Negative option billing
You are charged unless you act to stop it.
Negative option billing means silence counts as consent. A free trial that converts to a paid subscription unless cancelled is the everyday example.
The practice is lawful when disclosed properly and billed with the required notice. Federal and state auto-renewal rules set out what "properly" means, and the gap between the rule and the checkout flow is where cases come from.
General information, not legal advice. Definitions vary by jurisdiction.
Related terms
- Class action - One lawsuit brought on behalf of everyone harmed the same way.
- Class representative - The named person who stands in for the whole class.
- Class certification - The court ruling that lets one case speak for everyone.
- Arbitration clause - Contract language sending disputes to a private forum instead of court.
- Class-action waiver - A term saying you may only bring a claim for yourself, never as a group.
- Unconscionability - A contract term so one-sided a court refuses to enforce it.
- Contract of adhesion - A take-it-or-leave-it contract with no room to negotiate.
- Assent - Whether you actually agreed, and how the company proved it.