The average US adult spends more than $1,300 a year on subscriptions, according to CNET’s latest subscription survey. And they waste an average of $252 a year on unused subscriptions. That’s more than last year’s survey, when the average annual waste was $1,080, and we wasted less — $204 a year. One way to reduce those costs is to cancel services you no longer need, but getting rid of them isn’t always easy. Some companies make it difficult for customers to cancel memberships.
Last year, the Federal Trade Commission’s Click to cancel the rule was struck down, which would have prohibited fraudulent subscription cancellation procedures and required companies providing subscription services to make cancellations as easy as subscriptions. A court halted that in July because the FTC did not conduct a preliminary analysis — required for regulations that could have an economic impact of more than $1 million. There is a possibility that it may change in the future.
“The FTC is currently working on a revised Click to Cancel rule, and the Director of the FTC’s Bureau of Consumer Protection, Chris Mufarriage, I understand, intends to create uniform traffic rules across the country,” Brian Goodrich, managing attorney at Holland & Knight, told CNET.
However, the FTC doesn’t stop there. Some legislatures prohibit companies from deceptive unsubscribe practices.
Check your country’s consumer protection laws
If you are faced with misleading subscription cancellation or renewal processes, first check what state laws apply to consumer protection and subscriptions. I recommend that you check your state’s legal website and search for related terms of actions or related statutes.
For example, some states have automatic renewal laws that prevent a company from automatically renewing your subscription without your consent. Some ARLs require specific renewal details, such as duration, re-billing amount, cancellation policy and cancellation method. Some state laws, such as California, also require a renewal permit.
Maryland enacted a similar law in June 2026 to combat poor subscription renewal and cancellation rates. The law, HB0107, requires companies that provide automatic renewals to allow Maryland residents to cancel renewals in a cost-effective, timely and convenient manner before they are due to renew. And Colorado’s 2025 law, SB25-145, requires online cancellation, consumer consent and any reservation offers to include a cancellation link, Goodrich said. Connecticut, Massachusetts and New York are among the states with automatic renewal laws.
The FTC is cracking down on deceptive registration practices
Although the FTC’s Click to Cancel rule is no longer in effect, there is another rule that has been in place since 2010 that the FTC uses to stop businesses from undercover registration practices — Restoring Consumer Confidence on the Internet.
“ROSCA is important here because many of today’s subscription issues involve “negative options,” meaning the company takes the consumer’s silence or failure to cancel as permission to continue charging,” Goodrich said. “ROSCA is less of a blanket FTC rule because it applies to online payments, but it remains a powerful tool to enforce online subscriptions, free trials, automatic renewals, and other recurring billing schemes.”
ROSCA says companies must list prices, payment date and cancellation policy before receiving your credit card information for a service (including a subscription). Before confirming the purchase, the company must provide you with a way to confirm the registration. The company is also prohibited from sharing consumer information with third parties.
The most important part of ROSCA is Section 5 of the Act. This prevents unfair or deceptive practices or actions, Goodrich said. “The FTC has interpreted ROSCA’s ‘easy cancellation’ requirement to mean that cancellation must be at least as easy to use as the process a consumer uses to sign up,” Goodrich said. Those who violate this act face penalties. Under this law, the FTC has taken action against Uber and Chegg, as examples. And Article 6 gives the state’s attorney general the authority to enforce the law within their state, too.
Read more: Don’t Keep Paying For Expensive Streaming Services. Here’s How to Cancel
Take these steps to stop subscription scams
Even if you don’t see a state law your employee has broken, it’s best to take action to raise awareness and stop deceptive practices. Here are a few steps you can take.
- File a complaint with your state’s attorney general. The FTC has a list of consumer protections, a complaint form and contact information for each state’s attorney general on its web page. You can also file a complaint online with the FTC.
- If you are charged for a subscription that you canceled, did not subscribe to, or was still charged after cancellation, check to see if your credit card has purchase or fraud protection to receive a refund for the unauthorized purchase.
- If you have trouble canceling online, call the company’s customer service to cancel. Regardless of how you cancel, be sure to receive a confirmation email and check your credit card statement to avoid any future charges.
- Above all, be sure to read the fine print and ask any questions before you sign up. Check the settings on the ‘Manage Subscription’ or ‘Account’ page before you commit to the service to see how transparent the cancellation process is.