Have you ever tried to cancel a subscription, only to find yourself trapped in an endless maze of customer service calls, hidden cancellation buttons, or confusing terms and conditions? You’re not alone. Millions of Americans struggle with subscription traps every year, losing billions of dollars to services they no longer want or use. But 2025 brings new hope for consumers with strengthened federal regulations designed to protect your rights and make canceling subscriptions as easy as signing up.
What Are Subscription Traps?
Subscription traps are deceptive business practices that make it deliberately difficult for consumers to cancel recurring payments. These tactics have become increasingly sophisticated as more companies shift to subscription-based business models. From streaming services to gym memberships, meal kits to software subscriptions, the subscription economy has exploded — and so have the complaints.
Common subscription trap tactics include hiding cancellation options deep within account settings, requiring customers to call during limited business hours, refusing to process online cancellations, or automatically renewing subscriptions without clear notification. Some companies even make customers navigate through multiple screens designed to guilt or confuse them into staying subscribed.
The Real Cost of Subscription Traps
According to Federal Trade Commission data, consumers waste an average of $219 per year on forgotten or unwanted subscriptions. That’s money that could go toward groceries, savings, or paying down debt. Beyond the financial impact, subscription traps cause significant stress and frustration for consumers who feel powerless against corporate tactics.
Understanding the Click-to-Cancel Rule
The FTC’s Click-to-Cancel Rule, finalized in 2024 and taking full effect in 2025, represents a major victory for consumer rights. This regulation requires businesses to make canceling a subscription as easy as signing up. If you can subscribe with a single click online, you must be able to cancel with the same simplicity.
Key Provisions of the Rule
The Click-to-Cancel Rule includes several important consumer protections. First, businesses must provide a clear and conspicuous cancellation mechanism that’s easy to find and use. No more hunting through multiple menu screens or being forced to chat with a retention specialist.
Second, companies must obtain your explicit informed consent before charging you for a subscription. This means clearly disclosing all material terms upfront, including the cost, frequency of charges, and how to cancel. Hidden fees or surprise charges after a “free trial” are no longer acceptable.
Third, the rule requires annual reminders for negative option subscriptions. If you’re enrolled in a subscription that automatically renews, companies must notify you before each renewal and provide a simple way to cancel at that time.
Your Legal Rights Under Consumer Protection Laws
Beyond the Click-to-Cancel Rule, you have multiple layers of legal protection against subscription fraud. Understanding these rights empowers you to take action when companies violate them.
Federal Consumer Protection
The Restore Online Shoppers’ Confidence Act (ROSCA) prohibits companies from charging your credit card without clearly disclosing all material terms and obtaining your express informed consent. This applies to initial charges as well as recurring payments.
Additionally, the Telephone Consumer Protection Act gives you the right to revoke consent to receive marketing calls through any reasonable means. Simply texting “STOP” or “UNSUBSCRIBE” is legally sufficient, and companies must honor your request immediately.
State Consumer Protection Laws
Many states have enacted their own consumer protection statutes that provide even stronger protections. California’s Automatic Renewal Law, for example, requires businesses to provide an acknowledgment that includes the cancellation policy, along with information on how to cancel.
New York’s automatic renewal laws require clear and conspicuous disclosure of subscription terms before purchase, as well as easy cancellation methods. These state laws often include private rights of action, meaning you can sue companies directly for violations without waiting for government enforcement.
How to Cancel Unwanted Subscriptions
If you’re stuck in a subscription trap, here are practical steps to break free and protect your rights.
Document Everything
Before attempting to cancel, document your subscription details. Take screenshots of confirmation emails, subscription terms, and your account dashboard. Note when you signed up, what you were promised, and what you’re actually being charged. This documentation becomes crucial evidence if you need to dispute charges or file a complaint.
Follow the Proper Cancellation Process
Start by looking for the cancellation option in your account settings. Under the Click-to-Cancel Rule, it should be prominently displayed and easy to use. If you can’t find it, check the company’s website for cancellation instructions or contact customer service — but document these interactions.
When canceling online, save confirmation emails or take screenshots showing your cancellation was processed. If you must call, note the date, time, representative’s name, and any confirmation number provided.
Contact Your Bank or Credit Card Company
If a company refuses to honor your cancellation or continues charging you after you’ve canceled, contact your bank or credit card issuer immediately. You have the right to dispute unauthorized charges, and financial institutions take these complaints seriously.
Request a chargeback for any charges made after your cancellation date. Many credit card companies offer additional protection for subscription billing disputes and can block future charges from that merchant.
When to Seek Legal Help
While many subscription disputes can be resolved directly with the company or through your bank, some situations warrant legal assistance. Consider consulting with a consumer protection attorney if the company refuses to honor your cancellation despite your documented efforts, if you’ve suffered significant financial losses due to unauthorized charges, or if the company engages in harassment or threatens your credit after cancellation.
You should also seek legal help if multiple consumers have experienced similar problems with the same company, as this may indicate a pattern of deceptive practices suitable for a class action lawsuit. An experienced consumer protection attorney can evaluate whether you have grounds for legal action and help you recover not just your money, but also statutory damages and attorney’s fees.
Taking Action Against Subscription Fraud
Beyond canceling your own unwanted subscriptions, you can help hold companies accountable by reporting violations to the appropriate authorities.
File a Complaint with the FTC
The FTC accepts consumer complaints about deceptive subscription practices through their online complaint assistant. Your report helps the FTC identify patterns of misconduct and take enforcement action against violators.
Report to Your State Attorney General
State attorneys general actively enforce consumer protection laws and often have dedicated consumer protection divisions. Filing a complaint with your state AG can trigger investigations and lead to legal action against companies engaging in subscription traps.
Leave Public Reviews
Share your experience on consumer review sites and social media. Public accountability often motivates companies to improve their practices and helps warn other consumers about problematic businesses.
Protecting Yourself from Future Subscription Traps
Prevention is always better than cure. Here are strategies to avoid subscription traps in the first place.
Always read the fine print before signing up for any subscription. Look for information about renewal terms, cancellation policies, and any automatic price increases after an introductory period. Set calendar reminders a few days before free trials end so you can cancel before being charged. Use a dedicated credit card for subscriptions so you can easily track all recurring charges in one place.
Consider using virtual credit card numbers for subscription services. Many banks and services like Privacy.com allow you to create disposable card numbers with spending limits, giving you more control over recurring charges.
Regularly review your bank and credit card statements for unexpected charges. Catching unauthorized subscriptions early makes them easier to dispute and recover your money.
The Bottom Line
The Click-to-Cancel Rule and strengthened consumer protection laws in 2025 represent significant progress in the fight against subscription traps. You have the legal right to easily cancel unwanted subscriptions, and companies that violate these rules face serious consequences.
Don’t let subscription traps drain your finances or cause unnecessary stress. Know your rights, document your interactions, and don’t hesitate to seek legal help when companies refuse to honor your cancellation requests. Your time and money are valuable, and the law is finally catching up to protect them.
If you’re struggling with a subscription trap and need legal guidance, our experienced consumer protection team is here to help. We understand the tactics companies use and know how to hold them accountable. Contact us today for a consultation about your rights and options.