How must a Massachusetts business let customers cancel an auto-renewal?
Quick answer
Massachusetts rule 940 CMR 38.05(3) says any subscription or membership that renews automatically needs a simple way to cancel that stops future charges immediately. It must be at least as easy as signing up and offered through the same channel: the same website for online sign-ups, a promptly answered phone line, and an online or phone option for in-store sign-ups.
What does the law say? Key facts and official sources
| Item | What the law says | Source |
|---|---|---|
| Who is covered | Advertising, marketing or offers targeted to, or resulting in a sale in, Massachusetts, for products bought for personal, family or household use (38.01-38.03) | 940 CMR 38.00 (Mass. AG) |
| The rule | Failing to provide a simple mechanism to cancel a negative option feature, avoid being charged and immediately stop any recurring charges is an unfair and deceptive practice (38.05(3)) | 940 CMR 38.00 (Mass. AG) |
| As easy as sign-up | The mechanism must be at least as easy to access and use as the method the consumer used to sign up (38.05(3)(a)) | 940 CMR 38.00 (Mass. AG) |
| Same channel | At a minimum, through the same medium used to sign up (Internet, telephone, mail or in person); for online sign-ups, through the same website or app (38.05(3)(b)1) | 940 CMR 38.00 (Mass. AG) |
| Phone cancel | A telephone number whose calls are answered promptly during normal business hours and cost no more than the sign-up call (38.05(3)(b)2) | 940 CMR 38.00 (Mass. AG) |
| In-person sign-ups | Cancel must be available online or by phone (meeting the rules above), plus, where practical, an in-person method similar to sign-up (38.05(3)(b)3) | 940 CMR 38.00 (Mass. AG) |
| Tell them before they buy | Cancel instructions must be disclosed clearly and in writing before purchase (38.05(2)(c)) | 940 CMR 38.00 (Mass. AG) |
| Start date | Applies to acts committed or practices in force as of September 2, 2025 (38.09) | 940 CMR 38.00 (Mass. AG) |
| Penalty | No separate dollar fine in the rule itself. A violation is an unfair or deceptive practice under M.G.L. c. 93A, s. 2; in an Attorney General case the court may order a civil penalty of up to $5,000 for each violation if the business knew or should have known (c. 93A, s. 4) | M.G.L. c. 93A, s. 4 |
| Last verified | October 29, 2026 | Astor Ventures |
Can I make online customers call to cancel?
No, not as the only route. For an online sign-up the simple cancel mechanism must be available through the same website or app the customer used (38.05(3)(b)1). Offering a phone line as well is allowed.
Can I make a save offer first?
The rule text does not mention retention offers. It does require the cancel method to be at least as easy as signing up and to stop recurring charges immediately (38.05(3)), so any step that makes cancelling harder than joining is a risk.
What about gym memberships sold at the front desk?
In-person sign-ups need an online or phone cancel option that meets the website and phone rules, and, where practical, an in-person option too (38.05(3)(b)3).
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What else do people ask?
Does it cover business customers?
No. The rule protects natural persons buying for personal, family or household use (38.01, 38.03).
When did it start?
September 2, 2025 (38.09).
What is the fine?
The rule has no fine of its own; the Attorney General can seek up to $5,000 per violation under M.G.L. c. 93A, s. 4.
Is this legal advice?
No. General information only.
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