California Law Forces Companies to Let Customers Cancel Online

A new California law forces companies to let their customers cancel 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,” reported CNET. “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.”

CNET also noted that the law, which started on July 1, “means you won’t have to make any more phone calls to obscure customer service hotlines to cancel services like news subscriptions, music streaming or meal plans, for example.”

According to the California Senate bill, which was published in September 2017, the law also requires “a business that makes an automatic renewal offer or continuous service offer that includes a free gift or trial, to include in the offer a clear and conspicuous explanation of the price that will be charged after the trial ends or the manner in which the subscription or purchasing agreement pricing will change upon conclusion of the trial.”

“The bill would prohibit a business from charging a consumer’s credit or debit card, or the consumer’s account with a 3rd party, for an automatic renewal or continuous service that is made at a promotional or discounted price for a limited period of time without first obtaining the consumer’s consent to the agreement,” they continued. “The bill would also specify that if the automatic service offer or continuous service offer includes a free gift or trial, the business is required to disclose how to cancel, and allow the consumer to cancel, the automatic renewal or continuous service before the consumer pays for the goods or services.”