Auto-Renewal Disclosure
Effective: May 3, 2026·Last updated: May 3, 2026
Authority: Texas Business & Commerce Code §601.001 et seq. (Automatic Renewal Provisions)
This document serves two purposes: (1) it is the internal compliance record documenting Hoshin Space's auto-renewal practices under Texas law; and (2) it contains the required disclosure language and implementation standards for the checkout and subscription flows.
PART 1 — Statutory Requirements Summary
1. What Texas §601 Requires
Texas Business & Commerce Code Chapter 601 ("Automatic Renewal Provisions") applies to any contract for products or services that automatically renews for a specified period unless the consumer cancels. Hoshin Space's monthly subscription qualifies.
The statute imposes four core obligations on the business offering the auto-renewing contract:
| Requirement | Detail | Status |
|---|---|---|
| Clear and conspicuous disclosure | Auto-renewal terms must be disclosed in a manner that is clear, conspicuous, and in close visual proximity to the subscription offer and payment button. | ✓ |
| Affirmative consent | Consumer must affirmatively consent to auto-renewal terms — pre-checked boxes do not satisfy this requirement. | ✓ |
| Cancellation mechanism | Must provide a simple, easy-to-use cancellation mechanism disclosed at the time of sale. | ✓ |
| Renewal reminder (where applicable) | For contracts with an initial term of one year or more, a renewal reminder must be sent 30–60 days before renewal. Monthly subscriptions: no pre-renewal notice required, but best practice. | ! |
Legend: ✓ = Required and addressed in this document | ! = Best practice / applies to annual plans if offered
2. Penalties for Non-Compliance
Failure to comply with Texas §601 can expose Hoshin Space to:
- Civil liability to consumers for actual damages, statutory damages of $500 per violation, court costs, and reasonable attorney's fees (Tex. Bus. & Com. Code §601.057).
- Injunctive relief requiring cessation of non-compliant practices.
- Regulatory action by the Texas Attorney General under the Texas Deceptive Trade Practices Act (DTPA), which may apply to auto-renewal violations as a deceptive trade practice.
- Potential Stripe policy violations if auto-renewal disclosures are absent at checkout — Stripe requires compliant billing disclosures as a condition of use.
The safest approach is to treat the disclosure requirements as a pre-condition to displaying the payment button — the disclosure must be visible and accepted before the subscription can be initiated.
PART 2 — Required Disclosure Language
3. Mandated Disclosure Text
The following disclosure text must appear at checkout, in close proximity to the payment button, before the customer submits payment. It must be clearly legible, in a font size no smaller than the surrounding body text, and not hidden in a scrollable terms box.
3.1 Starter Plan Disclosure ($29/mo standard)
The Starter Plan was previously labeled "Basic" in earlier disclosures. Plan IDs and Stripe price records under the legacy name continue to describe the same tier — Customers who agreed to the prior Basic disclosure are entitled to the Starter Plan’s current feature set at the price they originally agreed to until they actively elect a different plan.
AUTO-RENEWAL NOTICE
Subscription Plan: Hoshin Space Starter
Billing Amount: $29.00 per month + applicable taxes
Billing Frequency: Monthly, on the same date each month
Free Trial: 14 days free. You will not be charged during your trial.
First Charge: On the day your 14-day free trial ends
Cancel Anytime: Cancel before your trial ends and you will never be charged.
UNLESS YOU CANCEL BEFORE THE END OF YOUR FREE TRIAL, YOUR SUBSCRIPTION WILL
AUTOMATICALLY RENEW EACH MONTH AT $29.00 AND YOUR PAYMENT METHOD ON FILE
WILL BE CHARGED. YOUR SUBSCRIPTION CONTINUES UNTIL YOU CANCEL.
Cancel anytime: Account Settings → Billing → Cancel Subscription, or email
support@hoshinspace.com. Cancellation takes effect at end of current billing period.
No cancellation fees.
3.1A Starter Plan Disclosure — With Introductory Promotion ($10/mo for 3 months, then $29/mo)
When an introductory promotion is in effect at the time of checkout, the following disclosure replaces §3.1 verbatim. The promotion applies only to the Starter Plan, only to new subscribers, and only for the first three (3) billing cycles immediately following the free trial.
AUTO-RENEWAL NOTICE — INTRODUCTORY PRICING
Subscription Plan: Hoshin Space Starter (with introductory promotion)
Introductory Price: $10.00 per month for the first 3 monthly billing cycles
Standard Price: $29.00 per month + applicable taxes, beginning with the 4th billing cycle
Billing Frequency: Monthly, on the same date each month
Free Trial: 14 days free. You will not be charged during your trial.
First Charge: $10.00 on the day your 14-day free trial ends
Cancel Anytime: Cancel before your trial ends and you will never be charged.
UNLESS YOU CANCEL BEFORE THE END OF YOUR FREE TRIAL, YOUR SUBSCRIPTION WILL
AUTOMATICALLY BEGIN AT THE INTRODUCTORY RATE OF $10.00 PER MONTH FOR THREE (3)
MONTHS. AFTER THE THIRD MONTHLY CHARGE, YOUR SUBSCRIPTION WILL AUTOMATICALLY
RENEW EACH MONTH AT THE STANDARD RATE OF $29.00 AND YOUR PAYMENT METHOD ON
FILE WILL BE CHARGED. YOUR SUBSCRIPTION CONTINUES UNTIL YOU CANCEL.
The price increase from $10.00 to $29.00 occurs automatically with the 4th
billing cycle. No further action is required by you.
Cancel anytime: Account Settings → Billing → Cancel Subscription, or email
support@hoshinspace.com. Cancellation takes effect at end of current billing period.
No cancellation fees.
3.2 Pro Plan Disclosure ($59/mo)
AUTO-RENEWAL NOTICE
Subscription Plan: Hoshin Space Pro
Billing Amount: $59.00 per month + applicable taxes
Billing Frequency: Monthly, on the same date each month
Free Trial: 14 days free. You will not be charged during your trial.
First Charge: On the day your 14-day free trial ends
Cancel Anytime: Cancel before your trial ends and you will never be charged.
UNLESS YOU CANCEL BEFORE THE END OF YOUR FREE TRIAL, YOUR SUBSCRIPTION WILL
AUTOMATICALLY RENEW EACH MONTH AT $59.00 AND YOUR PAYMENT METHOD ON FILE
WILL BE CHARGED. YOUR SUBSCRIPTION CONTINUES UNTIL YOU CANCEL.
Cancel anytime: Account Settings → Billing → Cancel Subscription, or email
support@hoshinspace.com. Cancellation takes effect at end of current billing period.
No cancellation fees.
3.3 Post-Trial Upgrade Disclosure (Trial → Paid)
When a free trial user selects a plan at the end of trial, the following abbreviated disclosure must appear near the confirmation button:
BILLING NOTICE
By confirming, you authorize Hoshin Space to charge your payment method
$[AMOUNT]/month starting today. Your subscription renews automatically each month
until cancelled. Cancel anytime in Account Settings or by emailing
support@hoshinspace.com. No cancellation fees.
4. Consent Checkbox Requirement
A pre-checked checkbox does NOT satisfy the affirmative consent requirement under Texas §601 or Stripe's billing compliance standards. The following checkbox must be unchecked by default and must be checked by the user before the payment button activates:
□ I have read and agree to the Auto-Renewal Terms above. I understand that my
subscription will automatically renew monthly at the stated price until I cancel,
and that I can cancel at any time through Account Settings or by emailing
support@hoshinspace.com.
Implementation requirement: The payment / "Start Free Trial" button must be disabled until this checkbox is checked. This is enforced in the checkout component. See the companion CTA component in the Hoshin Space codebase.
PART 3 — Implementation & Placement Standards
5. Placement Requirements
5.1 Proximity Rule
Under §601.053, the disclosure must be "clear and conspicuous" and presented in a manner that the consumer is likely to see before completing the transaction. Hoshin Space implements this through:
- The full disclosure block (Section 3) displayed immediately above the payment button or "Start Free Trial" CTA, with no intervening content that would break visual continuity.
- Minimum font size of 14px for all disclosure text — no smaller than the body text of the surrounding page.
- The disclosure rendered in a visually distinct container (bordered amber/gold box) to draw the eye.
- No collapsible sections, accordions, or scroll-required containers that obscure the disclosure.
- The consent checkbox positioned between the disclosure block and the CTA button, serving as a visible gate.
5.2 Mobile Requirements
On mobile viewports (< 768px):
- The disclosure box must be fully visible without horizontal scrolling.
- Font size must not fall below 13px on mobile.
- The consent checkbox and CTA button must remain in the natural scroll flow — they must not be fixed to the viewport in a way that bypasses the disclosure.
5.3 Checkout Email Confirmation
Within 24 hours of a subscription being initiated (at trial start or at first charge), an automated email confirmation must be sent to the Service Provider containing:
- Confirmation that a subscription has been started.
- The plan name and monthly price.
- The date the first charge will occur (or confirmation of the charge already made).
- The renewal date and frequency.
- Clear instructions for how to cancel.
This email serves as the written confirmation of auto-renewal terms required by best practice under §601 and as a defense against chargeback claims of unauthorized recurring charges.
6. Cancellation Mechanism Disclosure
Texas §601 requires that the cancellation mechanism be disclosed at the time of sale. Hoshin Space's disclosure includes:
HOW TO CANCEL YOUR SUBSCRIPTION
Option 1 — Self-Service (Instant): Account Settings → Billing → Cancel Subscription
Option 2 — Email: support@hoshinspace.com | Subject: "Cancel Subscription"
Cancellation is effective at the end of your current billing period.
You will not be charged again after cancellation is confirmed.
No cancellation fees. No penalties. No questions required.
This cancellation block should appear in: (a) the checkout disclosure, (b) the subscription confirmation email, (c) the Account Settings / Billing page, and (d) the footer of every billing-related email.
7. Trial-to-Paid Transition Reminder Email
Although not strictly required for monthly plans under §601, Hoshin Space sends a reminder email 3 days before the 14-day free trial expires. This is best practice and significantly reduces chargebacks and disputes. The email must include:
- Clear subject line: e.g., "Your Hoshin Space trial ends in 3 days — here's what happens next"
- The plan name and first charge amount.
- The exact date the first charge will occur.
- A prominent "Cancel now" link (direct link to cancellation, not just instructions).
- Instructions for cancelling via Account Settings or email.
If the Customer has not added a payment method by the end of trial, access is suspended rather than a charge being attempted against an incomplete payment setup.
PART 4 — Record-Keeping and Audit Trail
8. Required Records
For each subscription initiated, Hoshin Space's system must capture and retain the following records for a minimum of 3 years following account termination or last transaction, whichever is later:
| Record | What to Capture |
|---|---|
| Disclosure version shown | The version of the auto-renewal disclosure shown to the user at checkout (e.g., v1.0 Starter, v1.0 Pro, or v1.1 Starter-Intro for the $10/mo promotional variant). Store with the subscription record. |
| Checkbox consent timestamp | UTC timestamp and IP address at which the user checked the consent checkbox. Stored server-side — do not rely on client-side only. |
| Plan and price at signup | The plan name and price the user agreed to at the time of subscription, even if pricing later changes. For Starter signups subject to the $10/mo introductory promotion, record both the introductory rate ($10/mo) and the standard rate ($29/mo) that takes effect at the 4th billing cycle, along with the disclosure variant shown (§3.1 standard or §3.1A introductory). |
| Trial start and end dates | ISO 8601 timestamps for trial start and trial end / first charge date. |
| Confirmation email delivery | Log that the subscription confirmation email was sent and, if available, delivered. Use email provider delivery receipts. |
| Cancellation record | If/when the user cancels: timestamp, method (self-service or email), effective cancellation date, and confirmation sent. |
| Reminder email delivery | Log that the 3-day trial expiry reminder was sent, with delivery confirmation. |
9. Annual Compliance Review
Hoshin Space conducts an annual review of this disclosure document and the checkout implementation to verify:
- Disclosure text accurately reflects current subscription pricing and trial terms.
- Checkout component enforces the consent checkbox gate before payment submission.
- Confirmation and reminder emails are actively sending and being delivered.
- Cancellation mechanism remains functional via both self-service and email paths.
- Disclosure version number and date are current in the audit log.
This review should be documented and dated. Any pricing changes (e.g., if Starter increases from $29 to $35, if the introductory promotion is added, removed, or modified, or if a new plan tier is introduced) must trigger an immediate update to the disclosure text and a new disclosure version number before the new price takes effect.
10. If You Receive a Chargeback or §601 Complaint
If a consumer files a chargeback or complaint citing failure to disclose auto-renewal terms, Hoshin Space should be prepared to produce:
- A screenshot or archived copy of the checkout page as it appeared to the consumer, showing the disclosure box in its required position.
- The consent checkbox log entry including timestamp and IP address.
- The subscription confirmation email with delivery confirmation.
- The trial reminder email with delivery confirmation.
- The version of this disclosure document in effect at the time of subscription.
Stripe's chargeback dispute process also requires evidence of disclosed billing terms. The records in Section 8 are the primary defense against "fraudulent" or "not as described" chargeback codes for subscription charges.
11. Interstate and Federal Considerations
While this document focuses on Texas §601, Service Providers using Hoshin Space operate in all U.S. states. California (BPC §17601), New York, and other states have their own auto-renewal laws. The disclosure language in Section 3 is drafted broadly enough to satisfy most state requirements. Consult counsel before offering annual plans, as longer-term renewal requirements are more stringent in several states.
Federal Consideration: The FTC's "Negative Option" rules (16 CFR Part 425 and the 2024 "Click-to-Cancel" rule) require that subscription cancellation be as easy as signup. Hoshin Space's self-service cancellation in Account Settings satisfies this requirement.
Hoshin Space (Saldana Tech LLC) | support@hoshinspace.com | hoshinspace.com/legal/autorenewal