A new law in California, Assembly Bill (AB) 2863, will soon require companies to make subscription cancellations as easy as signups for consumers. Starting January 1, 2025, companies that allow users to sign up for subscriptions with one-click purchasing will also be obligated to provide a straightforward, one-click option to cancel those subscriptions.
California already had strict laws requiring an online cancellation option if the subscription could be started online. However, some companies exploited a loophole that allowed them to make cancellations difficult by requiring users to navigate through several web pages or steps. The new law aims to close this loophole, ensuring that canceling a subscription is as easy as subscribing.
The law is designed to help consumers save money by giving them more control over recurring charges, and it impacts a variety of services, including streaming subscriptions, fitness memberships, and digital newspapers. Companies like Roku, Amazon, and Apple already offer straightforward ways to cancel subscriptions through their devices, but the law will ensure that others follow suit.
Consumer advocacy groups like the Consumer Federation of California have praised the law, saying it promotes fair business practices and gives consumers better control over their finances. Assembly Member Pilar Schiavo, a co-author of the bill, emphasized that this measure would mean more savings for Californians by providing an easy way to avoid unnecessary charges.
This legislation is seen as a model for consumer protection, offering what Schiavo calls a “win” for both consumers and small businesses.
