California’s new law for cancelling online subscriptions could help us all

A new law which went into force in California, USA on 1 July 2018 will force companies to be more transparent about the way they advertise their subscription services, and make it easier to cancel, TechCrunch reported.

If a company offers a free trial or gift to get you to subscribe, the law requires that there is a “clear and conspicuous explanation” of how much you will be charged when the trial ends, or if the pricing will change.

You must also be told how to cancel, and be allowed to do so before you are charged.

Should the service be offered at a promotional price for a limited time, the company must inform you before it starts billing you the higher tariff at the end of the promotional period.

In addition, if you subscribed online, the law requires that you must be allowed to cancel online. You can no longer be forced to call a customer service phone number to cancel.

The legislation covers “any business that makes an automatic renewal or continuous service offer” in the state of California, which includes newspapers and magazines, and streaming services.

Now read: Netflix testing new Ultra subscription tier

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California’s new law for cancelling online subscriptions could help us all