NBCUniversal and its subsidiary Peacock TV, LLC, have reached a $3.6 million settlement with Los Angeles County to resolve allegations that the streaming service violated California’s Automatic Renewal Law, the Unfair Competition Law, and the federal Restore Online Shoppers’ Confidence Act (ROSCA). The complaint alleged that Peacock automatically renewed subscriptions without clearly presenting renewal terms and failed to offer an easy way to cancel.

The case, brought by Los Angeles County Counsel on behalf of the People of California, was settled without an admission of wrongdoing by NBCUniversal.

Under the agreement:

• $2 million will be paid in civil penalties,
• $1.5 million will go to the LA County Department of Consumer and Business Affairs for consumer education and enforcement,
• $100,000 will cover investigative costs.

More significantly for subscription businesses, Peacock must now implement strict new compliance measures, including:

• Presenting automatic subscription renewal terms clearly and conspicuously,
• Obtaining the consumer’s affirmative consent to the subscription agreement,
• Providing an acknowledgment that includes the automatic renewal terms and a clear description of the cancellation policy, and
• Offering an easy, immediate method of cancellation that does not obstruct or delay the end of service.

Rafael Carbajal, Director of the County’s Department of Consumer and Business Affairs, said in a statement:

“This outcome is a significant win for the public and a reminder that no business, regardless of size or influence, is above consumer protection laws.”

As of 2024, Peacock had more than 2.5 million paid subscribers in California, representing a significant exposure to state-level compliance risks. Nationwide, the platform reported over 41 million subscribers in Q1 2025.

A judge is expected to approve the final terms of the settlement in the coming weeks.

INSIDER TAKE

This case is a sharp reminder that compliance with automatic renewal laws is no longer optional—especially for subscription businesses operating in California or other aggressive regulatory environments. The scope of the requirements imposed on Peacock mirrors the growing expectations from state attorneys general, federal agencies, and class action plaintiffs.

Subscription leaders should closely examine their onboarding and cancellation workflows to ensure they meet the standards now being enforced. That means:

• Clear, front-and-center renewal terms,
• Affirmative consent (no pre-checked boxes), and
• Instant cancellation, ideally through self-service with no barriers.

Beyond legal risk, friction-filled cancellation processes are increasingly viewed as brand liabilities. Businesses that continue to rely on obscure terms or burdensome offboarding risk more than fines—they risk consumer trust.

This settlement also suggests more enforcement may be coming, especially in states like California, where subscriber volumes and statutory damages can quickly scale. Proactive audits and legal reviews are strongly advised.