Most of us know what it’s like to receive a notice that one of our subscriptions has been automatically renewed for another year. As the regulatory landscape of subscription-based offers continues to evolve, federal and state regulators and private plaintiffs have ramped up actions and challenges against companies that sell products and services on an automatically renewing basis. Last month, California Gov. Gavin Newsom signed new legislation to protect California consumers. Among them are long-anticipated updates to California’s Automatic Renewal Law (ARL) that impose new notice requirements on automatic renewal and continuous service offers with free or introductory trial periods and offers with an initial term of one year or longer, as well as stronger provisions allowing consumers to cancel services more easily and quickly. As companies quickly embrace the rise of digital technologies when offering entertainment and personal services, they should familiarize themselves with California’s ARL, as it applies to all businesses that make automatic renewal offers and continuous services offers to California consumers.
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Continue Reading Looking Ahead: Significant Changes in California Law for Subscription Merchants Coming in July 2022