RenewProof · Small business
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.
📐 The honest answer: Auto-renewal laws apply to recurring billers of any size — there's no small-seller carve-out. If you run subscriptions, the disclosure, consent and easy-cancel rules apply to you.
If it applies to you, here's what you need — these are the points small businesses most often miss:
⚠️ Exposure: FTC fines up to $53,088/violation + state penalties · Status: In force. Regulators and plaintiffs do go after small businesses — being small is not a defence.
Compare the penalty for every rule →
Auto-renewal laws apply to recurring billers of any size — there's no small-seller carve-out. If you run subscriptions, the disclosure, consent and easy-cancel rules apply to you.
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.
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.
Several state laws require advance notice before annual renewals or price changes; sending one is best practice everywhere.
RuleGoose checks this against US auto-renewal law (FTC ROSCA + state ARLs). Read it yourself: ROSCA on Cornell LII (15 U.S.C. 8401) →
or read the full US auto-renewal & cancellation laws guide, or get one RuleGoose Score across every rule.
Informational only, not legal advice, and not affiliated with the FTC. Thresholds can change and be fact-specific — confirm against the cited source. Last reviewed 2026-06-30.