Colorado’s automatic renewal law, codified at C.R.S. 6-1-732, requires any business selling subscriptions or continuous-service agreements to Colorado consumers to disclose renewal terms up front in a clear and conspicuous way, send reminder notices before each renewal, offer a simple cancellation process, and cap automatic renewal terms at one year unless the consumer gives express written consent to a longer term. Civil penalties run up to $20,000 per affected consumer, and each consumer counts as a separate violation.1Justia. Colorado Code 6-1-732 – Automatic Renewal Contracts – Unlawful Acts – Required Disclosures – Right to Cancel – Trial Period Offers – Exemptions – Definitions
What You Must Disclose Before Signup
Before a consumer enters an automatic renewal contract, the business must present all renewal offer terms in a form the statute calls “clear and conspicuous.” Five pieces of information are mandatory: that the contract will automatically renew after the initial period, a description of the cancellation policy, any recurring charges that will hit the consumer’s card or payment account, the length of each renewal term, and any minimum purchase obligation.1Justia. Colorado Code 6-1-732 – Automatic Renewal Contracts – Unlawful Acts – Required Disclosures – Right to Cancel – Trial Period Offers – Exemptions – Definitions
“Clear and conspicuous” has a statutory definition. Written disclosures must appear in at least one of these formats: larger type than the surrounding text; a contrasting font, type style, or color at the same size; or set off by symbols or other marks that draw the reader’s eye. For offers made by phone, the terms must be spoken at a volume and pace that are easy to hear and understand, and delivered close in time to when the business asks for consent.1Justia. Colorado Code 6-1-732 – Automatic Renewal Contracts – Unlawful Acts – Required Disclosures – Right to Cancel – Trial Period Offers – Exemptions – Definitions
If you use an online link to send consumers to detailed renewal terms rather than displaying them on the purchase page itself, the link has to meet three conditions. It must be available before the consumer clicks “buy,” it must appear right next to the purchase button, and it must be labeled with (or sit directly beside) a clear disclosure that purchasing the product means enrolling in an automatic renewal contract.1Justia. Colorado Code 6-1-732 – Automatic Renewal Contracts – Unlawful Acts – Required Disclosures – Right to Cancel – Trial Period Offers – Exemptions – Definitions
Free Trials That Convert to Paid Subscriptions
Trial offers that roll into a paid subscription get an extra layer. When a business offers a trial period as an inducement to purchase, it must clearly disclose the price the consumer will be charged once the trial ends, and any further purchase obligations that kick in afterward. Those disclosures follow the same clear-and-conspicuous formatting rules.1Justia. Colorado Code 6-1-732 – Automatic Renewal Contracts – Unlawful Acts – Required Disclosures – Right to Cancel – Trial Period Offers – Exemptions – Definitions
The written acknowledgment sent after a trial-period purchase must explain how to cancel, and the business must let the consumer cancel before any payment is due.1Justia. Colorado Code 6-1-732 – Automatic Renewal Contracts – Unlawful Acts – Required Disclosures – Right to Cancel – Trial Period Offers – Exemptions – Definitions
The Written Acknowledgment After Purchase
After signup, the business must provide a written acknowledgment the consumer can save or print. The acknowledgment has to restate the automatic renewal offer terms, the cancellation policy, and the cancellation instructions. For trial-period offers, it must also explain how to cancel before the trial converts to a paid subscription.1Justia. Colorado Code 6-1-732 – Automatic Renewal Contracts – Unlawful Acts – Required Disclosures – Right to Cancel – Trial Period Offers – Exemptions – Definitions
The statute’s phrase is “capable of being retained by the consumer.” A confirmation email that includes the required content is the straightforward way to comply online. A pop-up that disappears would not.
Renewal Reminder Notices
Colorado requires a reminder notice before each automatic renewal, telling the consumer the contract will renew unless they cancel and explaining how to cancel. The notice must go out between 25 and 40 days before the renewal date.1Justia. Colorado Code 6-1-732 – Automatic Renewal Contracts – Unlawful Acts – Required Disclosures – Right to Cancel – Trial Period Offers – Exemptions – Definitions
For renewal terms shorter than 12 months (monthly or quarterly subscriptions, for example), the business does not need to send a notice before every single renewal. It must send at least one notice in the 25-to-40-day window before the first renewal that would push the contract past a continuous 12-month period, and at least one notice in that same window before each subsequent renewal. In practical terms, a monthly subscription needs a notice before month 12, and then before each renewal after that. The notice must clearly identify who is sending it and provide accurate cancellation instructions.1Justia. Colorado Code 6-1-732 – Automatic Renewal Contracts – Unlawful Acts – Required Disclosures – Right to Cancel – Trial Period Offers – Exemptions – Definitions
Cancellation Must Be Easy
Every business must offer a cancellation process that is simple, cost-effective, timely, easy to use, and readily accessible. The statute provides two safe harbors that automatically satisfy the requirement. The first is one-step online cancellation: a single cancellation link on the website, in an app, or in an email to the consumer, with a reasonable identity-verification step allowed but nothing beyond that. The second is in-person cancellation available at a physical location where the consumer regularly uses the service, such as a gym or studio.1Justia. Colorado Code 6-1-732 – Automatic Renewal Contracts – Unlawful Acts – Required Disclosures – Right to Cancel – Trial Period Offers – Exemptions – Definitions
A cancellation process that routes consumers through multi-step phone trees, requires written letters, or imposes waiting periods risks violating the statute even if cancellation is technically possible.1Justia. Colorado Code 6-1-732 – Automatic Renewal Contracts – Unlawful Acts – Required Disclosures – Right to Cancel – Trial Period Offers – Exemptions – Definitions
Automatic renewals cannot extend beyond one year unless the consumer gives express written consent to a longer term. A pre-checked box or a buried clause will not lock a customer into a two-year renewal.1Justia. Colorado Code 6-1-732 – Automatic Renewal Contracts – Unlawful Acts – Required Disclosures – Right to Cancel – Trial Period Offers – Exemptions – Definitions
Who the Law Doesn’t Cover
Several categories of businesses are exempt from C.R.S. 6-1-732: services provided under a franchise from a Colorado political subdivision or a license from the Public Utilities Commission; services regulated by the FCC, FERC, or the state Public Utilities Commission; any entity regulated by the Colorado Division of Insurance; state- or federally licensed banks, bank holding companies, credit unions, and other financial institutions, along with their subsidiaries and affiliates; and air carriers regulated under federal aviation law.1Justia. Colorado Code 6-1-732 – Automatic Renewal Contracts – Unlawful Acts – Required Disclosures – Right to Cancel – Trial Period Offers – Exemptions – Definitions
Penalties for Noncompliance
Enforcement authority sits with the Colorado Attorney General and district attorneys. Consumers cannot sue directly under C.R.S. 6-1-732 itself.1Justia. Colorado Code 6-1-732 – Automatic Renewal Contracts – Unlawful Acts – Required Disclosures – Right to Cancel – Trial Period Offers – Exemptions – Definitions
The civil penalty is up to $20,000 per violation, and each consumer or transaction counts as a separate violation. Violations against elderly consumers carry a higher penalty of up to $50,000 each. Violating a court order or injunction issued under the Consumer Protection Act adds a separate penalty of up to $10,000 per violation on top.2Justia. Colorado Code 6-1-112 – Civil Penalties
When Consumers Can Sue Anyway
The exclusive-enforcement language in C.R.S. 6-1-732 does not seal off private litigation. Under C.R.S. 6-1-113, any consumer injured by a deceptive trade practice listed in Article 1 of Title 6 can file a private lawsuit, and noncompliance with the automatic renewal law could qualify as a deceptive trade practice.3Justia. Colorado Code 6-1-113 – Civil Actions
Damages available in a private consumer action under C.R.S. 6-1-113 include:
- Actual damages, plus prejudgment interest at 8% per year or the statutory rate, whichever is higher.
- A minimum recovery of $500, even if actual damages are lower.
- Treble damages (three times actual damages) if the consumer proves bad faith (fraudulent, willful, knowing, or intentional conduct) by clear and convincing evidence.
- Attorney fees and costs for a successful plaintiff.
Class actions can recover actual damages, injunctive relief, and reasonable attorney fees and costs.3Justia. Colorado Code 6-1-113 – Civil Actions
Overlap With Federal Rules
Online subscription sellers also sit under two federal regimes. The Restore Online Shoppers’ Confidence Act (ROSCA) prohibits charging consumers through a negative option feature unless the business clearly discloses all material terms before collecting billing information and obtains the consumer’s express informed consent. ROSCA requires an additional affirmative action from the consumer, such as clicking a confirmation button or checking a box, specifically for post-transaction third-party sales.4Congress.gov. Public Law 111-345 – Restore Online Shoppers’ Confidence Act
The FTC’s Negative Option Rule, finalized in late 2024, requires that cancellation be at least as easy to use as signup. For online or phone enrollments, cancellation must work in the same medium and take no more time or effort than signing up did. For in-person or mail enrollments, the seller must also offer at least one remote cancellation method, such as a website, email, or toll-free number. Colorado’s cancellation requirements largely align with the federal rule, but the “at least as easy” standard can be more demanding in specific situations, so meeting the strictest applicable requirement is the safe path.5Federal Register. Negative Option Rule
Documenting Compliance
C.R.S. 6-1-732 does not spell out a recordkeeping requirement, but documentation is the only practical defense in an enforcement action. Keep records of how and when each consumer agreed to the renewal terms, copies of the written acknowledgments you sent, and logs of when renewal notices went out. If your cancellation mechanism is online, keep screenshots or archived versions of the flow. Without that paper trail, a business has little to show when the AG’s office asks for proof that each obligation was met.