Auto-renewal
Auto-renewal
Subscriptions
When a subscription renews automatically at the end of each billing cycle or term unless the customer cancels.
What is Auto-renewal?
Many US states and other countries have auto-renewal laws that require clear disclosure, consent and an easy way to cancel. Clear terms and a simple cancellation path protect both customers and brands.
What good practice looks like: state the price, the renewal frequency and how to cancel before the customer buys, get clear consent, send a confirmation, and remind customers before longer terms renew. Rules differ by place and change over time, so check the requirements that apply to your customers.
Example
For example, a customer buys an annual plan for $180 that renews each year. Thirty days before renewal, they get an email showing the date, the amount and a link to manage or cancel. If they do nothing, the plan renews and they are charged $180.
Why Auto-renewal Matters
Auto-renewal keeps subscriptions going without effort, and handling it transparently keeps customers from feeling trapped.
Explore More Terms
Browse our complete glossary of e-commerce and subscription terms.
