2018 Amendment to California's Auto-Renewal Law Adds New
Requirements For Promotional Offers and Cancellation
Mechanisms
Often cited as one of the most aggressive efforts to curb
automatically recurring charges to consumers, California's
Auto-Renewal Law (Cal. Bus. & Prof. Code § 17600 et
seq.) has become a popular tool for both plaintiff's
lawyers and government regulators. The California Auto-Renewal Law
("ARL") applies, with limited exceptions, to any
arrangement in which a paid subscription or purchase agreement is
automatically renewed until the consumer cancels.
The ARL sets forth five main requirements for
compliance–which apply not only to online subscriptions, but
also to those procured through hard copy and audio methods, such as
subscriptions obtained via mailers or telemarketing calls: