What is the Click-to-Cancel Law (AB 2863)?

The California “Click to Cancel Law,” Assembly Bill 2863, effective July 1, 2025, requires companies to make it as easy for consumers to cancel a subscription as it was to sign up for it. For example, if you sign up for a Netflix subscription by clicking a button, you can cancel it by clicking a button (rather than calling, etc.).

AB 2863 also ensures:

• You are fully informed before committing to a recurring or auto-renewing charge
• You have access to simple, fast cancellation
• You receive timely reminders of automatic renewals and conversions from free trials to paid plans
• You receive timely notices of price increases
• You are protected from deceptive or manipulative subscription practices

What types of subscriptions does the Click to Cancel law apply to?

The Click to Cancel law applies to any type of paid subscription for a service, such as streaming entertainment (Netflix, HBO Max, etc.), internet service plans, cell phone service plans, software plans, and more.

What must businesses disclose before you subscribe?

Before you provide billing information, businesses must clearly and conspicuously disclose:

• That the subscription will automatically renew or continue unless canceled
• The length and frequency of the renewal terms
• The recurring charges, including whether the price may change and how often you’ll be billed
• How to cancel the subscription

These disclosures must be presented in a clear, visible way, with no fine print or hidden terms.

What kind of consent must you give?

You must give express, affirmative consent to the automatic renewal. This means you must actively agree to it, separately from other contract terms. For example, clicking a checkbox that says “I understand this subscription will automatically renew for $19.99 per month.” Consent cannot be buried in terms and conditions or obtained through deceptive design.

How must businesses let you cancel?

If you sign up online, you must be able to cancel online, immediately and without obstacles. The cancellation process must be at least as easy as the process to sign up. If you subscribed through a website or app, there must be a “click-to-cancel” feature on that same platform.

Cancellation options must also include any method you used to subscribe—whether that’s by phone, email, in-person, or mail. If cancellation is by toll-free phone, the line must be answered promptly during normal business hours, and voicemails must be returned within one business day.

Also see our Guide to Canceling Contracts

Will you get reminders for charges?

For subscriptions that renew annually, businesses must send a clear reminder each year. That notice must include:

• A summary of what you’re subscribed to
• When and how it will renew
• The amount you will be charged
• How to cancel

The reminder must be sent via the same method used to sign up (such as email, text, or app notification).

What happens if the price changes?

If the business changes the subscription price, it must notify you between 7 and 30 days before the change goes into effect. This advance notice must include clear instructions on how to cancel the subscription if you do not accept the new terms.

What if a business doesn’t follow the law?

If a business fails to comply with AB 2863, for example, by not obtaining proper consent or making it difficult to cancel, the automatic renewal offer is considered invalid. Consumers may have the right to a refund and can report violations to state consumer protection agencies, including the California Department of Consumer Affairs.

Further Resources

Guide to Laws for Consumers in California

Guide to Laws for Consumers in the U.S.

Guide to Canceling Contracts in California

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