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Compliance Deadline Approaching:

Amendments to California's auto-renewal law take effect in July

On July 1, new requirements under California's automatic renewal will take effect. As we previously blogged, the amendments will require businesses to make it even easier for consumers to cancel and impose new requirements on free trials, promotional offers, and offers with an initial term of one year or longer.

The amendments provide that consumers who enroll in automatic renewals online must be able to cancel online "without engaging in any further steps that obstruct or delay the consumer's ability to terminate the automatic renewal or continuous service immediately." The merchant must provide a method of cancellation that is online in one of the following formats: a prominently located direct link or button, which may be located within either a customer account or profile, or within device or user settings; or by an immediately accessible termination email formatted and provided by the business that a consumer can send to the business without additional information.

Notices must also be provided for free gift offers or certain promotional trials lasting more than 31 days that convert into an automatic renewal. Businesses offering negative option (continuity) programs with an initial term of one year or longer must now provide notice at least 15 days and not more than 45 days before the automatic renewal offer or continuous service offer renews.

Please select this link to read the complete article from OSAP Member VonLehman CPA & Advisory Firm.

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