Some contracts are for ongoing services you receive. These are called subscription contracts and the rules below apply if the subscription results in cumulative payments of more than $50, even if those payments are made in smaller recurring amounts.
Common examples of subscription contracts include:
Streaming services
Meal kit or food delivery subscriptions
News or digital subscriptions (e.g., newspapers, cloud storage)
If your subscription renews automatically, there are rules to protect you. A business can only automatically renew your contract if they meet certain notice and cancellation requirements.
Your cancellation rights depend on the renewal term.
60 days or less:
You can cancel anytime, before or after renewal, with no fees
You won’t receive a refund for any unused time
More than 60 days:
You can cancel anytime, before or after renewal
The business must give you between 30 and 60 days’ notice before the renewal date, and must include the renewal date, your cancellation rights, instructions for how to cancel, and tell you that the subscription will renew if you do not respond
If you’re eligible for a refund, the amount will be calculated using a formula that considers the services you’ve used and the services remaining
Refunds must be issued within 15 days, and no further charges can be made after you cancel your subscription
To cancel your contract, send a cancellation request directly to the business in a way that gives you proof of delivery, such as email, fax or registered mail. Keep copies for your records and be sure to follow up with the business. It is always a good idea to confirm a contract cancellation.
Some contracts allow a business to change the terms (for example, price or features) without your participation or agreement. These changes are only allowed if:
At the time the contract is entered into, the contract clearly says what can be changed
The business gives you at least 30 days’ and no more than 60 days’ notice about any changes and your right to cancel
A business generally can’t change cancellation, return, exchange or refund terms in a way that puts more responsibility on you (or less responsibility on the business) without your agreement.
If a change negatively affects you (for example, you have to pay more or get less), you can cancel at any time without penalty.
Before you buy goods or services, there are certain things that must be disclosed to you. These rules are designed to make sure you get clear information before you agree to something.
Pre-contract disclosures and contract requirements
For subscription contracts, businesses must provide certain information upfront and in the contract itself, such as:
The total price, including any ongoing or recurring charges
The terms of payment, including how often you’ll be billed (for example, monthly or annually)
Details of any promotional offers, including how long they last and what happens when they end
Cancellation, return and refund policies, including any fees or conditions
The supplier’s delivery arrangements, if applicable, including the mode of transportation and delivery location
A detailed description of the goods or services to be supplied under the contract, including any relevant technical or system specifications
Renewal terms, including whether the subscription renews automatically and how
This is not an exhaustive list.See the full list of contract requirements on our Contracts page.
