Unlawful for business that makes automatic renewal/continuous service offer if it does not get consumer affirmative consent to renew separate from other contract portions.
Requires consumer notice be provided before obtaining consumer's billing information and conspicuously state amount or range of costs charged, frequency of charges.
Must send consumer annual reminder disclosing product or service which automatic renewal or continuous service applies, frequency, amount of charges, means to cancel.
Ability to cancel, terminate must be available in same medium consumer used in initial transaction, or same medium consumer accustomed to interacting with business.
If business changing fee, must provide clear and conspicuous notice of the fee change, information how to cancel in specified manner 7 to 30 days before fee change in effect.
Must provide notice to consumer before confirming consumer’s billing information.
Legislative History
On Feb. 15, 2024, bill introduced in Assembly; on May 16, 2024, bill passed Assembly.
On May 16, 2024, bill introduced in Senate; on Aug. 27, 2024, bill passed Senate.
On Sep. 9, 2024, bill enrolled, and presented to governor for review and approval.
Effectiveness
Apply to contracts entered into, amended, or extended on or after Jul. 1, 2025.
Sep. 24, 2024 CAL LEG Governor Approval
On Sep. 24, 2024, CAL LEG reported bill AB 2863 approved by governor, Chapter 515.
