Negative option offers charge you unless you take action to cancel. Federal and state laws require disclosures and consent, and they limit deceptive practices.
What companies must do
- Clearly disclose the terms before you sign up, including price, renewal and how to cancel.
- Get your express consent to the recurring charge.
- Provide a simple way to cancel, often the same way you signed up in many states.
- Send reminders in some cases, such as before annual renewals.
Common tactics
- Free trials that convert to paid without clear notice.
- Hidden or confusing cancellation steps.
- Charges after you cancel.
- Price increases on renewal without notice.
What you can do
- Keep screenshots of the sign-up page and terms.
- Calendar trial end dates.
- Cancel in writing and keep proof.
- Dispute unauthorized charges with your card issuer.
- Report deceptive practices to the FTC and your attorney general.
Use protections
Virtual card numbers and limits can prevent surprise renewals. Review statements monthly. See our guides to gym and subscription cancellations and chargebacks.
Frequently asked questions
Is it legal to charge after a free trial?
Yes if properly disclosed and consented to, but deceptive practices are illegal.
Can I get a refund after renewal?
Sometimes, especially if the company violated notice rules.