USA compliance for subscription e-commerce

The landscape of USA compliance for subscription e-commerce is complex and constantly evolving, requiring US business owners and LLC founders to navigate a myriad of federal and state regulations. Key areas of compliance include automatic renewal laws, data privacy, sales tax, payment card industry standards, and marketing regulations.Automatic Renewal Laws:Both federal and state governments are actively regulating automatic renewal subscriptions.

The Federal Trade Commission (FTC) has amended its Negative Option Rule, with enforcement beginning July 14, 2025. These amendments require businesses to obtain separate, affirmative consent for the negative option feature of a subscription.

States are also enacting and updating their own automatic renewal laws, often imposing stricter requirements. For instance:New York (effective November 5, 2025): Requires businesses to obtain affirmative consent for price increases or allow penalty-free cancellation within 14 days of the increase.

It also mandates providing cancellation options through the same medium as signup and sending subscription reminders for free trial periods exceeding one month, 3 to 21 days before the cancellation deadline.California (effective July 1, 2025): Amendments clarify that offering discounts or retention benefits during cancellation is permissible if a prominent cancellation button is present.

It also requires "express" affirmative consent for automatic renewals, annual reminders, and notification of material changes 7-30 days prior to their effective date. Businesses must also allow cancellation through the same medium as signup.General State Requirements: Many states, including California, New York, and others like Arkansas, Georgia, Illinois, Oregon, and Virginia, require clear and conspicuous disclosures of renewal terms, cancellation policies, recurring charges, and the length of the subscription term before a consumer accepts an offer.

Businesses must also provide an acknowledgment of the terms and a cost-effective, timely, and simple cancellation procedure.Data Privacy Laws:The US lacks a single comprehensive federal data privacy law, instead relying on a sectorial approach at the federal level and a growing number of state-specific laws.

The FTC Act broadly prohibits unfair or deceptive practices, including those related to data security. Key state laws include:California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA): These laws apply to both B2B and B2C consumers and grant rights such as notice about data practices, access, portability, deletion, correction, and opt-out rights for targeted advertising.

California is also issuing new regulations related to cybersecurity, risk assessments, and automated decision-making technology.Other State Laws: As of late 2025, at least 19 other US states have enacted consumer privacy laws, with some becoming effective in 2025 and 2026.

These include Colorado, Connecticut, Delaware, Indiana, Iowa, Kentucky, Maryland, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, Oregon, Rhode Island, Tennessee, Texas, Utah, and Virginia. While requirements vary, they generally apply to personal data and grant consumers various rights.Cybersecurity: E-commerce businesses must ensure "reasonable" security measures, proportional to the nature and size of the business, the volume and sensitivity of personal data, and associated risks.

PCI DSS compliance is mandatory for businesses accepting credit or debit card payments.Sales Tax:Sales tax compliance for e-commerce LLCs is particularly complex due to operations across multiple states.

All 50 states impose specific sales tax requirements. Businesses must understand "sales tax nexus," which is the connection between a business and a state that creates a tax obligation.

Economic nexus, in particular, applies to businesses that meet specific transaction or revenue thresholds in a state, even if they don The landscape of USA compliance for subscription e-commerce is complex and constantly evolving, requiring US business owners and LLC founders to navigate a myriad of federal and state regulations.

Key areas of compliance include automatic renewal laws, data privacy, sales tax, payment card industry standards, and marketing regulations.Automatic Renewal Laws:Both federal and state governments are actively regulating automatic renewal subscriptions.

The Federal Trade Commission (FTC) has amended its Negative Option Rule, with enforcement beginning July 14, 2025. These amendments require businesses to obtain separate, affirmative consent for the negative option feature of a subscription.

States are also enacting and updating their own automatic renewal laws, often imposing stricter requirements. For instance:New York (effective November 5, 2025): Requires businesses to obtain affirmative consent for price increases or allow penalty-free cancellation within 14 days of the increase.

It also mandates providing cancellation options through the same medium as signup and sending subscription reminders for free trial periods exceeding one month, 3 to 21 days before the cancellation deadline.California (effective July 1, 2025): Amendments clarify that offering discounts or retention benefits during cancellation is permissible if a prominent cancellation button is present.

It also requires "express" affirmative consent for automatic renewals, annual reminders, and notification of material changes 7-30 days prior to their effective date. Businesses must also allow cancellation through the same medium as signup.General State Requirements: Many states, including California, New York, and others like Arkansas, Georgia, Illinois, Oregon, and Virginia, require clear and conspicuous disclosures of renewal terms, cancellation policies, recurring charges, and the length of the subscription term before a consumer accepts an offer.

Businesses must also provide an acknowledgment of the terms and a cost-effective, timely, and simple cancellation procedure.Data Privacy Laws:The US lacks a single comprehensive federal data privacy law, instead relying on a sectorial approach at the federal level and a growing number of state-specific laws.

The FTC Act broadly prohibits unfair or deceptive practices, including those related to data security. Key state laws include:California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA): These laws apply to both B2B and B2C consumers and grant rights such as notice about data practices, access, portability, deletion, correction, and opt-out rights for targeted advertising.

California is also issuing new regulations related to cybersecurity, risk assessments, and automated decision-making technology.Other State Laws: As of late 2025, at least 19 other US states have enacted consumer privacy laws, with some becoming effective in 2025 and 2026.

These include Colorado, Connecticut, Delaware, Indiana, Iowa, Kentucky, Maryland, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, Oregon, Rhode Island, Tennessee, Texas, Utah, and Virginia. While requirements vary, they generally apply to personal data and grant consumers various rights.Cybersecurity: E-commerce businesses must ensure "reasonable" security measures, proportional to the nature and size of the business, the volume and sensitivity of personal data, and associated risks.

PCI DSS compliance is mandatory for businesses accepting credit or debit card payments.Sales Tax:Sales tax compliance for e-commerce LLCs is particularly complex due to operations across multiple states.

All 50 states impose specific sales tax requirements. Businesses must understand "sales tax nexus," which is the connection between a business and a state that creates a tax obligation.

Economic nexus, in particular, applies to businesses that meet specific transaction or revenue thresholds in a state, even if they don

The landscape of USA compliance for subscription e-commerce is complex and constantly evolving, requiring US business owners and LLC founders to navigate a myriad of federal and state regulations. Key areas of compliance include automatic renewal laws, data privacy, sales tax, payment card industry standards, and marketing regulations.Automatic Renewal Laws:Both federal and state governments are actively regulating automatic renewal subscriptions.

The Federal Trade Commission (FTC) has amended its Negative Option Rule, with enforcement beginning July 14, 2025. These amendments require businesses to obtain separate, affirmative consent for the negative option feature of a subscription.

States are also enacting and updating their own automatic renewal laws, often imposing stricter requirements. For instance:New York (effective November 5, 2025): Requires businesses to obtain affirmative consent for price increases or allow penalty-free cancellation within 14 days of the increase.

It also mandates providing cancellation options through the same medium as signup and sending subscription reminders for free trial periods exceeding one month, 3 to 21 days before the cancellation deadline.California (effective July 1, 2025): Amendments clarify that offering discounts or retention benefits during cancellation is permissible if a prominent cancellation button is present.

It also requires "express" affirmative consent for automatic renewals, annual reminders, and notification of material changes 7-30 days prior to their effective date. Businesses must also allow cancellation through the same medium as signup.General State Requirements: Many states, including California, New York, and others like Arkansas, Georgia, Illinois, Oregon, and Virginia, require clear and conspicuous disclosures of renewal terms, cancellation policies, recurring charges, and the length of the subscription term before a consumer accepts an offer.

Businesses must also provide an acknowledgment of the terms and a cost-effective, timely, and simple cancellation procedure.Data Privacy Laws:The US lacks a single comprehensive federal data privacy law, instead relying on a sectorial approach at the federal level and a growing number of state-specific laws.

The FTC Act broadly prohibits unfair or deceptive practices, including those related to data security. Key state laws include:California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA): These laws apply to both B2B and B2C consumers and grant rights such as notice about data practices, access, portability, deletion, correction, and opt-out rights for targeted advertising.

California is also issuing new regulations related to cybersecurity, risk assessments, and automated decision-making technology.Other State Laws: As of late 2025, at least 19 other US states have enacted consumer privacy laws, with some becoming effective in 2025 and 2026.

These include Colorado, Connecticut, Delaware, Indiana, Iowa, Kentucky, Maryland, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, Oregon, Rhode Island, Tennessee, Texas, Utah, and Virginia. While requirements vary, they generally apply to personal data and grant consumers various rights.Cybersecurity: E-commerce businesses must ensure "reasonable" security measures, proportional to the nature and size of the business, the volume and sensitivity of personal data, and associated risks.

PCI DSS compliance is mandatory for businesses accepting credit or debit card payments.Sales Tax:Sales tax compliance for e-commerce LLCs is particularly complex due to operations across multiple states.

All 50 states impose specific sales tax requirements. Businesses must understand "sales tax nexus," which is the connection between a business and a state that creates a tax obligation.

Economic nexus, in particular, applies to businesses that meet specific transaction or revenue thresholds in a state, even if they don The landscape of USA compliance for subscription e-commerce is complex and constantly evolving, requiring US business owners and LLC founders to navigate a myriad of federal and state regulations.

Key areas of compliance include automatic renewal laws, data privacy, sales tax, payment card industry standards, and marketing regulations.Automatic Renewal Laws:Both federal and state governments are actively regulating automatic renewal subscriptions.

The Federal Trade Commission (FTC) has amended its Negative Option Rule, with enforcement beginning July 14, 2025. These amendments require businesses to obtain separate, affirmative consent for the negative option feature of a subscription.

States are also enacting and updating their own automatic renewal laws, often imposing stricter requirements. For instance:New York (effective November 5, 2025): Requires businesses to obtain affirmative consent for price increases or allow penalty-free cancellation within 14 days of the increase.

It also mandates providing cancellation options through the same medium as signup and sending subscription reminders for free trial periods exceeding one month, 3 to 21 days before the cancellation deadline.California (effective July 1, 2025): Amendments clarify that offering discounts or retention benefits during cancellation is permissible if a prominent cancellation button is present.

It also requires "express" affirmative consent for automatic renewals, annual reminders, and notification of material changes 7-30 days prior to their effective date. Businesses must also allow cancellation through the same medium as signup.General State Requirements: Many states, including California, New York, and others like Arkansas, Georgia, Illinois, Oregon, and Virginia, require clear and conspicuous disclosures of renewal terms, cancellation policies, recurring charges, and the length of the subscription term before a consumer accepts an offer.

Businesses must also provide an acknowledgment of the terms and a cost-effective, timely, and simple cancellation procedure.Data Privacy Laws:The US lacks a single comprehensive federal data privacy law, instead relying on a sectorial approach at the federal level and a growing number of state-specific laws.

The FTC Act broadly prohibits unfair or deceptive practices, including those related to data security. Key state laws include:California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA): These laws apply to both B2B and B2C consumers and grant rights such as notice about data practices, access, portability, deletion, correction, and opt-out rights for targeted advertising.

California is also issuing new regulations related to cybersecurity, risk assessments, and automated decision-making technology.Other State Laws: As of late 2025, at least 19 other US states have enacted consumer privacy laws, with some becoming effective in 2025 and 2026.

These include Colorado, Connecticut, Delaware, Indiana, Iowa, Kentucky, Maryland, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, Oregon, Rhode Island, Tennessee, Texas, Utah, and Virginia. While requirements vary, they generally apply to personal data and grant consumers various rights.Cybersecurity: E-commerce businesses must ensure "reasonable" security measures, proportional to the nature and size of the business, the volume and sensitivity of personal data, and associated risks.

PCI DSS compliance is mandatory for businesses accepting credit or debit card payments.Sales Tax:Sales tax compliance for e-commerce LLCs is particularly complex due to operations across multiple states.

All 50 states impose specific sales tax requirements. Businesses must understand "sales tax nexus," which is the connection between a business and a state that creates a tax obligation.

Economic nexus, in particular, applies to businesses that meet specific transaction or revenue thresholds in a state, even if they don