CLARKE, VAN HOLLEN INTRODUCE BILL TO SAFEGUARD CONSUMERS FROM ONLINE SUBSCRIPTION TRAPS, REQUIRE COMPANIES TO SHIFT FROM OPT-OUT REQUIREMENTS TO OPT-IN

FOR IMMEDIATE RELEASE:

July 14, 2025

MEDIA CONTACT:

e: jessica.myers@mail.house.gov

c: 202.913.0126

WASHINGTON, D.C. – Today, Congresswoman Yvette D. Clarke (D-N.Y.) and U.S. Senator Chris Van Hollen (D-Md.) and reintroduced their Consumer Online Payment Transparency and Integrity (Consumer OPT-IN) Act, bicameral legislation to protect consumers from online free trial scams and hard-to-cancel recurring-payment programs. The lawmakers’ bill puts the onus on companies rather than consumers when it comes to subscriptions and memberships, including requiring a shift from “opt-out” conditions to “opt-in.” This reintroduction comes after the U.S. Court of Appeals for the Eight Circuit last week vacated the Federal Trade Commission’s (FTC) 2023 “click to cancel” rule, which would have complemented this legislation by making it easier to get out of unwanted subscriptions. As a result of this ruling, businesses are free to continue using deceitful practices that trap consumers into making recurring payments that they never intended to make – underscoring the need to codify into law the “opt-in” requirements in this legislation.

“Too often, consumers find themselves unknowingly caught in a cycle of recurring charges for subscriptions that extend far beyond what they initially agreed to. That was what the FTC aimed to mitigate with their ‘Click to Cancel’ rule, which required subscription services to make cancellation just as streamlined as sign up, reducing deceitful business practices that play with people’s hard earned money. Despite the Eighth Circuit Court of Appeals striking this rule down earlier this week due only due to a procedural issue, protecting consumers is too important a task to delay. That is why I am proud to join Senator Van Hollen in introducing the Consumer Online Payment Transparency and Integrity (Consumer OPT-IN) Act, which will build upon the FTC’s efforts to shield consumers from being locked into recurring subscription agreements they didn’t consent to. I look forward to carrying this legislation through Congress alongside my colleagues,” said Congresswoman Clarke.

“While companies have made it easier than ever to sign up for subscription-based services, too many Americans know the frustration of jumping through endless hoops to get out of them. Corporate special interests are pushing to preserve the status quo so they can pad their profits by keeping consumers locked into unwanted subscriptions, but we will keep fighting back. Our legislation puts consumers in control – offering them an easy way out of subscription traps and holding companies accountable for these deceptive practices,” said Senator Van Hollen.

“It takes five seconds to subscribe to a service online, which can end up costing Americans hundreds of dollars per year. It should be just as easy for hardworking Americans to cancel,” said Rep. Correa. “Click to cancel means hardworking Americans can choose how they spend their money, without jumping through impossible hoops to get out of services they don’t want,” said Congressman Lou Correa (D-Calif.), who is co-leading the legislation with Congresswoman Clarke in the House.

This legislation is endorsed by Public Citizen, National Consumer Law Center, Consumer Action, Americans for Financial Reform, and American Economic Liberties Project.

In the Senate, the Consumer OPT-IN Act is cosponsored by Senators Richard Blumenthal (D-Conn.), John Fetterman (D-Pa.), Kirsten Gillibrand (D-N.Y.), Mazie Hirono (D-Hawaii), Ben Ray Luján (D-N.M.), Jeff Merkley (D-Ore.), Jack Reed (D-R.I.), Peter Welch (D-Vt.), and Ron Wyden (D-Ore.). In the House, it is cosponsored by Representatives Robin Kelly (D-Ill.) and Doris Matsui (D-Calif.).

Companies increasingly use free trial offers and unclear terms and conditions to trap consumers into subscriptions. Additionally, companies often use software and interfaces that subtly trick users, called dark patterns, making it harder for consumers to end these subscriptions and stop unwanted charges. While the FTC has dedicated significant resources to combatting the worst of these business practices, resulting in at least $110 million worth of refunds returned to consumers over the past five years, more action is needed. To more effectively deter companies from employing these practices and better protect and inform consumers, the Consumer OPT-IN Act would limit the use of deceptive tactics and impose stricter notification requirements on companies.

The Consumer OPT-IN Act will protect consumers from deceptive free trials and marketing tactics by:

Requiring companies to get express informed consent from consumers before converting free trials into automatically renewing contracts and charging consumers;
Requiring companies to notify consumers of the first automatic renewal and obtain express informed consent from consumers before automatically renewing long term contracts;
Requiring that companies offering contracts that automatically renew on a short-term basis get express informed consent from consumers annually;
Requiring companies that have knowledge that a consumer isn’t using their products or service for 6 months to get the consumer’s express informed consent to continue billing, and allowing consumers to request a refund for the remaining portion of the contract;
Providing consumers with refunds when violations occur;
Giving the FTC rulemaking authority over negative option contracts, automatic renewals, and dark patterns.

The legislation was initially introduced by Van Hollen and Clarke in December 2021. Bill text is available here.

“We support Sen. Van Hollen’s and Rep. Clarke’s commonsense bill,” said Lisa Gilbert, Co-President of Public Citizen. “When the pitch says, ‘The first month is free,’ it can’t whisper ‘But we’re not telling you how to cancel.’ Firms must be clear about exactly when and how a consumer can stop unwanted payments.”

“Sen. Van Hollen’s and Rep. Clarke’s bill would protect people from deceptive ‘free offers’ that turn into unwanted membership clubs and from costly subscriptions that are difficult to cancel. The bill would help people like my 95-year old father, who has been hit by hundreds of dollars a year coming out of his account for clubs he did not even know he signed up for,” said National Consumer Law Center Associate Director, D.C., Lauren Sauners.

“Senator Van Hollen’s and Rep. Clarke’s OPT-IN Act puts the power back in consumers’ hands to decide if they want to do business with a company once a free trial expires,” says Ruth Susswein, Consumer Action’s Director of Consumer Protection. “This legislation would end unwanted, misleading contract renewals that consumers are duped into.”

“Sen Van Hollen and Rep Clarke’s Opt-In Act will save consumers time and money in unfurling subscriptions they no longer want,” said Morgan Harper, American Economic Liberties Project Director of Policy & Advocacy. “In light of a court striking down the FTC’s “click to cancel” rule on procedural grounds, this legislation that is backed by 85% of voters would restore much needed consumer protections. The Trump FTC should also move quickly to reissue its Click-to-Cancel rule.”

“Consumers should not have to jump through hoops to cancel subscriptions they no longer want. Our commonsense measure empowers consumers with the protections and transparency they deserve—ensuring corporations cannot trap people into costly recurring payments after a free trial period ends,” said Senator Blumenthal.

“It should be just as easy to cancel a subscription as it is to start one, plain and simple. For too long, corporations have tricked consumers into paying for their services for longer than they wanted, whether it’s through deceptive free trials or hard-to-end recurring payments. I’ve been there just like too many other Pennsylvanians, sitting on hold trying to cancel a subscription,” said Senator Fetterman. “I’m proud to join my colleagues to introduce the Consumer OPT-IN Act to hold these companies accountable and put consumers back in charge of their hard-earned money.”

“For too long, corporations have forced consumers to work through complicated hurdles in order to cancel their unwanted subscriptions and memberships,” said Senator Hirono. “The Consumer OPT-IN Act would address this problem by prioritizing consumer choice – offering people simple options to unsubscribe and protecting consumers from deceptive practices. I’m glad to join my colleagues in introducing this legislation to hold these corporations accountable and help people keep their hard-earned money.”

“We’ve all seen these types of ‘deals’ – companies hook you with a free trial, then make it hard to cancel or quietly continue to charge you,” said Senator Luján. “Consumers deserve transparency and fairness. I’m proud to join Senator Van Hollen to push for greater transparency and to protect Americans from deceptive and unwarranted charges.”

“Consumers shouldn’t have to jump over roadblocks from greedy corporations to cancel a subscription,” said Senator Merkley. “Our bill will make it as simple to cancel a subscription as it is to sign up – no tricks, no gimmicks, no waiting on hold. Let’s pass this common-sense solution that makes sure Americans know what they’re signing up for.”

“This legislation will make it easier for consumers to cancel subscriptions they don’t want. The process of enrolling and cancelling should be equally simple: If one click can sign you up, then you should be able to cancel with one click too,” said Senator Reed. “Simplifying the process for ending ‘free trials’ or unwanted subscriptions will save consumers real money. This bill will get rid of needless cancellation hurdles, hold corporations accountable, and save consumers time, money, and peace of mind.”

“If there’s one thing everyone can’t stand, it’s getting ripped off. And that’s exactly what subscription-based services have been doing to American consumers, by making it difficult to cancel subscriptions. Consumers in Vermont and across the country deserve more transparency and accountability,” said Senator Welch. “This common-sense legislation will combat deceptive and dishonest business practices and protect consumers across the country from rip-offs.”

“Unexpected charges and confusing websites can make unsubscribing from a service a headache,” said Senator Wyden. “Relief was in sight, but Donald Trump’s administration killed new protections for consumers and handed a huge gift to his corporate pals. I’m proud to work with Sen. Van Hollen and my colleagues on the OPT-IN Act to ensure it’s just as easy for Americans to unsubscribe from services as it is to sign up.”

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