As long as you reside in California, you won’t need to go through any extra steps or obstacles to cancel any of your memberships.
Subscription tracking can be expensive and time-consuming. According to a CNET survey, US adults spend $91 on average each month on subscription services, and almost half of them have signed up for a free trial of a paid membership and then forgotten to cancel it.
Assembly Bill 286 (signed into law this week by Governor Gavin Newsom) facilitates customers’ cancellation of paid subscription services.
The so-called “click to cancel” bill amends current regulations that govern how Californian businesses handle subscription cancellations, automatic renewals, and ongoing service offers.
Businesses need to give customers of online subscriptions a simple and straightforward way to cancel online.
Assemblymember Pilar Schiavo, who filed the measure, stated, “AB 2863 is the most comprehensive ‘Click to Cancel’ legislation in the nation, ensuring Californians can cancel unwanted automatic subscription renewals just as easily as they signed up — with just a click or two.”
These modifications make automatic renewals more user-friendly by improving transparency, simplifying canceling procedures, and providing customers with more information about terms and prices.
They also shield customers from unanticipated costs. Here are the details of the recently passed California bill.
What is the purpose of the California “click to cancel” bill?
The bill will take effect on July 1, 2025, and requires businesses to provide cancelation through the same manner that was utilized for enrollment. For instance, you must be able to cancel the subscription online if you signed up online.
If a toll-free number is provided for cancellation, it needs to be manned promptly during business hours and should be easy for you to use.
A company may give you a discount in an attempt to get you to stay, but it shouldn’t stop you from leaving. The bill also mandates that companies obtain your consent before continuing to provide services or automatically renew them.
If you don’t cancel in time, the company will charge you more and send you yearly reminders about the subscription service, including the amount and frequency of charges. They also can’t mislead you about the terms. Additionally, they have to demonstrate how to end your subscription.
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Before verifying billing information, the company must notify you of the charges and terms of renewal for any free trials or promotional offers.
Finally, the bill stipulates that the company must give you explicit notice of any changes to your membership cost at least seven days in advance of the change taking effect.
