Unsubscribe Act of 2021

The Unsubscribe Act of 2021 aims to protect consumers from "negative option" agreements, which occur when a company interprets a customer's silence or failure to take action as consent to be charged for a subscription or service. If passed, the bill would require companies to clearly disclose all terms and obtain explicit consent from customers before charging them or automatically renewing a contract.

For the average citizen, this means that any service started online must provide a simple way to cancel using that same method, such as a clear "unsubscribe" button on a website. Additionally, for free trials that transition into paid memberships, businesses would be required to notify the consumer and obtain their permission again before the first full charge is applied. The bill also mandates that companies send a reminder notice to customers several days before a subscription automatically renews.