The agreement authorizes OpenAI to charge subscription fees on a recurring basis automatically, and subscriptions renew unless the user cancels before the renewal date.
This analysis describes what OpenAI's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision establishes automatic recurring billing for subscription plans, with cancellation required before the renewal date to avoid the next charge. The agreement does not specify a minimum cancellation notice period in the excerpt reviewed.
This addition establishes automatic renewal terms that bind users to ongoing charges absent affirmative cancellation, creating a significant financial obligation.
View full change record →Under this clause, users who purchase a subscription authorize ongoing recurring charges to their payment method until they actively cancel. Failure to cancel before the renewal date results in a charge for the next billing period as stated in the terms.
How other platforms handle this
Your subscription will automatically renew at the end of each subscription period unless you cancel your subscription before the renewal date. You authorize Skillshare to charge your payment method on a recurring basis for the subscription fee.
Unless otherwise provided in an Order Form, all subscriptions automatically renew for additional periods equal to the expiring subscription term or one year (whichever is shorter), unless either party gives the other notice of non-renewal at least thirty (30) days before the end of the relevant subs...
Apple Pay Cash is a service that allows you to send and receive money using Apple Pay. Apple Pay Cash accounts are issued by Green Dot Bank, Member FDIC. Funds held in Apple Pay Cash are stored value and are not insured by the FDIC except as provided in the Green Dot Bank terms and conditions.
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"If you purchase a subscription, you authorize OpenAI to charge the applicable fees to your payment method on a recurring basis until you cancel. Subscriptions automatically renew unless cancelled before the renewal date.— Excerpt from OpenAI's OpenAI Business Terms
(1) REGULATORY LANDSCAPE: Auto-renewal clauses are regulated in California under the Automatic Renewal Law (ARL), which requires clear disclosure of auto-renewal terms, affirmative consent, and a simple cancellation mechanism. The FTC's Negative Option Rule imposes analogous federal requirements for subscription services. Several other US states have enacted similar auto-renewal disclosure laws. Relevant enforcement authorities include the FTC, the California Attorney General, and state attorneys general. (2) GOVERNANCE EXPOSURE: Medium. Auto-renewal compliance is an active enforcement area for the FTC and state attorneys general. The agreement's disclosure of the auto-renewal mechanism satisfies a baseline requirement, but the adequacy of the cancellation mechanism and the clarity of disclosures at point of purchase are separate compliance considerations. (3) JURISDICTION FLAGS: California's ARL imposes the most specific requirements for auto-renewal disclosures and cancellation mechanisms. The FTC's Negative Option Rule applies nationally. EU/EEA and UK consumer protection law may impose additional requirements on subscription renewal terms. (4) CONTRACT AND VENDOR IMPLICATIONS: Operators reselling OpenAI subscriptions or building subscription products on OpenAI infrastructure should ensure their own auto-renewal disclosures comply with applicable state and federal law. (5) COMPLIANCE CONSIDERATIONS: Legal teams should verify that auto-renewal terms are presented with adequate conspicuity at the point of purchase, that the cancellation mechanism is readily accessible, and that renewal reminders are sent where required by applicable law.
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This provision establishes automatic recurring billing for subscription plans, with cancellation required before the renewal date to avoid the next charge. The agreement does not specify a minimum cancellation notice period in the excerpt reviewed.
Under this clause, users who purchase a subscription authorize ongoing recurring charges to their payment method until they actively cancel. Failure to cancel before the renewal date results in a charge for the next billing period as stated in the terms.
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