National Consumers League

From the Experts Blog

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Enough is enough! It’s time for the FTC to protect consumers from deceptive automatic renewal clauses

Brian Young

If you're like most Americans ,you have probably had a bad experience with an automatic renewal or--as they are sometimes referred to--a negative option clause. Regardless of the name they go by, these clauses cause contracts and subscriptions (ranging from equipment leases to gym memberships) to renew if a consumer fails to cancel the contract. Unfortunately for consumers, these clauses are increasingly being slipped into the fine print of contracts or misleadingly disclosed to customers during the checkout process.  

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