The Pennsylvania Office of Attorney General announced that American Mint, LLC d/b/a “American Mint,” will pay $750,000 following an investigation into its use of negative option subscription practices.

The Consent Petition was filed in the Cumberland County Court of Common Pleas (Case No. 2021-03063) and sought to stop conduct alleged to violate the Pennsylvania Unfair Trade Practices and Consumer Protection Law.

According to the Attorney General’s announcement, the company marketed low-priced or “free” introductory items but automatically enrolled customers into an ongoing subscription plan unless they canceled. The AG stated that the company did not clearly disclose that accepting the introductory offer triggered participation in a subscription plan, and some consumers received invoices or collection notices.

As part of the settlement:

• $707,986.17 will be distributed as restitution to consumers, and

• $42,013.83 will reimburse investigative costs, totaling $750,000.

The decree also directs American Mint to stop collection activity on nearly 200,000 consumer accounts associated with the subscription program.

The settlement incorporates the Federal Trade Commission’s definition of a “negative option feature,” meaning an offer where a customer’s silence is treated as consent.

American Mint agreed to the settlement while not admitting wrongdoing.

INSIDER TAKE

This case is not an outlier. It reflects an ongoing trend of state-level enforcement of subscription and automatic renewal compliance, independent of the FTC.

What subscription leaders should take away:

1. Negative option is the legal umbrella.
Automatic renewal and continuity programs are forms of negative option, because they continue unless a consumer cancels. Regulators are focused on whether customers affirmatively opt in.

2. States are acting — not just the FTC.
Pennsylvania joins California, New York, Colorado, and others actively enforcing:

• Clear and conspicuous disclosure of recurring terms

• Verified affirmative consent before enrollment

• Simple, accessible cancellation methods

3. Risk increases with “starter kits,” trials, and physical goods.
Models like “free introductory product → future shipments unless canceled” are receiving direct scrutiny. Companies using physical goods or sample shipments should assess their flows.

The bottom line?
Subscription revenue built on inertia carries legal risk. Enrollment and cancellation are now compliance issues, not UX decisions.