Canceling subscriptions will be much easier for California residents, thanks to new law

Gov. Gavin Newsom is making it easier for state residents to cancel subscriptions.

On Tuesday, Newsom signed AB 2863, which requires businesses to offer a simple way for users to cancel their online subscriptions. For example, if a user signs up for a service online, businesses must now offer an online click-to-cancel option.

The law also requires businesses to send subscribers an annual reminder about the subscription’s cost, how to cancel and potential price changes.

AB 2853 is part of a broader legislative package designed to strengthen consumer protections and address medical debt.

“Nobody wants to get ripped off, whether it’s a small subscription fee that’s seemingly impossible to cancel or massive medical debts that force families into financial ruin. We’re strengthening protections for Californians across the board and helping save consumers money,” Newsom said in a statement.

As California lawmakers continue to create consumer protection laws for residents, the federal government is also cracking down on the issue nationally.

The Federal Trade Commission has been working on its “Click to Cancel” rule since March 2023. The proposal would cover the same ground as AB 2853.

In August, the Biden Administration announced its “Time Is Money” initiative, which aims to crack down on “all the ways that corporations—through excessive paperwork, hold times, and general aggravation—add unnecessary headaches and hassles to people’s days and degrade their quality of life.”

California’s AB 2863 will impose various safeguards on subscription contracts signed or renewed after July 1, 2025.

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