Subscriptions and auto-renewals: California's stricter rules
For agreements made, amended, or extended since July 1, 2025, California requires express consent to automatic renewal, easy online cancellation, annual reminders, and notice before price increases.
Reviewed by Laurence S. Bezinover · Published
What changed
AB 2863 amended California's Automatic Renewal Law (Bus. & Prof. Code § 17600 et seq.). Businesses must obtain the consumer's express affirmative consent to the renewal terms and keep proof of it for at least three years, let consumers cancel online through a direct cancellation path and in the same way they signed up, send an annual reminder, and give 7 to 30 days' notice before a price increase. Retention offers are allowed only if the option to cancel is shown at the same time.
A similar federal “click-to-cancel” rule was vacated by a federal appeals court in July 2025, and in February 2026 the FTC restored its older, narrower rule. In March 2026 the FTC asked for public comment on whether to write a new one. None of this changes California's requirements.
Who it affects
Businesses offering subscriptions, memberships, service plans, or free trials that convert to paid plans for California consumers.
Questions to raise with counsel
- Does our sign-up flow get clear consent to the renewal terms, and do we keep a record of it?
- Can customers who signed up online cancel online in one step?
- Are our annual reminders and price-change notices going out on time?
Sources
This briefing is general information about California law, not legal advice for your situation. Reading it does not create an attorney-client relationship.