Are you subscribed to a million different subscription services? I definitely know I am. The list seems neverending, from streaming services to mobile music providers to computer software. With so many subscriptions, it is only natural to want to cancel some of them when you stop using them as much. However, if you’re like me, you find it really hard to find out how to cancel. It’s…almost…like these companies want us not to be able to leave. Well, it turns out many other people noticed this, too.
Companies constantly renew subscriptions without prior notice and put a canyon between users and a cancellation button. A new California law tries to prevent this and mandates what every platform should already have: a single-click cancel.
On Sep. 24, Gov. Gavin Newsom signed Assembly Bill No. 2863, penned by Assemblymember Pilar Schiavo, into law. The bill was part of a much larger group of signings that aimed to increase California’s transparency for consumers. The law, effective July 1, 2025, simplifies leaving subscription contracts and establishes safety measures for consumers.
“Nobody wants to get ripped off, whether it’s a small subscription fee that’s seemingly impossible to cancel or massive medical debts which force families into financial ruin. We’re strengthening protections for Californians across the board and helping save consumers money,” Gov. Newsom said.
The bill targets auto-renewing subscriptions that are particularly easy to sign up for but hard to cancel, continue until terminated, or convert from free to paid automatically unless canceled. I have sadly been a victim of the latter. California has also been increasing digital purchase protections for consumers.
Companies that offer automatic renewals must “provide consumers a means to cancel the subscription using the same medium they used to sign up.” For example, if you are able to click a button to initiate a subscription for something online, then companies must give consumers the option to cancel that subscription online using the process. The simplified process ensures that more people can easily unsubscribe from unwanted services without going on a wild goose chase or hidden fees.
“At a time when too many in our community are struggling, unwanted subscription renewals can really add up. AB 2863 is the most comprehensive ‘Click to Cancel’ legislation in the nation, ensuring Californians can cancel unwanted automatic subscription renewals just as easily as they signed up – with just a click or two,” said Assemblymember Schiavo.
Other than being able to click a link to cancel your subscription, the bill also mandates businesses to send subscribers a reminder of the cost of the service and how to cancel it. Consumers must also be informed of changes in subscription prices in advance of charging anything.
California may be setting a precedent for the rest of the country to follow. The Federal Trade Commission has already proposed similar rules. It wouldn’t be good to have another Adobe situation on our hands. The law goes into effect halfway through next year.
