Troutman Pepper Locke attorneys assess the evolution of California’s auto-renewal law and the impact of these amendments on businesses and consumers.
California’s Auto Renewal Law is one of the most comprehensive laws applying to businesses offering automatic renewal or continuous service subscriptions in the country. Notable changes over the past few years—including new measures going into effect in July—mean businesses need to stay alert to comply if they sell any consumer goods or services to consumers through subscription programs that automatically renew.
In July 2018, the law was amended to require online cancellation methods for consumers. Around the same time the law was amended, district attorneys across the state formed the California Automatic Renewal Task Force. According to participants in the Task Force, CART was formed to coordinate efforts to address the surge in consumer complaints around autopay and automatic subscription renewals.