Washington compliance for subscription-only businesses

I conducted multi-source research on Washington compliance for subscription-only businesses, focusing on state statutes, pending/active legislation, Washington Department of Revenue guidance, Secretary of State requirements, and Attorney General/consumer-protection resources.

Below is a concise summary of the research steps taken, core findings that will inform the blog content, and links with verbatim excerpts supporting each point. Summary of research steps and sources reviewed: - Ran targeted web searches for Washington subscription law, automatic renewal (negative option) requirements, tax treatment of subscriptions and digital/IT services, business registration/licensing, consumer protections, and unclaimed property. - Retrieved and reviewed official Washington legislative text (SB 5207, 2025 Regular Session) addressing refunds and disclosures for term-based electronic media subscriptions. - Scraped Washington State Department of Revenue pages (site index and notice of services newly subject to retail sales tax effective Oct 1, 2025) for tax changes affecting subscription/digital services. - Retrieved Washington Secretary of State Corporations & Charities pages for LLC formation, annual reporting and public filing requirements (including note about BOI/FinCEN guidance change March 26, 2025). - Identified Attorney General Office resources for consumer protection, data-breach resources and complaint/enforcement channels.

Key findings relevant to compliance (state-specific and practical): 1) Automatic renewal / negative-option & refunds (legislative developments) - Washington SB 5207 (2025) would require electronic media services to disclose refund schedules and to disburse pro rata refunds when a consumer cancels a subscription; it treats violations as subject to the Consumer Protection Act and limits enforcement to the Attorney General (no private right of action in the bill).

Businesses offering subscription-based electronic media should prepare to provide conspicuous disclosures at signup and be ready to issue pro rata refunds within a reasonable time (the bill sets a six-month maximum) if similar legislation is enacted. - Enforcement note: the bill text ties violations to the consumer protection act and indicates only the Attorney General may bring an action under this chapter. 2) Federal rule / click-to-cancel context - Washington legislative analysis and commentary reference the Federal Trade Commission’s Click-to-Cancel rule (effective Jan 15, 2025).

Subscription businesses should ensure the subscription flow includes a simple, “click-to-cancel” method (an accessible online cancellation mechanism) and clear renewal/cancellation notices to comply with FTC and evolving state ARL-like requirements. 3) Tax treatment — sales tax & B&O implications (DOR) - Washington Department of Revenue identifies new business activities that will be included in the definition of retail sales; the site notes businesses must begin collecting sales tax on these services on October 1,

I conducted multi-source research on Washington compliance for subscription-only businesses, focusing on state statutes, pending/active legislation, Washington Department of Revenue guidance, Secretary of State requirements, and Attorney General/consumer-protection resources.

Below is a concise summary of the research steps taken, core findings that will inform the blog content, and links with verbatim excerpts supporting each point. Summary of research steps and sources reviewed:

- Retrieved and reviewed official Washington legislative text (SB 5207, 2025 Regular Session) addressing refunds and disclosures for term-based electronic media subscriptions. - Scraped Washington State Department of Revenue pages (site index and notice of services newly subject to retail sales tax effective Oct 1, 2025) for tax changes affecting subscription/digital services. - Retrieved Washington Secretary of State Corporations & Charities pages for LLC formation, annual reporting and public filing requirements (including note about BOI/FinCEN guidance change March 26, 2025).

1) Automatic renewal / negative-option & refunds (legislative developments) - Washington SB 5207 (2025) would require electronic media services to disclose refund schedules and to disburse pro rata refunds when a consumer cancels a subscription; it treats violations as subject to the Consumer Protection Act and limits enforcement to the Attorney General (no private right of action in the bill).

Businesses offering subscription-based electronic media should prepare to provide conspicuous disclosures at signup and be ready to issue pro rata refunds within a reasonable time (the bill sets a six-month maximum) if similar legislation is enacted.

2) Federal rule / click-to-cancel context - Washington legislative analysis and commentary reference the Federal Trade Commission’s Click-to-Cancel rule (effective Jan 15, 2025). Subscription businesses should ensure the subscription flow includes a simple, “click-to-cancel” method (an accessible online cancellation mechanism) and clear renewal/cancellation notices to comply with FTC and evolving state ARL-like requirements. 3) Tax treatment — sales tax & B&O implications (DOR) - Washington Department of Revenue identifies new business activities that will be included in the definition of retail sales; the site notes businesses must begin collecting sales tax on these services on October 1,

• Ran targeted web searches for Washington subscription law, automatic renewal (negative option) requirements, tax treatment of subscriptions and digital/IT services, business registration/licensing, consumer protections, and unclaimed property.
• Identified Attorney General Office resources for consumer protection, data-breach resources and complaint/enforcement channels. Key findings relevant to compliance (state-specific and practical):
• Enforcement note: the bill text ties violations to the consumer protection act and indicates only the Attorney General may bring an action under this chapter.

Washington has been expanding sales tax coverage of IT and digital services — subscription businesses must review DOR guidance to determine whether their service (digital products, streaming, software-as-a-service, IT/digital subscriptions) is taxable and whether retail sales tax, use tax, and business & occupation (B&O) tax apply. - Practical step

If taxability is unclear, request a binding ruling from the Washington DOR.

Business formation, licensing, and ongoing filing requirements (Secretary of State & DOR) - Form your LLC or other entity with the Washington Secretary of State and maintain active status by filing required annual reports (SOS Corporations & Charities division). Also register with the Department of Revenue for a business license / tax registration and obtain any required local/city business licenses. - Note from SOS

Corporations & Charities filing system, express annual report search, and resources for small businesses and filing obligations.

Consumer protection & enforcement (Attorney General) - The Washington Attorney General’s office handles consumer protection enforcement and provides consumer-facing resources (file a complaint; scam alerts). Subscription businesses must ensure compliance with consumer protection laws (RCW chapter 19.86) and AG guidance; transparency, accurate representations, and fair cancellation/refund processes reduce legal risk.

Data/privacy and breach obligations - The Attorney General site hosts data breach resources and other consumer-protection materials. Subscription businesses handling personal data should follow breach-notification requirements, implement reasonable data-security practices, and review any Washington privacy legislation or rulemaking affecting consumer data (monitor AGO and DOR guidance and rulemaking agendas).

Unclaimed property and prepaid balances - Prepaid subscriptions, unused credits, or account balances may become unclaimed property under state unclaimed property rules. Businesses should review Washington State Treasurer / unclaimed property guidance to establish appropriate escheat procedures and reporting. Practical compliance checklist (what the blog will advise)

- Entity setup & registrations: register LLC with SOS; obtain WA business license and register with DOR; check city/local license rules. - Tax: classify your subscription offering for Washington tax purposes (retail sales tax vs. exempt service vs. digital product); collect sales tax where required starting Oct 1, 2025 for newly taxable services; file and remit B&O tax as applicable; seek a DOR ruling if uncertain. - Terms & disclosures: make renewal terms conspicuous at signup, include refund/cancellation policy and any cancellation fees, follow any upcoming SB-like disclosure rules. - Cancellation & refunds: implement easy online cancellation (FTC click-to-cancel), provide pro rata refunds where required/expected by law, maintain records of consent and renewals. - Consumer protections: adopt clear billing descriptions on customer statements, honor refund/notice rules, and monitor AGO enforcement trends. - Data & privacy: implement data security, breach response plan, and comply with any state breach notification or privacy laws. - Unclaimed property: maintain systems to track customer balances and report/ remit unclaimed property per Treasurer guidance. - Documentation & auditability: store sale records, consents, renewal notices, cancellation requests, and tax filings for defense in audits or enforcement actions. Recommended next research steps / materials to pull into the blog (if you want me to proceed to drafting): - Pull official DOR pages on specific tax categories: digital goods, software-as-a-service, streaming, IT/digital services newly taxable (link: services-newly-subject-retail-sales-tax). - Extract the FTC Click-to-Cancel final rule text and guidance. - Obtain AG consumer-protection guidance or enforcement alerts relating to subscriptions or recurring billing. - Get state Treasurer unclaimed property policy on prepaid/unused subscription balances.