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 before charging consumers, and limits the duration of automatic renewals. The act also necessitates simple cancellation mechanisms and specific notifications for 'free-to-pay' conversions.
Expected Effects
This act will likely lead to greater transparency and control for consumers in subscription-based services. Businesses using negative option contracts will face stricter regulations and potential penalties for non-compliance. The Federal Trade Commission (FTC) and state attorneys general will have increased enforcement powers.
Potential Benefits
- Increased transparency in subscription services.
- Greater consumer control over automatic renewals.
- Simplified cancellation processes.
- Protection against unwanted charges and hidden fees.
- Empowerment of consumers through informed consent.
Potential Disadvantages
- Potential for increased costs for businesses offering subscription services, which may be passed on to consumers.
- Possible reduction in the availability of certain subscription services if businesses find compliance too burdensome.
- Increased regulatory burden on businesses.
- Potential for frivolous lawsuits against businesses.
- Possible delays in subscription processing due to stricter consent requirements.
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, granting Congress the power to regulate interstate commerce. By setting rules for commercial transactions involving negative option contracts, the act falls under this purview. 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).