Through Assembly Bill 2863, California is taking steps to protect consumers from the stress some people feel when it comes to their subscription services.
“I run into friends of a similar age who find that subscriptions are onerous because they feel like, well, if I don't cancel soon enough, I'll get done for it," local resident Emil Flock explained. "There's a kind of this discomfort that comes with subscribing to anything.”
The new state law, which goes into effect July 1, will require businesses to obtain “express affirmative consent” for automatic renewals, disclosure requirements such as renewal conditions, billing frequency, cancellation and even price changes and improved cancellation requirements among other provisions that make it so there are extra protections for consumers.
For example, if someone's subscription price changed, the person would need to be notified of that change at least seven days before. In another example, if someone wants to cancel their subscription, they must be allowed to do so in the same manner that they signed up for the service or subscription.
“I'm on top of it," Flock stated. "But a lot of people get subscriptions that never get turned off and then their spouse has to pay for them when they're deceased.”
According to a CNET survey, consumers will pay on average $90 per month or $1,080 per year on subscriptions, with subscribers averaging $17 per month for subscriptions they don’t use, costing over $200 per year.
It’s about giving power back to the consumer so that they don’t lose money for subscriptions they don’t even know about.
"It seems like a plausible first step to protecting consumers," Flock concluded.
For a full breakdown of the new law, click here.
