New California law makes big changes to subscriptions, what consumers need to know

California has reaffirmed its commitment to consumer protections with the passage of Assembly Bill 2863. The law, set to take effect on July 1, 2025, introduces stricter regulations on automatic renewal and continuous service offers, aiming to ensure transparency and prevent consumers from being trapped in unwanted subscriptions.

What AB 2863 does

AB 2863 mandates businesses offering automatic subscription renewals or continuous service plans to clearly present terms upfront, secure explicit consent before charging, and retain proof of consent for at least three years or one year after the contract ends.

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