# What plaintiffs' lawyers look for in subscription checkouts

> The subscription failures that show up again and again in automatic-renewal demand letters, class actions and government cases — hidden renewal terms, cancellation friction, missing proof of consent, trial rollovers, thin confirmation emails — and what to build so your checkout is not one of them. From public cases; not legal advice.

Anyone can audit a public checkout in a few minutes, which is why small subscription brands receive automatic-renewal
demand letters as readily as large ones. Reading the public record — FTC and state attorney-general cases, California
district-attorney judgments, class complaints and law-firm alerts from 2024 to 2026 — the same handful of failures
appear again and again. This page summarizes them so you can check your own flow. It is drawn from Checkbox's desk
research of October 2026, which no lawyer has reviewed; treat it as a briefing, not legal advice.

## How claims arrive {#how}

- **Demand letters** (mostly California). Under the Consumers Legal Remedies Act a consumer must send a 30-day
  notice before suing for damages, so volume filers send letters reciting one customer's sign-up and alleging a list
  of gaps. Many settle; some become lawsuits.
- **Class actions** against larger brands, usually under California's Unfair Competition Law, False Advertising Law
  and Consumers Legal Remedies Act — California's automatic-renewal law has no private right of action of its own, so
  plaintiffs plead it through these and must show economic injury. Illinois (Consumer Fraud Act, with fee-shifting),
  Massachusetts (Chapter 93A) and Virginia are forecast to grow.
- **Government enforcement**: the FTC under ROSCA and Section 5, state attorneys general (New York is the most active)
  and California's district-attorney task force. These produce the largest numbers.

Who can sue in each state is on the [law pages](https://checkbox.site/laws/california#enforcement) and in the [dataset](https://checkbox.site/laws/data).

## The failures, roughly in order of how often and how expensively they are pursued {#failures}

### 1. Renewal terms not clear, or not next to the button {#disclosure}

The single most common allegation: the checkout did not show that the subscription renews until cancelled, the price
and frequency, the cancellation policy and the term **clearly and conspicuously, near the "Pay" button, before the card
was entered**. Typical specifics: terms in small grey type, behind a link, below the fold, or only in the Terms of
Service. A federal court ruled that Amazon violated ROSCA on exactly this point before its $2.5 billion FTC settlement
([FTC, September 2025](https://www.ftc.gov/news-events/news/press-releases/2025/09/ftc-secures-historic-25-billion-settlement-against-amazon)).

**Build:** a boxed disclosure at body size directly above the button, stating all the terms. See
[the checklist](https://checkbox.site/docs/learn/subscription-compliance-checklist#disclosure).

### 2. Cancellation friction {#cancellation}

No online cancel, a hidden link, a forced call or chat, "Are you sure?" loops, save offers in the way, or charges after
the customer asked to cancel. This is less common in private complaints but drives the largest public outcomes (FTC
cases against [Amazon](https://www.ftc.gov/news-events/news/press-releases/2025/09/ftc-secures-historic-25-billion-settlement-against-amazon),
[Chegg](https://www.ftc.gov/news-events/news/press-releases/2025/09/ed-tech-provider-chegg-pay-75-million-settle-ftc-allegations-concerning-unlawful-cancellation)
and others; New York Attorney General cases), and New York City now requires refunding every
charge after the first attempt to cancel.

**Build:** [an online cancellation flow](https://checkbox.site/docs/learn/online-cancellation-flow) that takes two clicks from the account
page and confirms by email.

### 3. No express consent to the renewal, or no proof of it {#consent}

A pre-checked box, consent bundled into "I agree to the Terms", or no record of what a given customer saw and clicked.
Missing proof hurts twice: it is an allegation on its own, and it undermines the defenses businesses rely on. Courts
have refused to enforce arbitration clauses when the business could only offer present-day screenshots instead of the
screen the customer actually used (for example *Dawson v. Target/Shipt*, N.D. Cal.,
[order](https://www.govinfo.gov/content/pkg/USCOURTS-cand-3_24-cv-08167/pdf/USCOURTS-cand-3_24-cv-08167-0.pdf)).

**Build:** an unchecked, required checkbox that states the renewal, and a per-customer record of the disclosure, the
checkbox state and the time — what Checkbox [consent receipts](https://checkbox.site/docs/receipts) store.

### 4. Trials and one-time purchases that become subscriptions; "cancel anytime" that is not true {#misrepresentation}

A one-time purchase that silently enrolls the buyer, a trial that rolls into an annual plan, "no commitment" packs that
auto-renew, or "cancel anytime" when cancelling forfeits the rest of a prepaid term or triggers an early-termination fee.
These were the theories behind settlements with Adobe ($150M, 2026;
[DOJ](https://www.justice.gov/usao-ndca/pr/adobe-agrees-150-million-settlement-and-injunction-resolve-alleged-violations-restore))
and Shutterstock ($35M, 2026;
[FTC](https://www.ftc.gov/news-events/news/press-releases/2026/05/shutterstock-pay-35-million-settle-ftc-allegations-over-illegal-subscription-cancellation-practices)),
and in a 2026 ruling a federal judge sent a "may cancel at any time" claim to a jury (*Sanderson v. Whoop*,
[order](https://www.govinfo.gov/content/pkg/USCOURTS-cand-3_23-cv-05477/pdf/USCOURTS-cand-3_23-cv-05477-10.pdf)).

**Build:** make every claim match how refunds, terms and fees actually work; disclose any early-termination fee next to
the button; never convert a purchase into a subscription without the full disclosure and consent.

### 5. A thin or missing confirmation email {#acknowledgment}

No acknowledgment after sign-up, or one without the renewal terms and how to cancel. Rarely the only allegation, but
pleaded in nearly every California district-attorney complaint, and cheap to fix.

**Build:** your own acknowledgment email (payment receipts do not count) with the terms and a cancel link.

### 6. Missing reminders {#reminders}

Trial-ending, pre-renewal, price-change and annual reminders are a newer and growing category (for example a $1.6M
class settlement over a renewal notice, as
[reported by ClassAction.org](https://www.classaction.org/news/1.6m-mubi-settlement-resolves-class-action-lawsuit-over-subscription-auto-renewal-disclosures)). See [free-trial notices](https://checkbox.site/docs/learn/free-trial-notices) and
[price increases](https://checkbox.site/docs/learn/subscription-price-increases).

### 7. Debit and ACH without an authorization {#reg-e}

Recurring debits from a bank account or debit card need a signed authorization and a copy for the customer
(Regulation E). Less often litigated, but the statute carries statutory damages. See [federal law](https://checkbox.site/laws/federal).

## Defenses that depend on what you built {#defenses}

Three defenses come up repeatedly in the cases: that the customer suffered **no injury** (they knew about the renewal or
kept using the service), that the disclosure **actually was conspicuous** (the Ninth Circuit affirmed dismissal of an
Oregon automatic-renewal class action against YouTube on that ground, as
[reported here](https://www.insideclassactions.com/2024/10/28/ninth-circuit-affirms-dismissal-of-putative-class-action-against-youtube-based-on-oregons-autorenewal-laws/)), and an **enforceable arbitration clause** —
which in turn depends on a real click-through and a record of the exact screen. All three are easier with good records.

## Neighbouring claims {#adjacent}

The same firms that review checkouts for automatic-renewal problems often plead related claims: California's
wiretap-style privacy law over pixels and session replay on checkout pages, California's 2024 drip-pricing law over
fees added late in checkout, and the TCPA over renewal text messages. A subscription review that ignores them is
incomplete.

## Check your own flow {#check}

Checkbox checks your checkout, emails and cancellation flow against the federal rules and every state law in its
catalog, the way a plaintiff's reviewer would, and tells you exactly what to change. It also keeps per-customer
evidence. It is free to start: [quickstart](https://checkbox.site/docs/quickstart), or connect your coding assistant to the MCP server at
`https://app.checkbox.site/mcp`.

```bash
checkbox check disclosure --text "Start your free trial today! Cancel anytime." \
  --price 19.99 --interval month --trial-days 14 --offline
```

> **Not legal advice**
>
> A summary of public enforcement and litigation for builders, not legal advice. Case outcomes and settlement figures are
> reported from public sources and law-firm summaries, are not precedent, and may change on appeal. Checkbox reports
> automated assessments of what it can observe; it does not make a business "compliant" or protect it from claims.