You no longer have to jump through hoops and hurdles to cancel your subscriptions, as long as you live in California.
Keeping track of subscriptions can be frustrating and expensive. American adults spend an average of $91 each month on subscription services, a CNET survey found, and nearly half have signed up for a free trial of a paid subscription and then forgotten to cancel.
Gov. Gavin Newsom signed the bill into law this week Assembly Bill 286making it easier for consumers to cancel their paid subscription services. The “click to cancel” law, as it is known, updates existing laws governing how California businesses handle cancellations, automatic renewals, and ongoing service offerings for subscriptions.
For online subscriptions, companies must provide an easy and direct way to cancel online.
“AB 2863 is the most comprehensive ‘Click to Cancel’ legislation in the country, ensuring Californians can cancel unwanted automatic subscription renewals as easily as they signed up – with just a few clicks,” said Assemblymember Pilar Schiavo , which is the bill.
These changes not only give consumers a clearer understanding of what they are signing up for, but also protect them from unexpected charges, making automatic renewals friendlier – with better transparency, easier cancellation options and clearer communication about costs and terms. Here’s what you need to know about California’s new law.
For more information, read how to cancel subscriptions on our iPhone or Android phone.
What does California’s ‘click to cancel’ law do?
Under the bill, which takes effect July 1, 2025, companies must offer cancellation using the same method you used to sign up. For example, if you signed up online, you should also be able to cancel the service online. If there is a toll free number for cancellation, it should be answered quickly during business hours and should not be difficult for you to cancel.
A company may offer a discount to entice you to stay, but this shouldn’t stop you from canceling.
The bill also requires companies to obtain your consent for automatic renewals and ongoing services. The company must not mislead you about the terms and conditions and must send annual reminders about the subscription service, including how much you will be charged and how often, unless you cancel in time. They must also show you how to cancel your subscription.
For free trials or promotional offers, the company must notify you of the charges and renewal terms before confirming billing information.
And finally, the bill states that if there is a rate change to your plan, the company must give you clear notice at least seven days before the change takes effect.
