{"id":352489,"date":"2016-04-04T10:42:01","date_gmt":"2016-04-04T15:42:01","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/consumer-transactions\/buying-plans-and-product-subscriptions.html"},"modified":"2024-01-04T11:10:14","modified_gmt":"2024-01-04T16:10:14","slug":"buying-plans-and-product-subscriptions","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/consumer-transactions\/buying-plans-and-product-subscriptions.html","title":{"rendered":"Buying Plans and Product Subscriptions"},"content":{"rendered":"\n
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Buying Plans and Product Subscriptions<\/h1>\n\n
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\n By Hannah Hilst<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Subscriptions and memberships are purchase plans where consumers regularly receive goods or services in exchange for a recurring fee. These plans can offer benefits like exclusive access and discounts but may have drawbacks like auto-renewal charges and difficult cancellation processes. Understanding the terms, federal protections like the Prenotification Negative Option Rule, and state laws is essential for making informed decisions and avoiding unexpected fees or challenges in managing subscriptions.<\/p>\n\n <\/div>\n\n\n\n

Subscriptions and memberships are unique purchases. You may have a subscription to access a collection of movies. Or, you could use a subscription service for razors and cosmetics. Sometimes, a surprise plan only reveals what product category will arrive, such as curated perfumes or seasonal snack boxes.<\/p>\n

Some consumers find the wrong surprises in their buying plans. They might not realize they will face expensive charges until an auto-renewal kicks in. These plans can also be difficult to cancel.<\/p>\n

If you’re considering signing up for a plan, pause to understand the offer terms fully. Plenty of subscriptions benefit both the buyer and seller, but knowing the cancellation process and your rights before committing\u00a0is still a good idea.<\/p>\n

Three Types of Buying Plans<\/h2>\n

A subscription business model often means the seller regularly\u00a0provides goods and services until the buyer cancels. These plans are also known as negative option programs because the service continues until the buyer expressly chooses to reject it.<\/p>\n

Some plans send physical items like a jar of spice or a bottle of wine. Plans can also involve digital products like ad-free music streaming or online training courses.<\/p>\n

Other buying plans give buyers exclusive opportunities to purchase products. For example, you could have a membership to a wholesale store that lets you buy items in bulk at a discounted price. Or, a membership could give you early access to sales and new product releases from the brand.<\/p>\n

The Buyer Knows the Item Is Coming<\/h3>\n

In this plan type, you know that the seller will deliver an item on a specific date, such as the first day of the month. You must tell the seller if you want to skip an item in a given period. After skipping that delivery, the usual schedule will resume in the next period,\u00a0unless you opt out again or cancel your plan.<\/p>\n

The Buyer Doesn’t Know When an Item Will Come<\/h3>\n

With a continuity plan, the seller doesn’t notify you of an upcoming delivery. You agree to pay for future shipments from the seller whenever they come. You typically aren’t able to opt out of a single delivery. Instead, you’d cancel the entire plan to avoid future purchases.<\/p>\n

The Buyer Pays Membership Fees<\/h3>\n

These plans require you to pay a monthly or yearly membership fee, regardless of whether you purchase an item. For example, you may agree to pay $100 per year for the option to buy discounted items from a catalog.<\/p>\n

Even if you don’t use your membership benefits that year, you must still pay the membership fee. Often, sellers of these plans lure buyers with a\u00a0free trial period<\/a>, but it may come with strings attached.<\/p>\n

Federal Buyer Protection Law<\/h2>\n

Consumer protection laws outline your rights when you buy a subscription or membership. The\u00a0Prenotification Negative Option Rule<\/a>\u00a0is a key federal regulation.<\/p>\n

This rule offers several protections for buyers, including:<\/p>\n