September 25th, 2024

New California law requires one-click subscription cancellations

California's Assembly Bill 2863 mandates one-click cancellation for automatic subscription renewals, effective January 1, 2025, simplifying the process for consumers and enhancing protection against complicated cancellation methods.

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New California law requires one-click subscription cancellations

A new California law, Assembly Bill 2863, mandates that companies offering automatic subscription renewals must provide a one-click cancellation option for consumers. This legislation aims to simplify the cancellation process for recurring subscriptions, such as streaming services and gym memberships, which often involve cumbersome procedures. Previously, California had stringent laws requiring online cancellation options, but companies could still complicate the process with multiple links or pages. The new law, effective January 1, 2025, will ensure that if a subscription can be purchased with a one-click method, cancellation must also be equally straightforward. The bill's co-author, Assembly Member Pilar Schiavo, emphasized that the law is designed to help Californians manage their finances better and protect them from unnecessary charges. Consumer advocacy groups have welcomed this change, arguing that it empowers consumers by making it as easy to cancel subscriptions as it is to sign up for them. The law will significantly impact digital service providers, including streaming platforms and fitness clubs, which have previously made cancellation difficult.

- California's new law requires one-click cancellation for automatic subscription renewals.

- The law aims to simplify the cancellation process for services like streaming and gym memberships.

- Effective January 1, 2025, it mandates that cancellation methods match the ease of subscription sign-ups.

- Consumer advocates support the law as a means to protect consumers from complicated cancellation processes.

- The legislation positions California as a leader in consumer protection regarding subscription services.

Link Icon 16 comments
By @JusticeJuice - 7 months
While I'm a bit dubious of how they'll define a 'one click' flow, this is a great move. Maybe auto-subscribing free trials can be banned next?

I live in France, and they do everything possible to make subscriptions hard to cancel - I signed up to my gym online, but if I want to cancel it I need to send their headquarters a physical letter in the post, and expect a 4-6 week processing time haha.

By @novia - 7 months
After moving to the Bay Area, I tried to do the old, "negotiate my bill with Comcast down by threatening to leave" trick, and instead it instantly cancelled my service. I was clicking around on the website trying to figure out how I could talk to the customer retention department when it happened.

I think some companies have already complied with this law ahead of time.

By @pintxo - 7 months
And all this where the needed regulation is so simple: „one can cancel any subscription the same way it was started“.

Started by clicking on a website? There must be an unsubscribe button.

Sold at my doorstep? Next time your sales people try to sell me something, I can cancel with them. But I could also just go to any office/branch/shop and tell whoever works there that I hereby unsubscribe.

You get the idea.

By @PoignardAzur - 7 months
This obsession with regulating everything is why California will never have its own tech giants like Alibaba or ASML.

Californian voters should just accept that an unregulated market is the only way to get any innovation at all.

By @jhpacker - 7 months
There's nothing in the law that says one-click.

It says, "A prominently located direct link or button which may be located within either a customer account or profile, or within either device or user settings."

I think where the interpretation that one-click sub == one-click unsub is from this passage:

"The ability to cancel or terminate an automatic renewal or continuous service pursuant to subdivision (c) or (d) shall be available to the consumer in the same medium that the consumer used in the transaction that resulted in the activation of the automatic renewal or continuous service, or the same medium in which the consumer is accustomed to interacting with the business, including, but not limited to, in person, by telephone, by mail, or by email."

The idea being that one-click is a medium, which doesn't seem to be the intent here.

By @the_mitsuhiko - 7 months
Austria requires consumer subscriptions to allow to be cancelled by email and the result has been a free website[1] that maintains a list of all the places you got to email to, lets you sign a cancellation letter with your government electronic id. I cancelled probably pretty much everything this way over the last 10 years and it has been great.

[1]: https://www.online-kuendigen.at/

By @verst - 7 months
I'd be happy if Washington state even just had something matching the current CA Automatic Renewal Law (ARL) as amended in 2018 (e.g. online subscribers should be able to cancel online). Unfortunately we don't have this in Washington State. I can sign up for a recurring Seattle Times subscription online but cannot cancel or modify it online for example.
By @andy_ppp - 7 months
They should do automatic un-enrolment if you aren't using services too...
By @yard2010 - 7 months
Can they also make it illegal to use evil methods such as making the CTA label "cancel" and mean "cancel the process, not your subscription"
By @valdrinNereth - 7 months
This is off-topic but, I really don't get why some of those websites are blocked for some countries. For example I'm trying to reach from Türkiye but it seems they blocked the access through here.
By @Stem0037 - 7 months
I wonder how this will affect companies' retention strategies. They might need to focus more on providing actual value rather than relying on cancellation friction.
By @gwbas1c - 7 months
Personally, I think this is the "wrong" fix.

We should be targeting this law at the credit cards, not the companies: The credit cards should list all subscriptions in a single place on your credit card bill, and the credit cards should handle unsubscribe in a common, and consistent way.

By @lencastre - 7 months
Try to cancel a Vodafone cable internet contarct in Germany.

From the geography that gave you GDPR when will we have mandatory one-click unsubscribe, with clear cut explanations of will happen, additional costs if existing, and when the contract ends.

By @hcfman - 7 months
Receive an E-mail, click on this link. What could possibly go wrong? Us common folk will never be smart enough to comprehend the wisdom of our leaders.
By @bugtodiffer - 7 months
Why do we need to regulate all this, I thought the market will do what customers want?