AdLaw By Request

California’s proposed Automatic-Renewal Law (ARL) passed the state Legislature earlier this month, tightening the requirements on companies that sell subscription services with automatically renewing payments to consumers.

Authors: Jason W. Gordon

The new law comes on the heels of a flurry of class actions suits filed under California’s previous ARL enacted in 2010.  The 2010 ARL required auto-renewing consumer contracts to disclose terms clearly and conspicuously, obtain affirmative consumer consent before imposing a charge, provide an acknowledgment that contains the terms, the cancellation policy, and provide a simple cancellation method.

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