Key Takeaways
- New York and Colorado have updated automatic-renewal laws going into effect later this year and early next year, introducing new compliance obligations for businesses offering subscription services.
- New York's amended law includes new requirements for advance notice and affirmative consent to price increases, including the option for consumers to cancel and receive a prorated refund if they do not consent to the higher price.
- Colorado's amended law expands coverage to include business-to-business subscriptions, meaning companies selling subscriptions to other businesses will also need to comply with Colorado's enrollment and cancelation requirements.
Recent enforcement actions underscore the growing risks for businesses with automatically renewing subscriptions. In June 2025, New York Attorney General Letitia James announced a$600,000 settlement with fitness company Equinox over allegations that the company made it unreasonably difficult for consumers to cancel memberships and failed to clearly disclose renewal terms. This high-profile action highlights the increasing scrutiny from regulators and the significant financial and reputational consequences for noncompliance.
Enforcement risks are further heightened by the steady stream of new federal and state requirements governing automatically renewing subscriptions. The Federal Trade Commission's updated Negative Option Rule and California's amended automatic-renewal law both go into effect in July (see our prior Updates here and here for more information on each). Those are not, however, the only new subscription requirements that businesses need to be tracking. In this Update, we highlight some key features of recently passed laws in New York and Colorado that will impose new requirements on automatically renewing subscriptions in the coming months.
New York
New York updated its general automatic-renewal law (§527 and §527-A), and the amended law goes into effect on November 5, 2025. This law updates the requirements companies must follow when offering consumers contracts with automatic-renewal terms.The changes introduced by the new law include:
- Notice of material change. After a consumer has enrolled in a subscription, a business must provide the consumer with advance notice of any material changes to the offer terms, including any price changes. Such notice must be clear and conspicuous, be provided between five and 30 days prior to the date of the change, and be sent via the manner the consumer selected.
- Price increase requirements. In addition to providing advance notice of price changes, when a company raises prices for current subscribers, it must either (1)first obtain the consumer's affirmative consent before charging the consumer the higher price or (2)allow the consumer to cancel their subscription for a prorated refund within 14 days of being charged the increased price for the first time.
- Affirmative consent requirements. Companies are required to obtain a consumer's affirmative consent to an automatic renewal offer prior to charging the consumer for the initial term of the contract.
- Initial notice requirements. The law requires companies provide "clear and conspicuous" notice to a consumer of all material terms of any automatic renewal subscription offer prior to obtaining the consumer's consent to the automatic renewal offer or requesting their billing information. Material terms must be displayed in visual proximity, or in the case of an offer conveyed by voice, in temporal proximity, to the request for a consumer's consent.
- Renewal reminders. Companies must also send renewal reminders for subscriptions when the initial term is a year or longer and the renewal term is six months or longer. This renewal reminder must include instructions on how to cancel the renewal, be sent between 15 and 45 days prior to the cancelation deadline for the renewal, and be sent via the manner the consumer selected.
Colorado
Colorado also recently updated its automatic-renewal law (SB25-145), and the amended law goes into effect on February 16, 2026. The changes introduced by the new law include:
- Definition of "consumer." The amended law broadens the definition of "consumer" from individuals that purchase subscription services for personal, family, or household purposes to "a person" that buys subscription services for any purpose. This means that business-to-business subscriptions are likely within the scope of the amended law.
- Cancelation mechanism. Currently, if a consumer consents to an automatic renewal of their contract online, the person or company selling the goods or services must provide either an online or in-person cancelation method. The amended law, however, will require that a consumer who enrolled in a subscription online always be allowed to cancel online via a one-step cancelation link.
- Cancelation and "save" attempts. Colorado's amended law expressly permits companies to display offers during the cancelation process to attempt to "save" subscribers and to display information regarding the effects of cancelation so long as the company simultaneously displays a prominently located and continuously proximate direct link to proceed to cancelation. If the consumer clicks the direct link to proceed, a company must promptly process the cancelation and otherwise not obstruct or delay the consumer's request to cancel.
Looking Ahead
These updated state requirements underscore that automatic-renewal laws remain an area of frequent change and require close attention from businesses. Now is a prudent time for companies to review their enrollment and cancelation flows to ensure they are meeting current requirements. As states continue to update and refine their auto-renewal laws, ongoing monitoring and proactive compliance efforts will be essential to minimize risk and maintain consumer trust.
The authors wish to acknowledge summer associate Ian Seabrooks' contributions to this Update.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
