The California Automatic Renewal Law governs any business offering subscriptions or continuous services to California consumers. Renewal terms must be presented clearly and conspicuously next to the consent mechanism, the business must get affirmative consent to the auto-renewal terms before charging, and a post-purchase acknowledgment must explain how to cancel. Customers who sign up online must be able to cancel online, and cancellation must be as easy as signup.
California Automatic Renewal Law After AB 2863
The AB 2863 amendments, applying to contracts entered into, amended, or extended on or after July 1, 2025, tightened the rules further. Renewal reminders are required before free trials convert and before annual renewals, consent records must be retained for at least three years, and retention offers cannot obstruct cancellation.
Penalties and Why It Matters
Violations make goods delivered under the contract an unconditional gift and expose the business to enforcement and civil penalties. Since the federal Click to Cancel rule was vacated, this is the most demanding subscription law in the country and the one national subscription sites build to.
Source: California Legislative Information: Cal. Bus. & Prof. Code 17600-17606, amended by AB 2863
Report a violation: If you believe a business is violating this law, you can file a complaint with the California Attorney General Consumer Protection.
