Click to Cancel: California’s New Subscription Law You Need to Know
Starting July 1, 2025, California is flipping the script on frustrating subscription cancellations. Thanks to Assembly Bill 2863—aka the “Click-to-Cancel Law”—businesses will be legally required to make canceling a subscription as easy as signing up. If you clicked a button to subscribe, you’ll be able to click a button to cancel. No more endless phone calls or email chains.
What Is the Click-to-Cancel Law (AB 2863)?
AB 2863 is designed to protect consumers from deceptive or manipulative subscription practices. It mandates that companies offering recurring or auto-renewing services must:
Clearly disclose all terms before you subscribe
Offer simple, fast cancellation options
Send timely reminders about renewals and trial conversions
Notify you in advance of any price increases
Obtain your clear, affirmative consent before charging
What Subscriptions Are Covered?
This law applies to nearly all paid subscription services, including:
Streaming platforms (Netflix, HBO Max, etc.)
Internet and cell phone plans
Software subscriptions
Any other recurring service fees
If you’re paying for it on a regular basis, it’s likely covered.
What Must Businesses Tell You Upfront?
Before you hand over your billing info, companies must clearly and conspicuously disclose:
That the subscription will auto-renew unless canceled
The length and frequency of renewal terms
The recurring charges (including potential price changes)
How to cancel the subscription
No fine print. No hidden terms. Just transparency.
What Does “Affirmative Consent” Mean?
You must actively agree to the auto-renewal—separately from other contract terms. That means:
Clicking a checkbox like “I understand this subscription will automatically renew for $19.99/month”
No sneaky language buried in the terms and conditions
No manipulative design tricks to get your consent
How Can You Cancel?
If you signed up online, you must be able to cancel online—immediately and without obstacles. The cancellation process must be just as easy as signing up.
Cancellation options must also match the method you used to subscribe. So if you signed up by phone, you can cancel by phone. And if that means calling a toll-free number, it must be answered promptly during business hours, with voicemails returned within one business day.
Will You Get Renewal Reminders?
Yes—especially for annual subscriptions. Businesses must send a clear reminder that includes:
What you’re subscribed to
When and how it will renew
The amount you’ll be charged
How to cancel
And it must be sent via the same method you used to sign up—whether that’s email, text, or app notification.
What If the Price Goes Up?
If your subscription price changes, the company must notify you 7 to 30 days before the new rate kicks in. That notice must include clear instructions on how to cancel if you don’t accept the new terms.
What Happens If a Business Breaks the Rules?
If a company fails to comply—say, by hiding terms or making cancellation difficult—the automatic renewal offer is considered invalid. You may be entitled to a refund and can report violations to California consumer protection agencies, including the Department of Consumer Affairs.
Disclaimer: This content is intended for educational and informational purposes only. Real cases have been modified to protect confidentiality. This does not constitute legal advice for any specific situation.
AB 2863: Automatic renewal and continuous service offers. | Digital Democracy