Companies must return actual money—not store credit or gift cards—when they charge for subscriptions without your express consent or fail to disclose the terms. Under federal law, if a company violated the FTC Negative Option Rule by not obtaining affirmative consent before enrolling you in automatic renewal, you're entitled to a full refund of all charges, including past renewals.
What companies must return depends on *how* they violated the rules. If they failed to disclose the cancellation method, charged you after you tried to cancel, or continued billing after a free trial without consent, the entire charge is refundable—no prorating. Different states impose different standards, but federal law sets a floor no company can fall below.
Table of Contents
- When Are You Entitled to a Full Refund?
- Why Store Credit Does Not Count as a Refund
- How to Get Your Money Back
- California's Stricter Standard for Automatic Renewals
- What Violations Cost Companies
- Frequently Asked Questions
When Are You Entitled to a Full Refund?
You qualify for a full refund if the company did any of the following: Under the Negative Option Rule, a free trial conversion or charge after a cancellation attempt triggers a full refund of those charges, not a prorated amount. The violation itself—not the reasonableness of a discount—determines what you're owed.
- Enrolled you in a free trial without clearly stating when the charge would begin
- Charged you without getting your express written consent first
- Failed to disclose the cancellation method in the original offer
- Continued billing after you attempted to cancel
- For subscriptions over one year (California only): Missed sending a renewal reminder 15–45 days before the charge date
Why Store Credit Does Not Count as a Refund
The FTC explicitly prohibits companies from issuing store credit, gift cards, or coupons to satisfy subscription refund obligations; only actual monetary refunds to your original payment method comply with federal law. If a company offers you a credit instead of cash, you can reject it. This rule applies whether the company violated consent rules, failed to disclose terms, or made cancellation difficult.
Offering credit is a way companies try to keep the money in their ecosystem. Insisting on a monetary refund to your bank account or card is legally correct and your right to pursue.
How to Get Your Money Back
- *Dispute with your credit card company first.** You have 60 days from the statement date to report the unauthorized or disputed charge. The card issuer must acknowledge your dispute within 30 days and fully resolve it within 90 days. This is often faster than negotiating with the company directly.
- *Contact the company in writing if you prefer.** Send an email or certified letter stating the subscription was unauthorized or improperly disclosed. Reference the Negative Option Rule and cite the specific violation—missing consent, no cancellation method, or continued charging after cancellation. Keep copies of all correspondence.
- *File a complaint if the company ignores you.** Report to the Federal Trade Commission at reportfraud.ftc.gov or your state attorney general's office. California residents have additional leverage under state law.
California's Stricter Standard for Automatic Renewals
California law entitles you to a full refund of all charges—including all past renewals—if a company failed to obtain clear consent, provide disclosures, or offer an easy cancellation method. Additionally, subscriptions with terms of one year or longer must include a reminder sent 15–45 days before each charge, stating the amount and how to cancel. Missing that renewal reminder alone qualifies you for a full refund.
Outside California, state laws vary widely—some require prorated refunds for unused service, while others allow companies to keep the full prepaid amount. Your rights depend on where you live and the nature of the violation. If you signed up for a service offered to California residents, California law may apply even if you live elsewhere.
What Violations Cost Companies
The FTC enforces subscription refund violations aggressively. The penalty is $53,088 per violation. Amazon paid a combined $2.5 billion in penalties and consumer refunds in 2026 for enrollment and cancellation practice violations. When companies lose cases, the FTC typically mandates refunds to thousands of affected consumers—a direct benefit to anyone who files a complaint.
High-profile settlements serve as warnings to other companies. The FTC publishes enforcement actions on its website, so you can see which companies have been caught and what they were forced to repay. If your complaint matches a pattern the FTC has already prosecuted, your case has stronger standing.
Frequently Asked Questions
Can I dispute a subscription charge if I signed the terms upfront?
Yes, if the company failed to disclose the cancellation method, charged you after you tried to cancel, or violated the renewal notice requirement. Signing alone does not waive your right to proper disclosures and an easy way out.
How much time does my credit card company have to refund me?
The card issuer must acknowledge the dispute within 30 days and fully resolve it within 90 days maximum.
If I live outside California, do I get the same refund rights?
Federal law sets a baseline, but state laws vary. Some states require prorated refunds; others allow full retention. Check your state attorney general's office for local subscription laws.
What if the company is no longer in business?
File a credit card dispute immediately. The card issuer will work with the acquiring bank to recover funds even if the merchant has closed.