Online subscriptions have become the norm for products and services. With the help of the widely adopted subscription models, you can access more features and information. Although the services offer customization and are more convenient, many users have complained about renewing subscriptions without consent and about many obstacles that make unsubscribing quite cumbersome. To deal with this issue and protect users, California users are given the option to cancel their subscriptions with one click, credited to a new law introduced recently in California.
California has passed a new law to be effective in mid-2025 that will give users the option of Click to Cancel subscriptions
A new bill has been enacted in California called "Click to Cancel" after many users shared their frustrations with the complicated opting-out process for subscription models. The law would protect subscribers from dealing with such issues by having companies adhere to simpler ways of canceling subscriptions, the same way initially signing up for the process is.
The Californian law has received attention from the Federal Trade Commission (FTC). It is paving the way for its establishment at a federal level for a more uniform approach to the problem at hand. FRC proposed this last year after Adobe was accused of shady practices for subscriptions.
The proposed rule would require businesses to make it at least as easy to cancel a subscription as it was to start it. For example, if you can sign up online, you must be able to cancel on the same website, in the same number of steps.
Users in the past had to deal with having to cancel through subscriptions by making calls that either had long hold times or involved being transferred to various departments, and many would end up continuing with the subscription only because of how tedious it was to unsubscribe. Under the Law, AB 2863 is made to rectify this issue and simplify subscription cancellation. The bill is further detailed:
The bill requires companies offering automatic renewals and continuous services to provide consumers a means to cancel the subscription 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. This ensures that consumers can easily exit from services they no longer want, without being trapped by confusing processes or hidden fees.
The Click to Cancel Law in California will become effective in mid of 2025, giving companies ample time to adapt to it and make the required changes to adjust to the new law.
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