"California's new auto-renewal law (AB 2863) establishes stronger consumer protections for automatic charges tied to subscriptions and free trials changing to paid plans."
"Businesses must clearly communicate the trial duration, post-signup terms, renewal schedule, and cancellation instructions before consumers input payment information."
"Consumers must actively consent to auto-renewal terms, and companies are required to confirm these terms post-signup to ensure transparency."
"Long-term subscription companies must provide an annual reminder about active subscriptions and inform consumers about cancellation methods, further protecting consumer rights."
California's auto-renewal law (AB 2863) enhances consumer protections against automatic charges from subscriptions and free trials. Businesses must clearly outline trial durations, post-signup fees, and billing frequency before collecting payment information. Active consent from consumers is mandatory before any auto-renewal charges. Companies must provide a confirmation of terms, including cancellation instructions, after signup. Cancellation must be straightforward, utilizing the same method as sign-up. Additionally, long-term subscription companies must remind consumers annually of active subscriptions and notify them in advance (at least seven days) of any price increases.
Read at www.mercurynews.com
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