Recurring Subscriptions Get a New Law in California
California has enacted updated legislation for the Automatic Renewal Law (ARL). The ARL governs the oversight of businesses with automatic subscriptions and renewal services. This legislation imposes new requirements on businesses that offer subscriptions and free trial offers.
The Automatic Renewal Law changes go into effect July 1, 2022. After July 1, companies offering automatically renewing subscription services to California customers must clearly notify consumers about subscription renewals, provide easy cancellations, display clear messaging and more.
These new amendments to the California law will impact companies offering subscription-style products and services to consumers. Businesses must reassess their online design and transaction pages to ensure compliance.
California’s ARL was one of the first of its kind, and other states have recently enacted ARLs with similar requirements so we can expect this to become the new normal. The Sunrise Integration ecommerce team has been preparing for these new requirements and is poised to assist new and existing clients with these regulations.