“Click-to-Cancel” Law Enforced in California

By August Tales

No More Clickbait

Have you subscribed to more streaming, music, and software subscriptions than you can count? I know I have. But finding the cancel button for these services can be like searching for a needle in a haystack. It’s almost as if these companies don’t want us to leave their grasp. Luckily, many have noticed this frustrating truth.

Regulating the Canyon Between Users and Subscription Cancellation

Companies often renew subscriptions without visible warning, leaving users scrambling to cancel. Meanwhile, a trailblazing California law steps in. This law asks for nothing more than a single-click cancel — a feature every platform should automatically provide.

On September 24, Governor Gavin Newsom gave the green light to Assembly Bill No. 2863. Authored by Assembly member Pilar Schiavo, this bill forms part of a larger effort. Its goal? To expand consumer transparency. Effective from July 1, 2025, the law promotes effortless subscription cancellations and sets protective measures for consumers.

Unwanted Subscriptions Add Up

“The law aims to stop consumers from being cheated,” says Gov. Newsom. He acknowledges the struggle people face with seemingly difficult-to-cancel subscription fees. Auto-renewing subscriptions are the major culprits. These services are considerably tricky to cancel and often transform from free to paid unless terminated. I have frustratingly experienced the latter.

A Click Away From Cancel

Companies providing automatic renewals must now offer cancellation via the same mode used for subscription. To illustrate, if you subscribe to a service online, you should be able to cancel it online. This simpler process helps more people easily cancel unwanted subscriptions. This puts an end to elusive ‘quest for cancel’ journeys and hidden fees.

“In a time when many are already grappling with various struggles, these surprising subscription renewals can add to their troubles. AB 2863 serves as the most comprehensive ‘Click to Cancel’ law in the U.S., enabling Californians to cancel automated subscription renewals as easily as they sign up- with just a click or two,” conveys Assemblymember Schiavo.

A New Precedent in Subscription Management

The enacted law further requires businesses to alert subscribers of the service cost and cancellation method. Consumers should also be advised of any subscription price adjustments ahead of any respective charges. This California law could set the pace for the rest of the country.

Even the Federal Trade Commission has already proposed similar rules. After all, none of us want a repeat of the infamous Adobe situation. The exciting thing is this law takes effect mid-next year. Get ready for a future where canceling those unwanted subscriptions becomes as easy as clicking your mouse.