Auto-renewal and subscription laws have the highest average exposure of any e-commerce compliance risk. Class action firms are aggressively targeting DTC brands with unclear cancellation flows.
Add a pre-purchase consent checkbox and cancellation disclosure to drop exposure by 60%.
The Restore Online Shoppers' Confidence Act (ROSCA) is a federal law that requires clear disclosure of subscription terms before charging consumers, affirmative consent to the terms, and a simple mechanism to cancel. Violations can trigger FTC enforcement and private lawsuits.
On top of ROSCA, most states have their own Automatic Renewal Laws (ARLs) with additional requirements. California's ARL is the most aggressive — it requires specific pre-purchase disclosures, a clear consent mechanism, a post-purchase acknowledgment, and an easy online cancellation method.
For DTC brands running subscriptions through Shopify, ReCharge, Bold, or similar tools, compliance gaps are extremely common. The default flows from these platforms often don't meet all the legal requirements, and class action firms know exactly where to look.
Subscription lawsuits follow a predictable pattern. Firms target brands with visible subscription offerings and document every gap:
An investigator subscribes to your product, carefully documenting the purchase flow: what was disclosed, where consent was captured, and what the confirmation email said.
They try to cancel using only the methods advertised. If cancellation requires a phone call, chat with retention, or multiple steps, every friction point is documented.
Screenshots of missing pre-purchase disclosures, unclear consent checkboxes, inadequate confirmation emails, and difficult cancellation flows become the basis of the complaint.
These cases are almost always filed as class actions — every subscriber becomes a potential class member. Exposure scales with your subscriber count, often reaching six figures.
Don't wait for the demand letter.
SuitProof scans your store for these exact vulnerabilities before attorneys do.
Scan My StoreSubscription supplement brand settled after complaint documented missing pre-purchase disclosures and no online cancellation option.
DTC beauty subscription targeted for burying cancellation behind a phone call and lacking required affirmative consent checkbox.
Meal kit company sued under California ARL for failing to send renewal reminders and making cancellation process unclear.
Pet supply subscription brand settled after class action alleged the opt-out process was intentionally confusing.
Prevention costs less than a settlement.
Join the waitlist and scan your store for free.
If you offer subscriptions, check whether these compliance gaps exist in your store:
SuitProof automatically scans your Shopify store for these exact risks. Get on the waitlist for early access and a free compliance scan.
Walks your subscribe-and-save flow checking for required disclosures, consent mechanisms, and cancellation access.
Monitors auto-renewal law requirements across all 50 states so you know which rules apply to your customers.
Tests your cancellation flow from a customer's perspective and flags friction points that create legal exposure.
Subscription flows change with app updates and theme changes. Continuous monitoring catches compliance regressions.
Free during beta · No credit card required
Most compliance gaps are quick fixes — the hard part is knowing they exist. Run your first scan in five minutes and launch with confidence.