Following Automatic Renewal Laws (ARLs) with Yotpo Subscriptions

This information is not legal advice. While we do our best to provide useful information to use as a starting point, Yotpo Subscriptions advises all merchants to obtain professional legal advice to ensure that all subscriptions are in full compliance with all applicable laws.

Automatic Renewal Laws (ARLs) emphasizes clear communication of subscription terms, transparent billing practices, and easy cancellation processes.

This article outlines the key features of Yotpo Subscriptions that support ARL adherence, helping you maintain trust and transparency with your customers.

How it works

ARLs protects consumers by ensuring they know about and agree to subscription renewals. It requires businesses to clearly explain the terms, get customer consent before charging, and make cancellations easy. This helps customers stay informed and in control of their subscriptions.

While ARL regulations vary by location, the basic requirements include providing:

1. Accessible subscription and renewal information
2. Clear cancellation policies and options
3. Timely notifications about upcoming renewals

Subscription information

One key requirement of ARLs is providing easy-to-find information about subscriptions and renewals.

Customers can see information about a subscription offering in the Product Page.

To provide additional information about a subscription:

1. In your Yotpo Subscriptions main menu, go to Store View > Product Page Widget.
2. Select Layout & Text.
3. Scroll down to Show subscription policy and edit the messaging to fit your needs.

By default, the subscription policy is “You're subscribing to receive this item multiple times, on a recurring basis (according to the frequency you select) with a discount on every recurring order. You may cancel or change your subscription at any time.”

After purchasing a subscription, customers will see their upcoming orders in the Customer Portal. Each subscription will show relevant information, such as the cost, included products, and date. Customers will also be able to view their next shipment and charge date in the top left-hand corner:

Cancellation policies

Giving customers the ability to cancel, and to understand the consequences of doing so, builds trust and transparency.

By default, customers have the ability to cancel their subscriptions in the Customer Portal. This setting can be found in Yotpo Subscriptions under Store View > Customer Portal Widget > Available actions.

Important:

Make sure Cancel subscription is activated to comply with regulations.

The cancellation policy is linked with your Shopify settings and shown in Shopify checkout.

To learn more about customizing the cancellation flow, go to Setting up Your Cancellation Flow.

Renewal notifications

Notifying customers before their subscription renews is important to keep them informed and avoid surprises.

If the time between renewals is less than 12 months, we will send a renewal notification 5 days before the renewal date. If the time between renewals is 12 months or longer, we’ll also send a notification 30 days in advance.

Notifications settings can be customized in Settings > Notifications > Subscription renewal reminder.  We recommend sending both an email and an SMS notification.

While following the above recommendations can help you meet ARL requirements, it’s important to stay up to date to make sure you remain compliant and are providing customers with a transparent experience.