New Law Might Pass in California Addressing Free Trials and Automatic Renewal

It is reported that a bill in the State of California, California SB 313, is deemed likely to pass. The law would require new

It is reported that a bill in the State of California, California SB 313 is deemed likely to pass. If it does, the law is expected to go into effect on July 1, 2018.

The law would require that any offer that includes a free gift or trial include a “clear and conspicuous explanation of the price that will be charged after the trial ends or the manner in which the subscriptionpricing will change upon conclusion of the trial.” The law will also require that any offer that is accepted online also be able to be canceled online, “including a termination email formatted and provided by the business that the consumer can send to the business without adding additional information.”

The bill, if passed, is scheduled to be signed into law by Gov. Brown in mid-September. I will keep you posted.

Filed in Auto-renew Subscription, Best Practice and How To, Gift Subscriptions, Invoiced Subscription, News, Payment Processing, Regulation and Compliance, Subscriber Only

Lisa B. Dubrow, Esq.

Lisa B. Dubrow is a lawyer specializing in advertising and consumer protection with an emphasis on subscriptions and recurring billing business models. She counsels clients on legal issues surrounding the advertising and marketing of goods and services. Her practice also encompasses the negotiation and drafting of contracts pertaining to product development, marketing, and sales, including those with vendors, agencies, fulfillment, distribution, talent, production and media. Ms. Dubrow is a Phi Beta Kappa graduate of SUNY Binghamton. She received her law degree from New York University School of Law. For more information, please visit: www.lisadubrow.com