Michigan lawmakers have introduced a bill that could reshape how subscription businesses operate in the state. The legislation would require companies to provide clear renewal terms, advance notices, and simple online cancellation — while banning cancellation fees. For subscription executives, the move adds another layer to the growing patchwork of compliance obligations across the U.S.

On August 27, 2025, Michigan legislators introduced House Bill 4826 and companion Senate bills, a “Click-to-Cancel” package aimed at protecting consumers from hidden or hard-to-stop subscription charges. If enacted, the bills would amend the Michigan Consumer Protection Act to:

• Require clear disclosure of automatic renewal terms at signup.

• Mandate advance notice — typically 30–60 days — before a subscription renews.

• Ensure that if a subscription was purchased online, it can be cancelled online without additional hurdles.

• Prohibit penalty or cancellation fees, including after free trials.

• Classify unfair cancellation practices as unlawful, enforceable by both the state Attorney General and consumers.

The legislation is currently pending before the House Committee on Economic Competitiveness.

Broader Context

The proposal mirrors efforts at the federal level, where the FTC’s “Click-to-Cancel” rule sought to make cancellations as simple as sign-ups. That rule was struck down earlier this year by a U.S. appeals court, leaving room for states to act independently. California, New York, Massachusetts, and Colorado already have similar statutes, and Michigan now joins the list of states pressing for stronger consumer protections in subscription billing.

For operators, the implications are clear:

• Compliance complexity — Companies serving Michigan customers will need to add the state to their compliance maps, ensuring renewal notices and online cancellation flows meet new standards.

• Operational adjustments — Payment systems, CRM processes, and customer portals may need reconfiguration to accommodate clear disclosures and friction-light exits.

• Competitive impact — Businesses that proactively implement transparent cancellation may gain trust, reducing churn backlash and regulatory risk at the same time.

Because the bill was just introduced in late August, hearings and votes are still ahead. The measure is unlikely to become law before the end of 2025, but could advance in early 2026 if it clears the committee. Subscription companies should not wait, however; similar rules are spreading quickly, regardless of the legislative calendar.

INSIDER TAKE

This is another signal that cancellation practices are becoming a regulatory flashpoint. Whether or not Michigan’s bill passes this session, the direction of travel is clear: regulators and lawmakers view “hard to cancel” flows as consumer harm. Subscription executives should treat simple, online cancellation and proactive renewal notices as baseline best practices, not just compliance checkboxes.

Those who act now will not only avoid fines but also strengthen customer trust — and, in many cases, retention.