California: Automatic Renewal Law Reminder

Though the California Automatic Renewal Law went into effect in December 2010, recent litigation has prompted us to reinform readers about what is at stake. The law applies to individual consumer contracts where the consumer authorizes an automatic recurring charge. The Automatic Renewal Law calls for enhanced disclosure requirements in contracts entered into by any consumer in California, regardless of the location of the company. All contracts must contain an honest and clear disclosure, avoiding deceptive “fine print.” Merchants offering automatic renewal subscription services that are found non-compliant with the law are subject to restitution of all the renewal revenues. In other words, if you are found non-compliant, you may have to return all of the revenue you received from every California customer who has authorized a recurring automatic charge! To read more, go here.

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