Unsubscribe Act of 2025

Bill Summary: Unsubscribe Act of 2025 (H.R. 7048)

Overview

The Unsubscribe Act of 2025 is a consumer protection bill designed to eliminate "dark patterns" and deceptive practices associated with negative options. A negative option is any agreement where a consumer's silence or failure to take an action (such as canceling a trial) is interpreted by the seller as consent to be charged for goods or services.

The primary intent of the bill is to ensure that consumers are not trapped in recurring payments or subscriptions without their explicit, informed consent and that canceling such services is as easy as signing up for them.

Key Provisions

1. Strict Consent Requirements

The bill prohibits merchants from charging a consumer via a negative option unless the merchant:
* Discloses Material Terms: Clearly and conspicuously discloses all terms before payment.
* Obtains Express Informed Consent: Requires an affirmative action (e.g., checking an unchecked box or clicking a confirmation button).
* Prohibits "Dark Patterns": Consent cannot be inferred from inactivity, silence, or pre-checked boxes. It also forbids user interfaces designed to subvert user autonomy.
* Record Keeping: Merchants must maintain proof of consent for at least 3 years.

2. "Free-to-Pay" Conversion Protections

For contracts featuring an introductory period (free trials or discounted offers), merchants must:
* Provide the cost of the introductory period and the amount of the recurring charge that will follow.
* Provide the total cost for the first 12 months.
* Pre-charge Notification: Notify the consumer before the first full-price charge occurs, providing the terms and a direct link to cancel.

3. Simplified Cancellation

The bill mandates a "simple mechanism" for ending subscriptions:
* Online Merchants: Must provide a direct link to an electronic cancellation form that does not require additional non-electronic steps (e.g., requiring a phone call to cancel an online sign-up).
* Non-Online Merchants: Must provide a cancellation method that is as simple as the method used to sign up.

4. Renewal and Notification Limits

• Term Limits: Automatic renewals cannot exceed the length of the original preliminary period without new express informed consent.
• Ongoing Notices: Merchants must provide notifications of contract terms and cancellation access at least annually.
• Deadline Alerts: If there is a specific window to cancel without charge, merchants must notify the consumer 2 to 7 days before that window closes.

Impact and Enforcement

Who is Affected?

• Merchants of Record: Any person or business entering into financial contracts with consumers across all media (internet, phone, mail).
• Consumers: All U.S. consumers utilizing subscription services, "continuity plans," or free trials.

Enforcement Mechanism

• Federal Trade Commission (FTC): Violations will be treated as "unfair or deceptive acts or practices" under the FTC Act. The FTC is authorized to promulgate necessary rules to implement the Act.
• State Attorneys General: State officials may bring civil actions on behalf of their residents.
• Preemption: Federal law will preempt state laws only if they conflict; however, state laws providing greater protection to consumers will remain in effect.

Timeline

• Effective Date: The Act applies to contracts entered into or amended one year after the date of enactment.