Patchwork of State Automatic Renewal Requirements Expands with Updated Colorado Law

Colorado has joined a growing list of states tightening automatic renewal requirements for subscription-based businesses.

This move by Colorado closely follows amendments to the California Automatic Renewal Law (ARL) which took effect on July 1, 2025 and introduced stricter requirements for businesses offering autorenewal or continuous service subscriptions. These amendments made the California ARL the strictest set of requirements for companies operating subscription-based businesses, especially those serving California consumers. The California ARL applies to contracts with California consumers (B2C sales) and aims to increase consumer transparency and control over subscription-based services by preventing hidden autorenewals, surprise charges, and barriers to cancellation.

Since California’s ARL amendments went into effect, other states are now moving in a similar direction with their own ARL laws, such as Arkansas (effective 8/3/25), Massachusetts (effective 9/2/25), New York (effective 11/5/25), Maine (effective 1/1/26). The Federal Trade Commission’s updated Negative Option Rule (commonly referred to as the “Click-to-Cancel Rule”) was scheduled to take effect on July 14, 2025 but was struck down by a federal court, thus preventing it from taking effect as planned. The FTC has since reopened the rulemaking process, though timing for any new rule remains uncertain.

On August 6, 2025, amendments to the Colorado ARL took effect, imposing stricter disclosure, notice, and cancellation requirements for B2C sales. On February 16, 2026, these requirements will notably extend to business-to-business subscriptions (B2B sales) as well.

Businesses operating nationally must therefore navigate a patchwork of overlapping—but not identical—state requirements and must ensure that their practices align with distinct requirements for consent, cancellation, and notifications.

Given that Colorado and California now represent two of the most comprehensive automatic renewal regimes, it would be prudent for Colorado-based businesses that have a national customer base to compare both states’ requirements to ensure their subscription practices satisfy the strictest applicable standard. The key requirements under the California and Colorado autorenewal laws are as follows:

• Clear and Conspicuous Disclosures. Both California and Colorado require sellers to clearly disclose automatic renewal terms before obtaining billing information or consent. Required disclosures include that the subscription will automatically renew, renewal term length, recurring charges, and cancellation procedures.
• Stronger Consent Requirements. Under the California ARL, sellers must secure “affirmative consent” to the agreement containing the autorenewal offer terms, and a separate “express affirmative consent” to the autorenewal offer terms themselves. In practice, this means sellers must ensure that:
  • Customers check a box (or click “I agree” or other similar button or means of affirmative consent) confirming their acceptance of the agreement as a whole; and
  • Customers check an additional unchecked checkbox tied specifically to the autorenewal offer terms.

While the Colorado ARL requires sellers to obtain the customer’s consent to the automatic renewal terms, it does not specifically require “affirmative consent” or “express affirmative consent” from the customer.  Under the California ARL, businesses must retain proof of affirmative consent for the longer of three years or one year after cancellation. The Colorado ARL does not include specific recordkeeping requirements.

• Same‑Medium Cancellation. Under the California ARL, Customers must be able to cancel the subscription using the same method they used to sign up. For example, online subscribers must be able to cancel online; phone subscribers need a toll-free cancellation line. Cancellation must be as straightforward as enrollment. Colorado similarly requires a “simple, cost-effective, timely, easy-to-use, and readily-accessible” cancellation mechanism, including a “one-step online cancellation” method for subscriptions entered into online.
• Simplified Cancellation.  Both California and Colorado permit businesses to present discounts or retention benefits (often called “save offers”) during the cancellation process, but California imposes more specific requirements. California mandates that businesses provide a clear “Click to Cancel” (or similarly worded) link or button that immediately stops renewal whenever a save offer is presented, and for phone cancellations, businesses must inform customers they can cancel by saying “cancel” before pitching retention offers. Colorado similarly permits save offers but takes a broader approach, simply prohibiting practices that unreasonably obstruct or delay cancellation without prescribing specific button language or phone script requirements.
• Advance Notices of Changes. The California ARL also requires businesses to notify customers at least 7 days and no more than 30 days before changing subscription terms (e.g., price increases). This notice must include the new price and cancellation instructions. Colorado’s law similarly requires advance notice of  material changes and clear information on how to cancel.
• Annual Renewal Reminders. The California ARL mandates renewal reminders 15 to 45 days before annual renewals and 3 to 21 days before free trials over 31 days end. The Colorado ARL requires reminders 25 to 40 days before each annual renewal and, for monthly or shorter-term subscriptions, before the renewal that extends the subscription past its one-year anniversary. Both states require reminders to include cancellation instructions.
• No Misrepresentations. The California ARL also prohibits misleading statements and misrepresentations about subscriptions as well as about the underlying good or service. Colorado likewise treats deceptive autorenewal practices as unfair or deceptive trade practices.
• Other Rules Remain. Previous requirements under California and Colorado laws, FTC rules, and other state ARLs still apply (e.g., clear disclosure of terms before checkout, post-purchase confirmation with cancellation instructions, and no pre-checked boxes).

Subscription billing with autorenewal or continuous service offers can drive predictable, recurring revenue, but regulators have made it clear: consumers and business customers must not be “trapped” in unwanted contracts. Generally, that means that customers are aware of what they are agreeing to and must be able to cancel an agreement as easily as they entered it. As of July 2025, California imposed heightened contractual requirements for subscription sellers, leading to a wave of other states adding stricter automatic renewal laws. Colorado’s amendments signal that similar expectations are expanding beyond B2C transactions to B2B transactions. For many of our clients, this means investing effort now to redesign your subscription experience for transparency and simplicity and to ensure that records of customer consent are maintained for the applicable time period.

When in doubt, aligning your subscription practices with the strictest applicable state requirements that apply to your company can reduce legal risk, limit chargebacks, build customer trust, and help you future-proof against continued state-level expansion of autorenewal laws.

For tailored guidance on implementing these requirements—or auditing your current flows—please contact Charu Ganesh at [email protected], Chris Achatz at [email protected], or  our team at [email protected].