial converts to a paid subscription in fine print
- Difficult cancellation: Requiring phone calls, long hold times, or in-person visits to cancel when signup was online
- Dark patterns: Using confusing website design to trick users into subscriptions or prevent cancellation
- Missing disclosures: Not clearly stating the renewal price, frequency, or how to cancel before charging
- Negative option marketing: Interpreting silence or inaction as consent to charges
- Ignoring cancellation requests: Continuing to charge after a customer attempts to cancel
The FTC’s “Click to Cancel” Rule
The Federal Trade Commission finalized its Negative Option Rule (commonly called “click to cancel”) to combat subscription traps. Key requirements include:
- Easy cancellation: Companies must provide a cancellation method that’s as easy as the signup process
- No forced interactions: If you signed up online, you must be able to cancel online—no mandatory phone calls
- Clear disclosure: All material terms must be disclosed clearly before obtaining billing information
- Consent verification: Companies must obtain express informed consent before charging
- Confirmation required: Businesses must send confirmation of the negative option agreement
Industries With the Worst Subscription Traps
Gyms and Fitness
Notoriously difficult cancellation policies, often requiring certified mail, in-person visits, or calling during limited hours. Many gyms continue charging after cancellation requests.
Streaming Services
Free trials that auto-convert, bundled subscriptions that are hard to unbundle, and price increases without clear notice.
Software and Apps
Annual renewals that charge hundreds of dollars with minimal warning, and mobile apps that make canceling through the app store confusing.
News and Media
Promotional rates that skyrocket after the initial period, with cancellation requiring phone calls and retention specialist conversations.
Health and Beauty Boxes
“Free” product offers that sign you up for recurring shipments, with cancellation buried in account settings.
Dating Apps
Premium subscriptions with auto-renewal enabled by default and cancellation requiring multiple steps.
Major Subscription Trap Lawsuits
Regulators and consumers have taken action against numerous companies:
- Amazon Prime: FTC sued Amazon alleging the company enrolled consumers in Prime without consent and made cancellation intentionally difficult through a process internally called “Iliad” (after the long Greek epic)
- Adobe: FTC sued over allegedly hiding early termination fees and making cancellation difficult for annual subscription plans
- LA Fitness: Multiple class actions over cancellation policies requiring certified mail and continued billing
- SiriusXM: Settled class action over difficult cancellation process and unclear renewal terms
- ABCmouse: $10 million FTC settlement for making cancellation difficult and continuing to charge after cancellation
State Automatic Renewal Laws
Many states have their own subscription laws, some stronger than federal rules:
California (ARL)
California’s Automatic Renewal Law is one of the strongest. It requires clear disclosure of auto-renewal terms, affirmative consent, acknowledgment/confirmation, and an easy online cancellation method. Violations can result in the subscription being deemed an unconditional gift—meaning you may be entitled to a full refund of all charges.
New York
Requires clear disclosure and easy cancellation. The state actively enforces against violators.
Illinois
Automatic Contract Renewal Act requires written notice before renewal and provides consumers with a private right to sue.
Other States
Virginia, Oregon, Vermont, North Carolina, Georgia, Florida, and many others have automatic renewal laws with varying requirements.
Signs You’ve Been Trapped
- You were charged after a “free trial” you didn’t realize would convert
- You can’t find a way to cancel online even though you signed up online
- Cancellation requires calling during limited business hours
- You’re transferred multiple times or kept on hold when trying to cancel
- You’re offered discounts or pressured to stay when you try to cancel
- You were charged after you thought you canceled
- The renewal price is higher than what you originally agreed to
- You weren’t notified before an annual renewal charge
Your Legal Options
Dispute the Charges
Contact your credit card company or bank to dispute unauthorized charges. Under the Fair Credit Billing Act, you have 60 days from the statement date to dispute billing errors. Recurring charges you didn’t authorize may qualify.
Demand a Refund
Write to the company citing the specific law they violated (state ARL, FTC rules) and demand a full refund. Companies often refund rather than risk litigation.
File Regulatory Complaints
Report to the FTC (reportfraud.ftc.gov), your state attorney general, and the Better Business Bureau. Complaints build cases for enforcement action.
Small Claims Court
For amounts under your state’s limit (typically $5,000-$10,000), you can sue without a lawyer. Bring documentation of the deceptive practices and your damages.
Join or Start a Class Action
Search for existing class actions against the company. If none exists and many consumers are affected, consult with a consumer rights attorney about starting one.
What You Could Recover
- Full refund: All subscription charges, potentially from the beginning
- Statutory damages: Many state laws provide minimum damages per violation
- California bonus: Under California’s ARL, goods/services provided without proper disclosure may be deemed an “unconditional gift”—meaning full refund rights
- Attorney’s fees: Many consumer protection laws require the company to pay your legal fees if you win
- Injunctive relief: Court orders requiring the company to fix its practices
How to Protect Yourself
- Use virtual credit cards: Services like Privacy.com let you create single-use or limited cards for trials
- Set calendar reminders: Note when free trials end and when annual subscriptions renew
- Screenshot everything: Capture signup screens, terms, and cancellation attempts
- Use email search: Regularly search your email for “subscription,” “renewal,” and “charged”
- Review bank statements: Check monthly for recurring charges you don’t recognize
- Read the fine print: Before any free trial, check for auto-renewal terms
Frequently Asked Questions
Can I get a refund if I forgot to cancel a free trial?
Possibly. If the company didn’t clearly disclose the auto-renewal terms or make cancellation easy, you may be entitled to a refund under state or federal law—even if you technically “agreed” to buried terms.
What if I clicked “agree” to the terms of service?
Clicking agree doesn’t waive your rights if the terms weren’t properly disclosed. Courts have found that burying material terms in lengthy agreements that consumers don’t read isn’t valid consent.
How far back can I get refunds?
It depends on your state’s statute of limitations and the specific law violated. Some consumers have recovered years of charges, especially under California’s ARL.
Can I sue if the company eventually let me cancel?
Yes. If the cancellation process was unreasonably difficult—requiring multiple calls, long hold times, or retention tactics—you may have a claim even if you eventually succeeded in canceling.
What about subscriptions through Apple or Google?
App store subscriptions have their own cancellation processes. However, if the app developer used deceptive practices to get you to subscribe, you may have claims against them regardless of how the payment was processed.
The Bottom Line
Subscription traps are increasingly being recognized as the deceptive practices they are. Federal and state regulators are cracking down, and consumers have real legal options to recover their money.
If you’ve been trapped in an unwanted subscription, document everything, dispute the charges with your bank, file complaints with regulators, and consider consulting a consumer rights attorney—especially if you’re in a state like California with strong automatic renewal laws.
