Understanding HR7048: Unsubscribe Act of 2025

The Unsubscribe Act of 2025 introduces new rules to help consumers better manage their subscriptions. One of the main changes is that companies must clearly explain all the terms of a subscription before charging customers. This means that before you sign up for a service, you'll know exactly what you're agreeing to, and companies must keep a record of your consent for at least three years. Another important change is that subscriptions can't automatically renew for longer than the original term unless you give explicit permission. This prevents companies from continuing to charge you without your clear consent. Additionally, businesses must offer easy ways to cancel subscriptions, like a simple online button, so you don't have to jump through hoops to stop a service you no longer want. For services that start as free trials or discounted offers, companies must inform you upfront about when and how the service will become paid. They also need to send reminders before charging you. This ensures that you won't be caught off guard by unexpected charges. The bill also empowers the Federal Trade Commission (FTC) to treat violations as deceptive practices, allowing states to take legal action on behalf of their residents. This means stronger enforcement against companies that don't follow the rules, helping to protect consumers nationwide.

This bill is important because it addresses a common problem many people face with subscriptions: unexpected charges and difficult cancellations. By making it easier to understand and manage subscriptions, the bill helps consumers avoid wasting money on services they no longer use or want. Everyday Americans, especially those who are busy or forgetful, will benefit from these changes. Vulnerable groups, like seniors who are often targeted by scams, will also be better protected. With clearer terms and easier cancellations, people can save money and avoid the frustration of dealing with complicated subscription processes.

- Prevents Surprise Charges: The bill aims to stop "subscription traps" where people forget to cancel and end up with unwanted charges. - Enhances Transparency: By requiring clear disclosures and consent records, the bill reduces deceptive practices and disputes. - Simplifies Cancellations: Easy online cancellation options mean no more navigating complicated phone systems to cancel a service. - Protects Vulnerable Groups: Seniors and tech-averse individuals will be better protected from scams and unexpected charges. - Boosts Enforcement: States can quickly address local issues, providing faster resolutions for consumers.

- Increased Business Compliance Costs: Companies may face higher costs to update systems and processes, potentially leading to higher prices for consumers. - Administrative Burden on FTC/States: New enforcement responsibilities could strain resources without additional funding. - Overregulation of Legitimate Renewals: Limits on renewal terms might inconvenience customers who prefer automatic renewals. - Preemption Conflicts: Differences between state and federal laws could create compliance challenges for companies. - Innovation Stifling: More regulations might discourage companies from offering free trials, slowing industry growth.