Companies must let customers cancel subscriptions online, California law says (2024)

A California law that went into effect July 1 is aimed at making it easier for customers to cancel their subscriptions online.

The law states that customers who accept an automatic renewal or continuous service offer online must be able to cancel the service online. That could include a pre-written "termination email" provided by the company that can be sent by the consumer without the need for more information.

The law means you won't have to make anymore phone calls to obscure customer service hotlines to cancel services like news subscriptions, music streaming or meal plans, for example.

One person tweeted about trying to cancel a New York Times subscription on the phone and being put on hold for 15 minutes -- twice.

Had to call NYT to cancel digital sub. Spent 15 min on hold. First rep tried to retain per training, but when I told him I had meeting to get back to, just cancel it — he hung up on me.
So I had to call back later that day, hold for another 15 mins to *finally* get it done

— Cory Brown (@tcb) May 31, 2018

The law has implications far beyond California, as it applies to all companies and publishers with paying customers in the state.

The new law also states that companies have to present the terms of an automatic renewal or continuous service offer in a "clear and conspicuous manner." Businesses with service offers that include a free gift or trial have to clearly explain the price that'll be charged after the trial ends. They also have to disclose to customers how to cancel the service before they pay.

Companies must let customers cancel subscriptions online, California law says (2024)

FAQs

Companies must let customers cancel subscriptions online, California law says? ›

In addition, the ARL amendments provide for “immediate” cancellation online. Under the current ARL requirements, if a California consumer accepts an automatic renewal offer online, the business must allow the consumer to cancel the offer exclusively online.

What is the California law for subscriptions? ›

The California ARL specifically requires businesses to disclose all relevant subscription terms to customers, get consent from the customers before charging their credit cards, and provide customers with a way to easily cancel the contract.

What is the membership cancellation law in California? ›

Merchants must inform customers clearly how they can cancel their subscriptions. If they were on a free trial plan, you must allow them to cancel before the end of the trial and provide information on how they can do so. Another obligation under the law is regarding how consumers can cancel their subscriptions.

Is it illegal to not let someone cancel a subscription? ›

According to state law, when you sign up for a subscription that automatically reviews, the company must explain when it'll charge you and how much. It's also required to make it simple for you to cancel the subscription.

What is the law 17602 in California? ›

Section 17602 - Unlawful acts by business making automatic renewal or continuous service offer to consumer (a) It is unlawful for any business that makes an automatic renewal offer or continuous service offer to a consumer in this state to do any of the following: (1) Fail to present the automatic renewal offer terms ...

Does California law require online cancellation? ›

In addition, the ARL amendments provide for “immediate” cancellation online. Under the current ARL requirements, if a California consumer accepts an automatic renewal offer online, the business must allow the consumer to cancel the offer exclusively online.

What is the cancellation law in California 2024? ›

The new law allows consumers to cancel, without penalty, a hotel or short-term rental reservation within 24 hours after the reservation is confirmed. The reservation must be made at least 72 hours before check-in. SB 478: Prohibits those hidden fees that don't show up until you are about to finalize a purchase online.

What is the consumer right to cancel in California? ›

California's Home Solicitation Sales Act – allows the buyer in almost any consumer transaction involving $25 or more, which takes place in the buyer's home or away from the seller's place of business, to cancel the transaction within three business days after signing the contract.

What is Section 17600 of the California business and Professions Code? ›

17600. It is the intent of the Legislature to end the practice of ongoing charging of consumer credit or debit cards or third party payment accounts without the consumers' explicit consent for ongoing shipments of a product or ongoing deliveries of service.

What is the assembly bill 390 in California? ›

On October 4, 2021, California Gov. Gavin Newsom signed into law Assembly Bill 390, which adds new renewal reminder notice requirements and cancellation requirements to California's already-demanding Automatic Renewal Law (ARL).

Can you sue a company for not letting you cancel a subscription? ›

If a subscription information service makes it difficult or impossible for you to opt out, or if they are charging you more than what you agreed to (e.g. hidden fees), you may consider suing for: Violation (breach) of the billing or cancellation agreement.

What do I do if a company is not letting me cancel my subscription? ›

You should try negotiating with the business if: a cancellation charge seems unfair. the business is holding or demanding more money than needed to cover their financial loss. you paid everything up front (always inadvisable) and they're keeping more than necessary to cover their loss.

What to do if customer wants to cancel subscription? ›

Respond promptly: Send a timely confirmation to let the customer know their request has been received. Express understanding: Let the customer know you respect their decision to cancel. Use phrases like “We understand your decision” or “We respect your choice.”

What is the law 22507 in California? ›

Section 22507 - Local prohibition or restriction of stopping, parking, or standing of vehicles within 100 feet of intersection; preferential parking privileges (a) Local authorities may, by ordinance or resolution, prohibit or restrict the stopping, parking, or standing of vehicles, including, but not limited to, ...

What is the ARL law in California? ›

California's existing ARL requires businesses making an automatic renewal or continuous service offer to present the material terms of the offer to the consumer in a “clear and conspicuous manner.” This includes appearing in a larger or contrasting type, font or color, or set off from the surrounding text in a way that ...

Does Castle law apply in California? ›

Yes. Under Penal Code 198.5 PC, California law follows the Castle Doctrine. This is the legal principle that you have no duty to retreat if you confront an intruder at your own home. You are permitted to use force against intruders who break into your home or try to force their way in.

Do I have the right to cancel a dating subscription in California? ›

(a) In addition to any other right to revoke an offer, the buyer has the right to cancel a dating service contract or offer, until midnight of the third business day after the day on which the buyer signs an agreement or offer to purchase those services.

Are subscriptions legally binding? ›

Contractual Obligations: Subscriptions involve the creation of a legally binding contract between the provider and the subscriber. This contract outlines the rights and obligations of both parties, including payment terms, termination clauses, and any limitations on usage or access.

What is a subscription in law? ›

Subscribe in a legal context means the action of: Writing one's name on a document in acknowledgment of being its creator. For example, subscribe a letter. Signing a document to give one's consent to the terms established therein. For example, subscribe a contract.

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