Starting January 1, 2027, covered businesses must explain automatic-renewal terms, get customer consent before charging, and make cancellation easy.
Covered businesses must explain subscription renewal terms before signup, get consent before charging, and offer an easy way to cancel and stop future charges.
For long renewals, major contract changes, or trials that become paid, covered businesses must give customers advance notice of the price and how to cancel.
The attorney general may set penalties of up to $500 per violation, but most covered businesses get 30 days to fix a problem before a penalty applies.
Covered businesses must explain renewal terms before signup, get the customer's consent before charging, and offer a simple way to cancel. These rules cover paid goods or services that renew automatically for personal, family, or household use. The law excludes businesses below its employee or revenue thresholds, counting parent, subsidiary, and affiliated companies together. The terms must explain renewal, cancellation, charges, renewal length, and any minimum purchase. For a free or discounted trial, the business must explain the price after the trial; for an offer with a discount, gift, or trial, customers must be allowed to cancel before being charged. The law takes effect January 1, 2027.
Covered businesses must notify customers before certain renewals or changes from a trial to paid service. Notice is required for renewals lasting 12 months or longer, a material contract change such as a price increase, or a change from a trial period to paid service. The notice must give the renewal terms, amount to be charged, and cancellation instructions. A person with fewer than 50 employees or less than $5 million in annual revenue is exempt from these notices if it follows the law's disclosure, consent, and cancellation rules. The law also has a separate provision that appears to exempt businesses below those thresholds from the whole chapter; the text does not explain how the provisions fit together. The notice must arrive at least three days before renewal or conversion. The law takes effect January 1, 2027.
The attorney general may set a civil penalty of up to $500 for each violation. These penalties apply to violations of the automatic-renewal chapter by a person covered by it. Before enforcement or a penalty, a business generally must receive written notice and 30 days to fix the violation; a timely fix with written confirmation avoids a penalty for that violation. The chance to fix a violation does not apply to willful or repeated violations. A person with good-faith compliance efforts and reasonable procedures is not liable for technical or inadvertent violations that cause no material harm. The enforcement rules take effect January 1, 2027.
No hearings or votes scheduled.