Key Takeaways
- A new bill in California mandates easy cancelation processes for subscription services.
- Assembly Bill 2863 stands to ensure that the procedure to cancel subscriptions becomes as easy as signing up for them.
- The bill would apply to subscriptions signed, changed or extended after July 1, 2025.
Companies make it super easy and intuitive for you to subscribe to their services, but when push comes to shove and it’s time to cancel that service, the process promptly becomes multi-faceted.
There are hidden cancelation menus, phone-only cancelations, cancelation forms, and the dreaded “we’d hate to see you go, here’s a discount” screen. The lack of a straightforward cancelation or unsubscribing process erodes trust in the service, and makes it feel like the company deliberately makes the cancelation procedure confusing — and Amazon is a prime example.
Lawmakers in California have heard consumers’ frustrations, and Governor Gavin Newsom has signed “a package of bills” to address user concerns, as highlighted by Android Authority. One of the new bills, namely Assembly Bill 2863, stands to ensure that the procedure to cancel subscriptions becomes as easy as signing up for them.
It essentially mandates that businesses which offer subscription-based services should also offer a straightforward method for cancelations “using the same medium they used to sign up; for example, a person who subscribes online has to be given an online click-to-cancel option.”
A major victory for users in California, the bill which has been signed into law will ensure that companies don’t use dark practices to retain users. Assembly member Pilar Schiavo, a supporter of the bill, stated, “AB 2863 is the most comprehensive ‘Click to Cancel’ legislation in the nation, ensuring Californians can cancel unwanted automatic subscription renewals just as easily as they signed up – with just a click or two.”
The new rule won’t apply until July 1, 2025
The FTC has proposed similar rules, though they’re yet to materialize. We’re hoping that other states take notice and follow California’s lead to foster a consumer-friendly landscape. The bill would apply to subscriptions signed, changed or extended after July 1, 2025, giving companies a little over nine months to birth simpler canceling procedures.
Elsewhere, as part of the “package” of bills signed, SB 1061 ensures medical debt will no longer be included on consumers’ credit reports, while AB 2017 and SB 1075 ensure Californians are protected against unfair banking fees and practices.
