California Enacts Laws for Sub Canceling, Digital Downloads
September 27, 2024
California’s “click to cancel” bill has become law, making it easier for consumers to cancel subscriptions. Companies that offer online or in-app sign-ups will now have to make canceling or unsubscribing available online or in-app as well. Assembly Bill 2863 was signed into law this week by Governor Gavin Newsom, though companies have until the middle of next year to comply. Consumers have long complained about companies making it easy to sign up but difficult to cancel services. This law ensures consumers can easily exit from services “without being trapped by confusing processes or hidden fees.”
“California is setting a model for the nation on protecting consumers from unnecessary charges — giving them more control over their finances and helping to ensure fair business practices, providing a win for both consumers and small businesses,” Assemblymember Pilar Schiavo (D-Chatsworth) said in a statement issued by Newsom’s office.
The Federal Trade Commission “proposed a similar law last year that would apply across the U.S., but the finalized rule is still to come,” writes Engadget. This year, the FTC sued Adobe over what were said to be convoluted cancellation practices.
Android Police called the new click-to-cancel law “a major victory for users in California” that “will ensure companies don’t use dark practices to retain users.”
Newsom also signed AB 2426, which requires “digital marketplaces to make clearer to customers when they are only purchasing a license to access media,” Engadget says, adding that “the law will not apply to cases of permanent offline downloads, only to the all-too-common situation of buying digital copies of video games, music, movies, TV shows or ebooks from an online storefront.”
The Verge writes that when this new law takes effect next year, “it will ban digital storefronts from using terms like ‘buy’ or ‘purchase,’ unless they inform customers that they’re not getting unrestricted access to whatever they’re buying,” adding that marketplaces failing to comply “could be subject to fines for false advertising.”
“As retailers continue to pivot away from selling physical media, the need for consumer protections on the purchase of digital media has become increasingly more important,” said California Assemblymember Jacqui Irwin (D-Encino).
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