You'll no longer have to jump through hoops and over hurdles to cancel any of your subscriptions -- as long as you're living in California.
Keeping track of subscriptions can be frustrating and costly. US adults spend an average of $91 on subscription services each month, a CNET survey found, and nearly half have signed up for a free trial of a paid subscription and then forgotten to cancel it.
Gov. Gavin Newsom this week signed into law Assembly Bill 286, which makes it easier for consumers to cancel their paid subscription services. The "click to cancel" bill, as it's known, updates existing laws that determine how businesses in California handle cancellations, automatic renewals and continuous service offers for subscriptions.
For online subscriptions, businesses must provide an easy and direct way to cancel online.
"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," said Assembleymember Pilar Schiavo, who introduced the bill.
These changes not only give consumers a clearer understanding of what they're signing up for but also protect them against unexpected fees, making automatic renewals more friendly -- with better transparency, easier cancellation options and clearer communication about fees and terms. Here's what to know about the new California law.
For more, here's how to cancel subscriptions on our iPhone or Android phone.
What does the 'click to cancel' bill in California do?
According to the bill, which goes into effect July 1, 2025, businesses must offer cancellation through the same method you used to sign up. For example, if you signed up online, you also need to be able to cancel the service online. If there is a toll-free number for cancellation, it must be answered quickly during business hours and not be difficult for you to cancel.
A business is allowed to offer a discount to persuade you to stay, but it shouldn't prevent you from canceling.
The bill also requires businesses to get your consent for automatic renewals and continuous services. The business can't mislead you about terms and must send annual reminders about the subscription service, including how much you'll be charged and how often -- unless you cancel in time. They must also show you how you can cancel your subscription.
For free trials or promotional offers, the business must inform you of the charges and renewal terms before confirming billing info.
And lastly, the bill states that if there's a fee change to your subscription, the business must clearly notify you at least seven days before the change takes effect.