State lawmakers push forward on subscription transparency as federal court tosses FTC rule.
State Rep. Joe Ciresi is leading a renewed push in Pennsylvania to make it easier for consumers to cancel online subscriptions, after a federal court overturned similar nationwide protections proposed by the Federal Trade Commission.
The Pennsylvania House passed two bipartisan bills aimed at curbing so-called “negative option” agreements, which are subscription models that automatically renew unless a customer opts out. They also require services be as easy to cancel online as they are to sign up. The state’s efforts come just as a federal appeals court rejected the FTC’s “click-to-cancel” rule, citing procedural failures in the agency’s economic review.
“We can take control of the situation quickly here in Pennsylvania, because it is an issue,” said Ciresi, a Democrat from Montgomery County. “Everyone can relate to it somehow.”
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“My House Bill 1299 would empower Pennsylvania’s consumers by creating a ‘click to cancel’ rule to make it easy for them to cancel unwanted subscriptions online instead of having to speak with a customer service representative and listen to lengthy sales…— Newstalk1037fm (@Newstalk1037fm) July 8, 2025
Ciresi’s bill focuses on online subscription services, mandating that if a consumer enrolls online, they must also be able to cancel through the same method. The bill also requires that companies provide clear information about renewal terms and cancellation procedures.
The companion bill, sponsored by Rep. Lisa Borowski, D-Delaware County, targets deceptive renewal practices, especially those tied to free trials that quietly convert into paid plans. Her legislation would require advance notice of renewals and allow consumers to opt out using the same channel they used to enroll.
The measures are modeled after the FTC rule introduced under President Biden’s administration, which was delayed earlier this year and ultimately struck down Tuesday. The rule faced legal challenges from business groups concerned about lost revenue from automatic renewals.
Borowski emphasized that the goal is to shift the burden away from consumers. Her bill, she said, ensures businesses “provide value to customers instead of simply betting they will forget to cancel a subscription they don’t really need.”
Ciresi noted that the legislation reflects complaints he’s heard from constituents, staffers, and even his own family. “We got pushback from some companies, but we worked through it,” he said. “I’m not here to hurt any business, I’m here to help the consumer.”
The proposed laws would not apply to services regulated under other frameworks, such as public utilities, telecom providers, or health clubs governed by the state’s Health Club Act.
Both bills passed the House with strong bipartisan support and now head to the Senate. If approved and signed by Governor Josh Shapiro, Pennsylvania would join a growing list of states including New York, California, Minnesota, Tennessee, and Virginia that have enacted similar measures following the FTC’s stalled federal effort.
