SACRAMENTO, Calif. — California this week enacted a new law that significantly tightens the rules regarding automatic renewal of paid website subscriptions.
Under AB 2683, businesses must receive clear and affirmative consent from customers before charging for services under an automatic renewal or continuous service arrangement, and must send annual reminders to customers that include a full summary of services provided, a breakdown of charges and how to cancel membership.
“Given that many adult websites operate on subscription models, including free-to-pay conversions where a free trial leads to paid services unless canceled, this law will significantly impact operations,” said industry attorney Corey D. Silverstein.
Silverstein added that adult businesses offering such subscriptions will face an extra administrative layer for compliance, record-keeping and regular communication with customers, but noted that the law also protects businesses from claims of hidden fees or unauthorized charges.
The new law also requires online businesses to provide a simplified process for canceling a subscription, including allowing cancellation through the same medium used for the original transaction as well as a clear “Click to Cancel” button.
Silverstein recommends that adult businesses take steps to comply with the law before it takes effect July 1, 2025, to mitigate risks while maintaining consumer trust and avoiding potential legal liability.
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