How Connecticut’s New Law Protects Consumers From Unexpected Subscription Charges
New updates to Connecticut’s automatic renewal law took effect July 1, requiring businesses to send annual renewal reminders and make canceling a subscription as easy as signing up for one
Attorney General William Tong said companies that fail to comply could face investigation for unfair trade practices
The law passed with bipartisan support, with Senate and House Democrats and the Republican ranking member of the General Law Committee all backing the changes
Updates to Connecticut’s automatic renewal law took effect July 1, giving consumers new rights over subscriptions and memberships that renew automatically, state officials announced Thursday.
The new policies strengthen the state’s existing “click to cancel” statute, requiring covered businesses to send consumers an annual reminder before an automatic renewal, including the cost, frequency and cancellation instructions.
Businesses must also provide an easy way to cancel. They can no longer require consumers to cancel in person or by mail, and must offer either an online cancellation option or a phone number, depending on how the business operates. Companies must process cancellation requests promptly, and if a consumer leaves a voicemail with sufficient information to cancel, the business has one business day to do so.
“Businesses don’t get to profit by trapping consumers in subscriptions they no longer want,” Attorney General William Tong said. “Connecticut is putting consumers back in control with strong new ‘click to cancel’ rights. Businesses that fail to comply may be engaging in unfair trade practices, and we will not hesitate to enforce the law.”
Senate Majority Leader Bob Duff, D-Norwalk, said the law responded to residents who were caught off guard by unexpected charges after a subscription renewed without warning.
“With this law now taking effect, those days are over,” Duff said. “Companies must be upfront with consumers before charging them, and if someone decides a service no longer fits their needs, canceling should be simple and straightforward.”
Sen. James Maroney, D-Milford, Senate chair of the General Law Committee, said the law ensures companies can no longer quietly renew subscriptions without giving consumers fair notice, and makes cancellation just as easy as signing up.
The law exempts certain regulated industries, including public utilities, banks, credit unions, and businesses already overseen by the Federal Communications Commission, the Federal Energy Regulatory Commission or the Connecticut Insurance Department.
Consumers who believe a business has violated the new requirements can file a complaint with the Office of the Attorney General or the Department of Consumer Protection.
By Michelle Rappaport