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California’s Click-to-Cancel Subscription Law: What AB 2863 Requires

California’s AB 2863 requires clear subscription disclosures and accessible cancellation for covered agreements entered into, amended, or extended from July 1, 2025.
From TheFinanceBase Team4 min to read
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California’s AB 2863 was signed into law on September 24, 2024, and its covered requirements apply to contracts entered into, amended, or extended on or after July 1, 2025. The law updates rules for automatic renewals and continuous services, including free trials that become paid subscriptions. For consumers, its central cancellation rule is practical: if a business lets you sign up online, it must provide an online way to cancel without obstructive or delaying steps.

What California’s click-to-cancel law covers

Assembly Bill 2863, authored by Assemblymember Pilar Schiavo, became Chapter 515 of the Statutes of 2024 when Governor Gavin Newsom signed it on September 24, 2024. The operative requirements apply to covered contracts entered into, amended, or extended on or after July 1, 2025. That threshold means the law is not retroactive to every existing agreement simply because a consumer still has it. The chaptered bill text controls the requirements and application date; the Governor’s signing announcement confirms enactment and summarizes the same-medium cancellation rule.

AB 2863 is not limited to streaming services. It applies to covered automatic-renewal and continuous-service offers made to California consumers. An automatic renewal includes a paid subscription or purchasing agreement renewed for another term, as well as an arrangement that converts a free period to paid service unless the consumer cancels. Continuous service generally continues until the consumer cancels, and includes free-to-pay conversions.

What businesses must disclose and obtain before enrollment

Before a covered transaction is fulfilled, businesses must present its offer terms clearly and conspicuously near the request for consent, then obtain the consumer’s express affirmative consent to those terms. They must retain proof of that consent for at least three years or one year after the contract ends, whichever period is longer. The business must also send an acknowledgment that includes the terms, cancellation policy, and instructions for cancelling. Contract information cannot undermine affirmative consent, and businesses may not misrepresent material facts about the transaction. The statute sets out these disclosure, consent, recordkeeping, and acknowledgment duties.

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When renewal and price-change notices are required

The law sets advance-notice rules for certain promotions and renewals. The timing depends on the offer, so the notice windows should not be treated as one general deadline.

  • Free trials or promotional prices lasting more than 31 days: A reminder is generally due between three and 21 days before the offer period ends.
  • Automatic renewal after an initial term of at least one year: A notice is generally due between 15 and 45 days before renewal.
  • Annual automatic-renewal or continuous-service agreements: An annual reminder must be sent in the activation medium or the medium in which the consumer is accustomed to interacting with the business. It must identify the product or service, charge frequency and amount, and cancellation method.
  • Fee increases: The business must give notice and cancellation information between seven and 30 days before the change takes effect.

Covered notices before billing information is confirmed must state whether the agreement renews, its term, expected cost and billing frequency, how to cancel, and the business’s contact information. The chaptered text specifies the applicable notice requirements and timing. Read the statutory notice provisions.

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How consumers must be able to cancel

A business that permits online enrollment must also permit online termination at will, without additional obstructive or delaying steps. The statute allows more than one kind of online route; it does not require every company to use a particular one-click button.

  • Online link or button: A prominent direct link or button may appear in the consumer’s account or profile, or in device or user settings.
  • Formatted termination email: A business may provide an immediately accessible email formatted for the consumer to send a cancellation request.
  • Authentication and offline alternative: Account holders may be required to authenticate online. A consumer who cannot or will not authenticate must be offered an offline cancellation method.
  • Activation or customary contact medium: Cancellation must also be available through the medium used to activate the service or the medium in which the consumer is accustomed to interacting with the business.

These routes and conditions come from AB 2863’s cancellation provisions. They distinguish the required outcome—an accessible way to end the service—from a single prescribed interface design.

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Retention offers are allowed only if cancellation remains available

The law does not ban every attempt to retain a customer. A business may present a discount, benefit, or information about the consequences of cancelling, but the consumer must remain able to complete cancellation. Online, a prominent “click to cancel” link or button must remain continuously and proximately displayed alongside the retention offer.

For telephone cancellations, the business must first clearly tell the consumer that saying “cancel” or an equivalent word completes the cancellation, and it must then process that request promptly. A toll-free cancellation line must be answered promptly during normal business hours. If a consumer leaves a cancellation voicemail, the business must process it or call back within one business day. These conditions are described in the chaptered text.

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What the law means if you are trying to stop a charge

For an eligible agreement, start with the business’s account, profile, or device settings and look for a direct cancellation link or button. If the business uses a formatted cancellation email instead, use the immediately accessible option it provides. If you cannot or do not want to authenticate online, ask for the offline method. For a phone cancellation, the statute says the business must make clear that saying “cancel” completes the request; if you leave a cancellation voicemail on a toll-free line, note the date and retain any confirmation or call-back information.

AB 2863 establishes requirements for covered contracts and offers, not a guarantee that every company has implemented every process correctly. The controlling questions are whether the contract was entered into, amended, or extended on or after July 1, 2025, whether the arrangement falls within the covered renewal or continuous-service rules, and whether the business’s cancellation route meets the statutory requirements. The sources establish the law’s requirements, not company-by-company compliance.

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