§ 17601. — 17601. (Amended by Stats. 2024, Ch. 515, Sec. 1.)

California § 17601.

• Jurisdiction: California
• Code BPC: Business and Professions Code - BPC
• Div. 7.: DIVISION 7. GENERAL BUSINESS REGULATIONS
• Part 3.: PART 3. REPRESENTATIONS TO THE PUBLIC
• Ch. 1.: CHAPTER 1. Advertising
• Art. 9.: ARTICLE 9. Automatic Purchase Renewals

Text

(a)
For the purposes of this article, the following definitions shall apply:
(1)
“Automatic renewal” means a plan, arrangement, or provision of a contract that contains a free-to-pay conversion or in which a paid subscription or purchasing agreement is automatically renewed at the end of a definite term for a subsequent term.
(2)
“Automatic renewal offer terms” and “continuous service offer terms” means the following clear and conspicuous disclosures:
(A)
That the subscription or purchasing agreement will continue until the consumer cancels.
(B)
The description of the
cancellation policy that applies to the offer.
(C)
The recurring charges that will be charged to the consumer’s credit or debit card or payment account with a third party as part of the automatic renewal plan or arrangement, and that the amount of the charge may change, if that is the case, and the amount to which the charge will change, if known.
(D)
The length of the automatic renewal term or that the service is continuous, unless the length of the term is chosen by the consumer.
(E)
The minimum purchase obligation, if any.
(3)
“Clear and conspicuous” or “clearly and conspicuously” means in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the
same size by symbols or other marks, in a manner that clearly calls attention to the language. In the case of an audio disclosure, “clear and conspicuous” and “clearly and conspicuously” means in a volume and cadence sufficient to be readily audible and understandable.
(4)
“Consumer” means any individual who seeks or acquires, by purchase or lease, any goods, services, money, or credit for personal, family, or household purposes.
(5)
“Continuous service” means a plan, arrangement, or provision of a contract that contains a free-to-pay conversion or in which a paid subscription or purchasing agreement continues until the consumer cancels the service.
(6)
“Free-to-pay conversion” means, in an offer or agreement to sell or provide any goods or services, a provision under which a customer receives a product or service
for free for an initial period and will incur an obligation to pay for the product or service if they do not take affirmative action to cancel before the end of that period.
(b)
The amendments made to this section by the act adding this subdivision shall only apply to a contract entered into, amended, or extended under this article on or after July 1, 2025.

Legislative History

Amended by Stats. 2024, Ch. 515, Sec. 1. (AB 2863) Effective January 1, 2025.