California Enacts 'Click to Cancel' Law to Simplify Subscription Cancellations

New legislation mandates that companies must offer easy online cancellation options, effective mid-2025.

Governor Gavin Newsom signed Assembly Bill 2863, known as the 'Click to Cancel' law, to protect consumers from difficult subscription cancellation processes.
The law requires companies to provide an online or in-app option for canceling subscriptions, matching the ease of the sign-up process.
The Federal Trade Commission (FTC) has shown interest in implementing similar regulations at the federal level, following investigations into companies like Adobe for deceptive practices.
Businesses must obtain explicit consent before enrolling consumers in automatic renewals and provide annual reminders about subscription costs and cancellation methods.
The law will take effect in mid-2025, allowing companies time to adjust their processes to comply with the new requirements.