Mass Arbitrations & Unfair Subscription Practices
When a company uses unfair or deceptive practices to coerce or trick consumers into paying for a subscription, consumers may be able to take legal action through mass arbitration. In these cases, hundreds or even thousands of consumers who experienced the same billing or subscription issue take coordinated legal action against the same company by filing individual claims through shared legal counsel.
- May 14, 2026
- Common Deceptive Subscription Practices
- US Laws Protecting Consumers from Deceptive Subscription Practices
- How Mass Arbitration Levels the Playing Field
- Steps to Take If You’ve Been Wrongly Charged for a Subscription
- Frequently Asked Questions
- Taking Legal Action Against Companies With Deceptive Subscription Practices
Because companies must pay the administrative fees for arbitration, high costs can pressure them into quicker settlements.This process allows consumers to pursue compensation for unauthorized charges, misleading renewal terms, or deceptive billing practices without going through a lengthy court battle.
Common Deceptive Subscription Practices
Various illegal or unethical behaviors surrounding subscription practices can trigger mass arbitration filings. Companies may employ psychological tricks or “dark patterns” to prevent users from canceling or cause them to inadvertently sign up for auto-renewals.
The "Infinite Loop" Cancellation Process
In some cases, companies make consumers jump through hoops to cancel their subscriptions, such as requiring a phone call or a mail-in form to cancel a service they signed up for online.
Hidden Auto-Renewals and Lack of Notice
Companies are legally required to notify you before a trial ends or a yearly fee kicks in, but this does not always happen as it should.
Unauthorized Post-Cancellation Charges
Consumers may still be billed for subscriptions months after they successfully “canceled” their account, membership, or payments.
When Companies Take Advantage of Consumers, We Can Help
Class Action U’s accomplished partner attorneys at Milberg PLLC have successfully recovered more than $250 million for wronged consumers through alternative dispute resolution.
US Laws Protecting Consumers from Deceptive Subscription Practices
Numerous federal laws in the U.S. protect consumers from deceptive subscription practices, including unauthorized charges, hidden fees, and misleading renewal terms. The Consumer Financial Protection Bureau (CFPB) regulates financial products, including subscription services, to ensure consumers are not misled or taken advantage of by hidden or unfair fees. In some states, additional legal protections are put in place for consumers.
Some of the most prominent U.S. laws protecting consumers’ rights regarding billing and subscription practices include the following.
The Restore Online Shoppers' Confidence Act (ROSCA)
The Restore Online Shoppers’ Confidence Act, or ROSCA, prohibits sellers from charging any financial account in an online transaction unless they clearly disclosed all material terms of the transaction and obtained the consumer’s express informed consent. This includes subscription terms like automatic renewal procedures and other fees. Additionally, ROSCA provides consumers with an easy way to cancel subscriptions.
The Electronic Funds Transfer Act (EFTA)
The Electronic Fund Transfer Act (EFTA) of 1978 established the rights and responsibilities of consumers and financial institutions in electronic fund transfers. The EFTA protects consumers from unauthorized transfers, billing errors, and unauthorized access to accounts. This includes unauthorized withdrawals like subscription fees, and companies are required to provide consumers with the ability to dispute and stop unwanted charges.
The FCC’s Truth-In-Billing Policy
The Federal Communications Commission’s Truth-in-Billing policy requires telephone service providers to present charges clearly, accurately, and simply, enabling consumers to easily identify service providers, understand charges, and spot unauthorized subscription charges. This prevents telecommunications and digital service companies from hiding fees or adding unauthorized charges to bills.
How Mass Arbitration Levels the Playing Field
Many companies include terms in their user agreements that prevent consumers from joining traditional class action lawsuits. In response, consumers and law firms have increasingly turned to coordinated individual arbitration claims to hold companies accountable.
Instead of filing one large lawsuit, attorneys coordinate hundreds or thousands of individual claims against the same company at the same time. Because companies are often responsible for paying arbitration filing costs, large numbers of claims can create significant financial pressure to resolve disputes more quickly.
Your Role in a Mass Arbitration Filing
The first step in a mass arbitration action typically involves gathering information from people who were affected by the company’s conduct. You may need to provide receipts, bank statements, cancellation confirmation emails, and any other documentation that shows you were unfairly charged.
Steps to Take If You’ve Been Wrongly Charged for a Subscription
If you’ve been wrongly charged for a subscription that you do not remember agreeing to or attempted to cancel beforehand, take steps as soon as possible to secure your data and prepare for a potential claim. Take screenshots of billing or cancellation confirmations, save relevant emails, and record the dates of any interactions with customer support. Then, contact an experienced mass arbitration attorney to learn more about your options for initiating or joining an existing legal action.
Frequently Asked Questions
How Much Compensation Can I Expect from a Subscription Settlement?
Mass arbitration actions allow consumers to recover payments for small losses that might otherwise not have merited a full lawsuit. Many settlements result in the unfair charges being returned to the consumers. In one unfair subscription practices settlement involving Amazon, the company agreed to pay $2.5 billion ($51 per consumer) to resolve the allegations. Based on historical data, your settlement may be between $50-$500 depending on the case and your financial losses.
How Long Does Mass Arbitration Take for Subscription Disputes?
Mass arbitration cases typically take less time to resolve than typical lawsuits and class actions because the high financial risk pressures companies to settle more quickly. However, if thousands of claims are involved in a mass arbitration, it may take longer to settle each claim. In most cases, mass arbitration resolves within months to a few years.
Can I Still File a Claim if I Agreed to the Terms of Service?
Under federal law, courts can refuse to enforce all or part of a contract or its terms of service if they are excessively unfair and were formed under unequal bargaining power. “Unconscionable” terms of service can be challenged in court.
Does it Cost Me Money to Join a Mass Arbitration?
In a mass arbitration action, the cost of administering proceedings generally falls on the company responsible for the misconduct. Additionally, most mass arbitration lawyers work on a contingency fee basis, so they will only receive payment if they successfully resolve your claim. This means there are typically no upfront costs or fees to joining a mass arbitration.
Taking Legal Action Against Companies With Deceptive Subscription Practices
When companies remove consumers’ right to file lawsuits, mass arbitration becomes an effective way to quickly resolve subscription disputes. At Class Action U, we help consumers learn whether they may qualify to join coordinated legal claims involving unfair subscription practices. View our list of current mass arbitrations to see if you qualify for compensation.
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