Pro-rated refund policy disclosed; refund for unused portion

When a consumer cancels an annual subscription mid-year and receives no information about whether a prorated refund is owed, the business is exposed under EU Consumer Rights Directive 2011/83/EU Article 14 (right of withdrawal) and FTC Negative Option Rule (2025) requirements that material terms include refund rights. A 'no refund' policy is legally permissible in most jurisdictions, but only if clearly disclosed before purchase — not just in the Terms of Service. Annual subscriptions that silently absorb unused months generate disproportionate chargebacks because consumers assert their right to a refund through their bank when the product refuses.

Document the refund policy on the pricing page (not only in the Terms of Service) and implement a mechanism to process prorated refunds if the policy offers them. In app/api/subscription/cancel/route.ts:

if (requestRefund) {
  const totalDays = subscription.current_period_end - subscription.current_period_start
  const unusedDays = subscription.current_period_end - Math.floor(Date.now() / 1000)
  const refundRatio = unusedDays / totalDays
  const invoice = await stripe.invoices.retrieve(subscription.latest_invoice as string)
  const refundAmount = Math.round((invoice.amount_paid ?? 0) * refundRatio)
  await stripe.refunds.create({
    payment_intent: invoice.payment_intent as string,
    amount: refundAmount,
  })
}

Add a one-line disclosure to the pricing page beneath the annual plan: '30-day money-back guarantee' or 'No refunds — cancel to stop future charges.' The specific policy is less important than its presence before purchase.