Navigating the Labyrinth: An Analysis of Consumer Rights in Subscription-Based Service Models

Dr Madhu Kumar K

Abstract: The subscription economy has experienced explosive growth, fundamentally altering consumer-business relationships across a multitude of sectors. Projections indicate the market will reach over $1.5 trillion by 2033, driven by consumer demand for convenience and business demand for predictable revenue (Grandview Research, n.d.). However, this paradigm shift has been accompanied by a significant erosion of consumer rights, facilitated by deceptive business practices such as "dark patterns," opaque terms, hidden fees, and intentionally difficult cancellation processes, collectively known as "subscription traps?. This paper investigates the critical legal and regulatory responses to these challenges. Through a comparative legal analysis, it examines the evolving frameworks in the United States, the European Union, the United Kingdom, and Canada. Key regulatory interventions include the U.S. Federal Trade Commission's "Click-to-Cancel" rule, California's influential Automatic Renewal Law (ARL), the EU's Consumer Rights Directive, and the UK's proposed Digital Markets, Competition and Consumers Bill. The analysis reveals a clear global trend toward strengthening consumer protections by mandating transparency, requiring express consent, and simplifying cancellation procedures. This paper concludes that these developments represent a crucial rebalancing of power in the digital marketplace, forcing businesses to move beyond mere compliance toward more ethical, consumer-centric models. The findings have profound implications for business strategy, regulatory enforcement, and the future of digital commerce.

Keywords: Subscription Economy, Consumer Rights, Automatic Renewal, Dark Patterns, Click-to-Cancel, Consumer Protection Law, Subscription Traps

How to Cite?: Dr Madhu Kumar K, "Navigating the Labyrinth: An Analysis of Consumer Rights in Subscription-Based Service Models", Volume 14 Issue 12, December 2025, International Journal of Science and Research (IJSR), Pages: 1247-1252, https://www.ijsr.net/getabstract.php?paperid=SR251212084745, DOI: https://dx.doi.org/10.21275/SR251212084745