California’s new online cancellation law benefits many disgruntled subscribers in other places, too | Industry News
A new California law that went into effect on July 1 will make it much easier for people to cancel subscriptions online. Since the bill, sponsored by State Sen. Bob Hertzberg (D-Van Nuys), includes all services that have paying customers in the state, it will also benefit dissatisfied customers in many places outside California.
The legislation, California Senate Bill No. 313, covers “any business that makes an automatic renewal or continuous service offer to a consumer in this state,” so that includes a very wide range of services, including newspapers and magazines, subscription boxes, streaming services and more. Not only that, but if you made the subscription online, the law stipulates that you are also allowed to cancel it online. In other words, you can no longer be forced to call a customer service phone number to stop the service, a task that is usually much more frustrating and time-consuming than signing up in the first place.
The bill also requires more transparency in how companies present promotional offers. For example, if they lure in users with a free trial or gift, then they also need to include a “clear and conspicuous explanation” in the offer of how much customers will be charged after the trial ends or if the pricing will change. It also needs to tell you how to cancel (and actually allow you to do so) before you are charged.
If you sign up for a subscription at a promotional or discounted price that is only valid for a certain amount of time, the company must get your consent again before charging your debit or credit card when the price returns to its normal rate.
According to Nieman Lab, many news organizations in California are already making changes to their systems to comply with the new law.