We have seen an increase in lawsuits alleging automatic renewal law (“ARL”)
violations in the State of California. Because our readers may not
be familiar with the ARL and the lawsuits that have followed, we
discuss below: (1) the ARL in greater detail; (2) recent ARL lawsuits for alleged violations of
the statute; and (3) how to comply with the ARL.
Let's Discuss the ARL and Ensuing Lawsuits
The intent of the ARL, as stated by the California State
Legislature, is “to end the practice of ongoing charging of
consumer credit or debit cards or third party payment accounts
without the consumers' explicit consent for ongoing shipments
of a product or ongoing deliveries of service.” Codified within California's
Business and Professions Code (“BPC”), the ARL requires
companies that offer “continuous services” or “free-to-pay conversions,” as those terms
are defined under the ARL, to clearly and conspicuously provide
consumers with certain disclosures, including, among
