Changes to Paddle Checkout for recurring subscriptions
Customers in the US are presented with a new checkbox at checkout to confirm subsequent charges for recurring subscriptions, so you remain compliant with the FTC Negative Option Rule out-of-the-box.
What's new?
To comply with new amendments to the FTC Negative Option Rule and California’s Automatic Renewal Law (CARL), we've made some changes to Paddle Checkout where customers in the US must give explicit consent when purchasing recurring subscriptions.
These changes apply to all types of checkout through Paddle like overlay and inline, and all variants like one-page and multi-step.
How it works
Prices in Paddle can be recurring. When a customer purchases an item with a recurring price, a subscription is created and a transaction is automatically billed at set intervals using the payment method on file.
Customers can purchase subscriptions through Paddle Checkout.
With recent changes to legislation, a US-based customer must now explicitly give consent to the recurring terms of a subscription before they're charged. As a result, all checkouts include a new checkbox that customers must tick to confirm they agree to subsequent charges when the subscription auto-renews.
The checkbox only shows for US-based customers, and only for purchases of auto-renewing recurring subscriptions, including free trials. It won't show for any $0 subscription checkouts where overages are concerned, or where subscriptions aren't created, like for one-off purchases.
The change is automatically enabled without any additional implementation needed, so you:
- Remain compliant and adhere to industry-leading consumer protection standards.
- Minimize the likelihood of chargebacks and refunds.
- Increase LTV and customer satisfaction with clear, upfront billing practices.
What's changed?
The latest change shows the checkbox before payment is taken, providing details on:
- How much a customer is charged on the date of purchase
- How much a customer is charged on subsequent purchases
- At what interval they're charged
- Where they can cancel their subscription
Next steps
This change is available for customers in California from July 1, 2025. It rolls out to all customers in the US on July 14, 2025. It's automatically enabled and presented to customers when required so you always remain compliant.
It's a non-breaking change, meaning it doesn't impact existing integrations. However, the changes may impact the height of the inline checkout frame. We recommend testing your current implementation to ensure it looks correct when displayed.
See more about overlay and inline checkouts to understand how they look and how they can be styled.