GLOSSARY · BUDGETING, SPENDING & SAVING

Automatic renewal

A sales arrangement in which a subscription continues and is billed again unless the customer acts to stop it; regulators call it a negative option. In the United States, the Restore Online Shoppers' Confidence Act requires online sellers to disclose the terms clearly, get express consent and provide a simple way to stop the charges. Many states add their own rules on renewal reminders and cancellation.

Also called: auto-renewal, negative option, recurring billing, continuity plan
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