California Attorney General Rob Bonta has issued a consumer alert to remind both consumers and businesses about the rights provided under California’s Automatic Renewal Law, which was amended in 2024 and will take effect on July 1, 2025. The law aims to give consumers more control over subscription-based services and make it easier to manage or cancel subscriptions.
“That mysterious $7.99 appearing on your credit card bill every month just got easier to identify — and cancel. Under California’s Automatic Renewal Law, businesses must get explicit consent before charging consumers and must give consumers a clear and straightforward method for cancelling unwanted subscriptions,” said Attorney General Bonta. “With the increasing number of online businesses offering subscriptions, it is important to ensure that businesses are acting transparently and that consumers have the power to manage and cancel these subscriptions more easily.”
The law covers any service, subscription, or plan that continues until canceled by the consumer or automatically renews. It also applies when a free trial or discounted period converts into a paid subscription unless canceled before the end of the trial.
Businesses are required to obtain express affirmative consent from consumers for auto-renewal terms. For plans with an initial term of one year or longer that automatically renew, companies must notify customers at least 15 days but no more than 45 days before renewal. This notice must include information about renewal terms, charges, frequency of charges, and cancellation procedures.
For free or discounted trials lasting more than 31 days as part of an auto-renewal offer, businesses must provide notice between three and 21 days before the trial ends. Any changes in fees for existing auto-renewal plans require at least seven days’ notice but not more than 30 days prior to the change taking effect.
Additionally, companies must send annual reminders about ongoing plans using the same communication method as enrollment or regular interaction with the customer. The reminder should specify product details, charge frequency and amount, as well as cancellation instructions.
Cancellation methods must be accessible: if a consumer enrolled online, they must be able to cancel online without unnecessary steps or delays. Businesses are also required to offer easy-to-use options such as toll-free phone numbers or email addresses for cancellations.
The enforcement of this law falls under the jurisdiction of the Attorney General’s Office along with District and City attorneys throughout California. The law supplements other state protections against unfair business practices—including those involving dark patterns designed to interfere with consumer choice.
Consumers who believe their rights have been violated can file complaints through oag.ca.gov/report.
