2025 Subscription Law Changes: Are You Compliant?
If your business offers recurring digital products, such as courses, coaching, memberships, or software, changes to subscription laws could impact you right now. These are not optional platform tweaks or informal guidelines. They are legally binding requirements that went into effect across multiple countries in mid 2025.
New and updated subscription laws in the United Kingdom, European Union, and Australia now require creators and online businesses to provide simple, self-service cancellation options. While a new rule in the United States has been paused for now, state-level laws are still active.
In this post, I’ll break down what these subscription laws are, where they apply, and what actions you need to take to stay compliant.
Legal Disclaimer: This post is for educational purposes only and does not constitute legal advice. Read full disclaimers.
What Changed Under 2025 Subscription Laws
Between April and July 2025, several countries implemented or began enforcing new subscription laws. The common theme is that customers must be able to cancel a subscription as easily as they signed up for it.
🇺🇸 United States – Federal Subscription Law Blocked, State Laws Still Apply
In 2024, the Federal Trade Commission finalized a rule under the Restoring Online Shoppers’ Confidence Act, known as the “Click to Cancel” rule. It was designed to make online subscription cancellation straightforward and fast. However, in July 2025, a federal appeals court blocked the rule from taking effect.
Although there is no federal enforcement right now, some states already have their own subscription laws. For example, California requires that businesses provide online cancellation and avoid confusing or obstructive cancellation flows.
If you sell to customers in the United States, especially those in California, your cancellation experience should still align with current state subscription laws to reduce risk and improve trust.
🇬🇧 United Kingdom – Subscription Laws Now Enforced Under DMCC Act
The United Kingdom’s new subscription laws are part of the Digital Markets, Competition and Consumers Act. This law was passed in 2024 and began enforcement in April 2025.
The Act gives the Competition and Markets Authority new enforcement powers and requires businesses to provide:
- A cancellation process that is as easy as signing up
- Pre-renewal reminders before charges occur
- Cooling-off periods both after sign-up and after auto-renewals
If you sell digital subscriptions to UK customers, these subscription laws apply to your business, even if your company is based outside the UK.
🇪🇺 European Union – Stronger Subscription Cancellation Laws Through Updated Consumer Rights Directive
The European Union updated its Consumer Rights Directive as part of the New Consumer Agenda. By April 2025, all member states were required to enforce new subscription laws related to digital contracts and online purchases.
These rules require businesses to:
- Offer a clearly visible Cancel Subscription button in any user-facing interface
- Ensure that cancellation is as easy as the original sign-up process
- Send pre-renewal notifications
- Avoid manipulative or confusing cancellation designs
These subscription laws are enforced by national consumer protection agencies within each EU country.
If you serve EU customers, even from outside the region, you must comply with these laws.
🇦🇺 Australia – Updated Subscription Laws Under Fair Go for Consumers Act
Australia introduced updated subscription laws through the Fair Go for Consumers Act, which came into effect in May 2025. These amendments to the Australian Consumer Law were created to stop businesses from hiding cancellation options or renewing subscriptions without notice.
The new rules require:
- Clear and prominent subscription terms at the point of purchase
- Simple, self-service online cancellation
- Reminder emails before auto-renewals
- No unnecessary delays or barriers to leaving a subscription
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The Australian Competition and Consumer Commission is actively monitoring businesses for compliance.
If you serve customers in Australia, these subscription laws are in force now and must be part of your workflow.
Who Do Subscription Laws Apply To
Subscription laws apply based on where your customers are located, not where your business is based. So even if you’re running a digital business from one country, you’re still expected to follow the subscription laws in your customer’s country.
Here are a few common examples:
- If you’re a creator in Canada selling to customers in Germany, you must follow EU subscription laws
- If you’re a coach in Germany with clients in the UK, you’re subject to UK requirements
- If you’re a U.S.-based entrepreneur with Australian customers, you need to comply with Australian law
If you offer any kind of subscription or recurring billing, chances are these updated cancellation rules already apply to your business.
Follow These Steps to Help Your Business Comply With Updated Subscription Laws
Here is a simple checklist to help you get compliant with the latest subscription laws.
Why Subscription Cancellation Law Compliance Matters
Ignoring these rules could expose your business to:
- Legal complaints and investigations
- Payment processor flags and account freezes
- Chargebacks and refund requests
- Reputational damage and loss of customer trust
Complying with subscription laws shows you respect your customers. It also helps prevent billing disputes and makes your brand more trustworthy across global markets.
Need Help Updating Your Terms to Comply With Subscription Laws?
If you run a membership site, you already know that recurring billing comes with extra legal responsibilities. These new subscription laws just raised the bar for transparency and cancellation access, and your Terms and Conditions need to reflect that.
To make this easier, I created a Terms and Conditions plugin for memberships. It plugs right into your existing terms and adds professionally drafted, compliance-friendly language that covers things like:
- Subscription renewals and billing cycles
- Cancellation rights based on customer location
- Cooling-off periods, refund terms, and more
If you offer paid access on a recurring basis, this tool will help you stay ahead of the rules without starting from scratch.
If you don’t have a Terms and Conditions page at all yet, I also offer a basic Terms and Conditions template that you can quickly customize for your business. It’s a solid starting point and easy to build on as your business grows.
Legal compliance doesn’t have to be overwhelming. These tools are designed to make it simple, fast, and creator-friendly.
Read more about website terms and conditions
How to Write Website Terms and Conditions (Step-by-Step Guide)
