Q&A on Mastercard's New Merchant Requirements

Update to Pending California Law on Automated Subscription Renewals

A pending California bill would amend the California Automatic Renewal Law on automated subscription renewal. The bill passed the full Assembly yesterday by a

A quick update on the pending California bill which would amend the California Automatic Renewal Law (Bus. & Prof. Code Sec. 17602) on automated subscription. The bill passed the full Assembly yesterday by a vote of 72-1 and is on its way to the CA Senate.

The text of the bill has to date remained unchanged.  

Although it is not law yet, please keep in mind that the bill if enacted would require:

  1. That consumers who enrolled online have the ability to cancel automated subscriptions online without any steps that would impact or restrict the consumer’s ability to cancel the automatic renewal immediately.
  1. That sellers send customers a notice 3-7 days prior to the first charge if the offer included a free or promotional period. The notice must contain instructions on how to cancel to avoid the renewal charge. If the notice is sent electronically, it has must contain a link to enable a consumer to cancel online
  1. That sellers provide an option to cancel that either is a direct link or button on the seller’s website, or a company formatted email where the consumer need not provide more information. That second choice alludes me but is still in this version of the law.

We will continue to monitor this bill and will keep you posted.

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