New York AG Sues Major Retailer Over 'Subscription Trap' Practices

The New York Attorney General filed suit against a major national retailer, alleging the company used "dark patterns" to enroll consumers in subscription programs and then made cancellation unreasonably difficult.

The Allegations

• **Deceptive enrollment:** Consumers were enrolled in auto-renewing memberships through pre-checked boxes during checkout, without clear disclosure of recurring charges.
• **Cancellation obstacles:** The cancellation process required multiple steps, including mandatory "retention offers" and phone calls, despite the subscription being initiated online.
• **Failure to send renewal notices:** The company did not send pre-renewal reminders before charging consumers for the next billing cycle.

Compliance Lessons

1. **No pre-checked enrollment boxes.** Subscription enrollment must be affirmative — the consumer must actively opt in, not opt out. 2. **Cancellation must match enrollment.** If a consumer can sign up online, they must be able to cancel online. The FTC Click-to-Cancel rule codifies this federally, and New York's GBL § 527-a has similar requirements. 3. **Send renewal reminders.** Many states now require advance notice before auto-renewal charges. Best practice: at least 30 days for annual, 7 days for monthly. 4. **No "save" screens during cancellation.** Mandatory retention offers that delay cancellation are increasingly viewed as dark patterns by regulators.

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**Disclaimer:** This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice specific to your business.