Legal update
California Subscription Laws — What Changed on July 1, 2025
Two bills — AB 2863 and SB 313 — amended California's Automatic Renewal Law (Bus. & Prof. Code §§ 17600–17606). Most changes took effect July 1, 2025. Here's what's different, in plain English.
1. Cancellation must be at least as easy as signup
If a consumer can sign up online, the company must let them cancel online in the same number of steps or fewer — no phone-only cancellation, no mandatory chat with a "retention specialist," no mailed letters. The cancel path must be prominent, not buried in account settings.
2. Advance notice of any price increase
Before a recurring price goes up, the company must send a clear and conspicuous notice — typically email — that states the new price, when it takes effect, and how to cancel. Silent price hikes are no longer permitted.
3. Annual reminders for long-term subscriptions
For subscriptions that renew for a year or longer, the company must send an annual reminder that discloses the recurring charge, the amount, and cancellation instructions.
4. Free-trial and promotional-pricing disclosures
When a free trial converts to a paid subscription, or a promotional price ends and reverts to a higher rate, the company must clearly disclose the conversion price and date in advance and give the consumer a way to cancel before the charge posts.
5. Remedies remain strong
Under § 17603, products or services provided in violation of the ARL are treated as an unconditional gift to the consumer. Consumers may also pursue claims under the Unfair Competition Law (§ 17200) and the Consumers Legal Remedies Act.
What this means for consumers
If you signed up online after July 1, 2025 and can't find a one-click cancel path — or you were charged a higher price without warning — that's a red flag. Document it, keep the email receipts, and tell us.
Summary written for consumers, not legal advice. Statutes and regulations change. Consult a licensed California attorney about your specific situation.