RenewProof · SaaS

US auto-renewal & cancellation laws for SaaS

Federal ROSCA + 30+ state auto-renewal laws carry real penalties — clear disclosure, consent, and a cancel path as easy as signup. (The FTC's federal click-to-cancel rule was vacated in 2025; state laws still bite.) Check your flow.

In force US rules SaaS

What US auto-renewal & cancellation laws means for SaaS businesses

SaaS businesses sit at the centre of the newer rules: you process personal data at scale, bill on recurring plans, send product and marketing email, and increasingly ship AI features — each its own compliance surface.

🏷️ For SaaS businesses: Recurring billing is core to SaaS, so the auto-renewal disclosure, easy-cancel and renewal-reminder rules hit you directly.

Does this apply to you?

This rule applies to SaaS businesses who charge customers on a recurring subscription. Run subscriptions? Check your signup & cancel flow against federal ROSCA + 30+ state auto-renewal laws. Not sure? The free checker tells you in about a minute — no signup.

The checklist

You need to be able to answer "yes" to each of these — the points SaaS businesses most often get caught on:

What's at stake

⚠️ Exposure: FTC fines up to $53,088/violation + state penalties · Status: In force.

Compare the penalty for every rule →

Common questions

How does uS auto-renewal & cancellation laws affect SaaS businesses?

Recurring billing is core to SaaS, so the auto-renewal disclosure, easy-cancel and renewal-reminder rules hit you directly.

Is the FTC click-to-cancel rule in effect?

The federal 'click-to-cancel' Negative Option Rule was vacated in July 2025, but ROSCA and 30+ state auto-renewal laws still require clear disclosure, consent, and easy cancellation — and the FTC reopened rulemaking in 2026.

What do auto-renewal laws require?

Clear, upfront disclosure of the renewal terms before billing, affirmative consent to the recurring charge, and a cancellation path at least as easy as signup.

Do I need to send a renewal reminder?

Several state laws require advance notice before annual renewals or price changes; sending one is best practice everywhere.

The source

RuleGoose checks this against US auto-renewal law (FTC ROSCA + state ARLs). Read it yourself: ROSCA on Cornell LII (15 U.S.C. 8401) →

Check your US auto-renewal & cancellation laws compliance — free.
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The full picture for SaaS

US auto-renewal & cancellation laws is one of several rules a SaaS business has to meet. See the full SaaS compliance checklist →, or read the platform-neutral US auto-renewal & cancellation laws guide.

Same rule, other industries

Informational only, not legal advice, and not affiliated with the FTC. Last reviewed 2026-06-30.