A consumer in California
A consumer is an individual buying or seeking goods or services for personal, family or household use. A business purchase needs a separate assessment; this is not a blanket rule for every B2B subscription.
CALIFORNIA / RULES & RISKS
Renewal rules have consequences. Know your obligations.
California’s Automatic Renewal Law requires clear terms, customer consent, notices in specified situations and workable cancellation for covered consumer offers. Failures can lead to civil enforcement and consumer claims. Start with who the law covers, then review the duties and consequences.
Reviewed 29 October 2026 · General information, not legal advice.
READING MAPWho it covers.
Who it covers.
What you must do.
What is at stake.
A practical overview of selected duties, with sources you can check. These summaries do not decide whether your particular offer complies.
START HERE / APPLICABILITYDoes this sound
Does this sound
like your business?
Serving a California consumer can matter even when your business is based elsewhere. Start with the offer, the subscriber’s purpose and the contract dates.
It renews or keeps going
The law covers qualifying automatic-renewal and continuous-service offers, including free-to-paid conversions. An annual plan, ongoing membership or trial can raise different duties.
Dates and exemptions matter
AB 2863 changes apply to covered contracts entered into, amended or extended on or after July 1, 2025. Older duties can still apply. Section 17605 exempts specified regulated entities and services, including some utilities, insurers and financial institutions.
Sources: California Attorney General; chaptered AB 2863 via LegiScan; §17605 in the original enacted law (PDF). Confirm the current text and any exemption with qualified counsel.
Before and just after signup
The customer should be able to understand the renewal before agreeing, and keep a copy of what they agreed to.
- 01.1Before sign-up
Clear offer terms
Clearly explain that the subscription keeps going until cancelled. Show the price, billing frequency, renewal length, any minimum purchase and cancellation policy near the request for agreement. Explain what a trial costs after it ends; do not hide or contradict important terms.
- 01.2At sign-up and after
Agreement and a copy to keep
Get the customer’s express agreement to the renewal or continuous-service terms before charging. Give them a copy of the terms and cancellation information they can save. For a trial, explain how to cancel before paying. Keep proof of consent for at least three years, or one year after the contract ends, whichever is longer.
Before some renewals
Check the offer and its dates before choosing a reminder window. If both advance-notice triggers below apply, the law requires the long-term notice. Exceptions can affect coverage.
- 02.13–21 days before
Long trial or discount reminders
For a covered free gift, trial or discount lasting more than 31 days, give notice 3–21 days before it ends. Explain that it renews unless cancelled, the next term, charges and frequency, how to cancel and how to contact the business. Electronic notices need a cancellation link or another accessible electronic path.
- 02.215–45 days before
Long-term renewal reminders
For a covered initial term of at least a year that renews automatically, give notice 15–45 days before renewal. Include the renewal terms, charges and frequency, how to cancel and business contact details. Electronic notices need an accessible electronic cancellation path.
- 02.3Every year
Annual reminders
Covered annual automatic-renewal agreements and continuous-service agreements need a yearly reminder. Identify the product or service, charge amount and frequency, and how to cancel. Use the signup method or a method normally used with the customer. Originally in-person or voice transactions have separate channel options.
When prices or terms change
Price changes have a stated window. Other important changes must be communicated before taking effect, with cancellation instructions.
- 03.17–30 days before
Price changes
For a covered fee change, give notice 7–30 days before it starts. State the new fee and provide cancellation instructions the customer can keep.
- 03.2Before the change
Other important changes
For a covered material change, give the customer a copy they can keep before it takes effect and explain how to cancel. There is no one general number of days for all changes.
When someone wants to cancel
A business needs to make its cancellation path clear and workable for the customer.
- 04.1Match the channel
Clear cancellation
Provide an easy way to cancel through the signup method or a method normally used with the customer. Online signup requires an online cancellation path without steps that block or delay cancellation. A save offer must leave a clear way to finish cancelling. If a customer cannot or will not sign in, another cancellation method must remain available.
- 04.2Within one business day
Phone cancellation requests
When offering toll-free cancellation, answer promptly during normal business hours. If a customer leaves a cancellation voicemail, process it or call back within one business day. A phone signup also needs a phone cancellation option.
THE CONSEQUENCES / CIVIL EXPOSUREWhat happens if
What happens if
you get it wrong?
Exposure depends on the conduct, the claim and the remedy available. A missing record alone does not establish a violation, and there is no single automatic fine for every missed notice.
Penalties, restitution and required changes
California subscription enforcement has resulted in civil penalties, investigative costs, consumer restitution and required changes to subscription practices.
See the HelloFresh announcement and Peacock settlement announcement (PDF). The claims and settlement terms differ by case.
Refund requests and chargebacks
A subscriber who says a charge was unauthorized may request a refund or dispute it with their card provider. Your team needs the original terms and agreement source to understand what happened.
The FTC’s consumer guidance describes disputing unauthorized charges. A refund or chargeback is not automatic.
Some goods can be treated as gifts
Under §17603, goods sent under an automatic-renewal or continuous-service agreement without the required affirmative consent are treated as unconditional gifts. Do not assume this goods provision applies to every digital service.
Read §§17603–17604 in the original enacted law (PDF). Section 17604 permits applicable civil remedies, says an ARL violation is not itself a crime, and includes a good-faith compliance provision. Its application needs legal review.
Organized records support a review. They do not replace the duty.
TermWitness stores the terms, events, notice records and cancellation history your team enters or imports. It does not fix a missed deadline, send subscriber notices, run cancellation or certify compliance. Review the source records and use qualified counsel for legal decisions.
See what TermWitness doesSOURCE NOTECA B&P
§§17600–17606
§§17600–17606
Check the law before relying on a workflow.
California’s Automatic Renewal Law is in Business and Professions Code §§17600–17606. The notice windows above apply only when their specific triggers and conditions are met. A notice may need particular wording, contact details and cancellation access. This guide is a starting point, not a complete checklist.
Read the California Attorney General’s summary ↗ or the chaptered AB 2863 text reproduced by LegiScan ↗. The official consolidated code site was inaccessible during this review; the linked enacted texts and regulator guidance were used instead. Have California counsel confirm current rules and interpretations before relying on them.
NEXT / YOUR RECORDS
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