This new legislation mandates that companies provide a cancellation method that matches the subscription method, ensuring that online subscriptions can be canceled online.

Consumer advocacy groups have long criticized previous laws for allowing companies to impose lengthy wait times on phone cancellations, often leading to abandoned attempts.

California Governor Gavin Newsom has signed Assembly Bill 2863 into law, aimed at simplifying the cancellation of subscriptions, particularly for streaming services.

Companies are required to send annual reminders about subscription costs and cancellation procedures, as well as notify customers of any price changes.

The law is set to take effect in mid-2025, giving companies time to adjust their practices to comply with the new regulations.

Despite the law's passage, Newsom expressed concerns about the practicality of mandating features for mobile operating systems, citing existing opt-out options available to consumers.

Consumer Federation of California's executive director emphasized that the law is crucial for consumer protection and will enhance control over finances.

The law addresses problematic practices where canceling subscriptions was often more complicated than signing up, requiring consumers to navigate multiple links or lengthy phone calls.

Under the new law, businesses must inform consumers of fees and renewal terms before confirming billing information for free trials or promotions.

The legislation is seen as a model for consumer protection against difficult cancellation processes nationwide, with the potential to influence similar laws in other states.

The Federal Trade Commission (FTC) is also working on national consumer protections related to subscriptions, indicating a broader movement towards simplifying cancellation processes.

Overall, AB 2863 represents a significant step towards improving consumer rights and simplifying the cancellation process for subscription services.