Several class actions have been filed recently against companies offering music and video subscription services online for allegedly not complying with California’s Automatic Renewal Laws (California Business and Professions Code § 17602). This statute may apply whenever a company enrolls a California resident in an “automatic renewal” or “continuous service” Yes-Nooffering, where the customer’s subscription or service is renewed until he or she cancels. To comply, a business must take three steps:  (1) clear and conspicuous disclosure of essential terms of the subscription offer, (2) obtain affirmative agreement by the subscriber to those terms, and (3) provide a copy of the terms, including how to cancel the subscription, in a form that the subscriber can keep for his or her records.
Continue Reading New Class Action Threat: Is Your Company Complying With California’s Automatic Renewal Laws?