What is Subscription Compliance?
Definition
Adherence to legal and regulatory requirements governing subscription billing, cancellation, and consumer communication.
Understanding Subscription Compliance
Subscription compliance has become increasingly complex as regulations evolve. Key regulations include: FTC's Negative Option Rule (clear disclosure of subscription terms), California's auto-renewal law (conspicuous disclosure and easy cancellation), EU Consumer Rights Directive (14-day cooling-off period), GDPR (data protection for subscribers), and PCI DSS (payment security). Non-compliance can result in significant fines and class-action lawsuits.
For consumers, compliance regulations protect your rights — if a service violates these rules, you have legal recourse through consumer protection agencies and credit card dispute processes.
Related Terms
Consumer Rights
Legal protections for subscription consumers, including rights to cancel, obtain refunds, and receive transparent billing information.
Auto-Renewal
A feature that automatically renews a subscription at the end of each billing cycle without requiring manual action from the user.
Cancellation
The act of ending a subscription, which stops future billing and eventually terminates access to the service.
PCI Compliance
Adherence to the Payment Card Industry Data Security Standard for handling credit card information in subscription billing.