CALIFORNIA’S NEW AUTO-RENEWAL LAW – What Consumers Need to Know to Stay Protected
California is once again stepping up its consumer protection game. Starting July 1, 2025, new rules around automatic subscription renewals will give consumers even more rights when dealing with companies that use these recurring payment models. Whether it’s for a streaming service, gym membership, or even a “free trial” that converts to a paid service, this new law will help make sure you aren’t being trapped into charges without your knowledge or consent. Here’s what you need to know to stay protected.
New California Law Provides Stronger Consumer Protection Against Sneaky Free Trials
Ever signed up for a “free trial” and forgotten to cancel before the charges started hitting your account? You’re not alone. Under California’s new law, companies offering these free-to-paid services must follow the same strict guidelines as regular paid subscriptions. This means they have to clearly inform you about when the free trial ends and make it easy for you to cancel before you’re charged.
More Transparent Disclosures
The new law cracks down on companies that bury important details in fine print. From now on, businesses must make sure you clearly understand key information like:
• That your subscription will continue until you cancel.
• How you can cancel and what the cancellation policy is.
• How often and how much you will be charged.
• Any minimum purchase requirements.
By law, companies must get your clear, affirmative consent to these terms—meaning they can’t sneak in auto-renewal conditions without you knowing. And if they mislead you about the terms or the service itself, they can be held accountable.
Easier Cancellations – “Click to Cancel” Is Here!!!
We’ve all been there—trying to cancel a subscription and getting the runaround with endless clicks or waiting on hold forever. California’s new law is putting an end to that nonsense. The law requires businesses to make cancellations just as easy as signing up. That means if you signed up online, you should be able to cancel online, too. And no more having to scroll through endless offers to find the cancellation button. It must be clearly visible, and companies must process your request promptly.
For services that require cancellation by phone, businesses must answer calls quickly and make sure you’re not delayed or obstructed in any way. If you leave a voicemail, they’re required to respond within one business day.
What If Fees Go Up?
Another big win for consumers is the requirement that companies notify you of any upcoming price increases before they take effect. This notice must be clear, easy to understand, and give you the chance to cancel if you don’t agree to the new charges. This rule applies to both regular automatic renewals and free trials turning into paid services.
What Should Consumers Do?
This new law is a major step forward in protecting Californians from unfair billing practices, but it’s important to stay vigilant. Here are some tips to help you stay protected:
Review your subscriptions regularly: Make sure you know which services are renewing automatically, and take action before the renewal date if you don’t want to continue.
Read the fine print: When signing up for a subscription or free trial, pay close attention to the cancellation terms and any minimum commitment requirements.
Cancel early: Don’t wait until the last minute to cancel a service if you’re no longer using it. Companies are required to make it easy, so don’t hesitate to act.
Watch for price change notices: If a company plans to increase your fees, they have to tell you in advance. Use this opportunity to cancel if the new price doesn’t work for you.
Our California Consumer Protection Attorneys Can Help!
R23 Law's California Consumer Protection Lawyers are committed to standing up for consumers facing unfair practices. We specialize in protecting your rights under California law and holding companies accountable for violations.
REACH OUT TODAY for a free initial consultation with one of R23 Law's California Consumer Protection Lawyers!
