Unsubscribe Act of 2025
Summary
The Unsubscribe Act of 2025 aims to increase consumer protection regarding negative option contracts across all media. It mandates clear disclosure of contract terms, requires express informed consent from consumers before charging them, and limits the duration of negative option contracts. The bill also establishes simple cancellation mechanisms and specific notification requirements for free-to-pay conversion contracts.
Expected Effects
This act will likely lead to greater transparency and control for consumers in subscription-based services. It empowers consumers to make informed decisions and easily cancel unwanted subscriptions. The Federal Trade Commission (FTC) and state attorneys general would enforce the act, potentially leading to increased litigation and compliance costs for businesses.
Potential Benefits
- Enhanced consumer control over subscriptions and recurring charges.
- Increased transparency in contract terms and billing practices.
- Simplified cancellation processes for negative option contracts.
- Reduced risk of unwanted or unexpected charges.
- Stronger enforcement mechanisms through the FTC and state attorneys general.
Most Benefited Areas:
Potential Disadvantages
- Increased compliance costs for businesses offering subscription services.
- Potential for frivolous lawsuits against businesses.
- Possible reduction in the availability of certain subscription services due to increased regulation.
- Could disproportionately affect smaller businesses with limited resources for compliance.
- May lead to slightly higher prices for subscription services as businesses pass on compliance costs.
Most Disadvantaged Areas:
Constitutional Alignment
The Unsubscribe Act of 2025 primarily aligns with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. By regulating negative option contracts, the Act aims to prevent unfair or deceptive practices that affect consumers across state lines. The Act does not appear to infringe upon any individual liberties or rights protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).