Newsom Signs New Legislation

Governor Newsom just signed new legislation amending B & P Code Section 17602 dealing with “Automatic Renewals.”  The section was originally added a few years ago and provided certain conditions if the contract automatically renewed for a period in excess of thirty (30) days.  Much has previously been written about the section.    

The current bill signed by the Governor becomes effective on July 1, 2022 and adds new provisions to Section 17602.  A link to a copy of the amended bill is attached.  I suggest that the bill be read carefully if your contract with the subscriber contains an automatic renewal for more than thirty (30) days.  

Particular attention should be paid to Section (d) (1) which states:

“In addition to the requirements of subdivision (b), a business that allows a consumer to accept an automatic renewal or continuous service offer online shall allow a consumer to terminate the automatic renewal or continuous service exclusively, online, at will, and without engaging any further steps that obstruct or delay the consumer’s ability to terminate the automatic renewal or continuous service immediately.  The business shall provide a method of termination that is online in the form of either of the following:

“(A) A prominently located direct link or button which may be located within either a customer account or profile, or within either device or user settings.

“(B) By an immediately accessible termination email formatted and provided by the business that a consumer can send to the business without additional information. . .”

I have only set forth a portion of the requirements and strongly suggest that every company who provides for automatic renewal in their contract read Amended B & P Section 17602.