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IT Technology

New California Law Requires One-Click Subscription Cancellations (thedesk.net) 89

A new law in California will make it easier for consumers to cancel their streaming subscriptions and similar products when they enroll in automatic renewal of those services. From a report: The law, passed through Assembly Bill (AB) 2863, will require companies that offer automatic subscription renewals through one-click purchases to also offer customers a way to cancel their subscriptions through the same one-click method. California already had one of the toughest subscription cancellation laws in the country, requiring companies to offer a way to cancel a recurring subscription through the Internet if they allowed customers to sign up for a service that way.

The initial law was meant to prevent companies from allowing customers to purchase a subscription through the web, while forcing them to call a hotline to cancel them. Consumer advocacy groups complained that companies would often subject customers to frustrating long wait times on the phone with the hope that they would eventually hang up without cancelling their service. While the law was good in theory, it contained at least one loophole: Companies were in compliance as long as they offered a way for customers to cancel their subscriptions online, but could make them click several links or visit several webpages with opt-in requirements before a cancellation request was processed.

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New California Law Requires One-Click Subscription Cancellations

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  • by Mitreya ( 579078 ) <mitreya.gmail@com> on Wednesday September 25, 2024 @09:54AM (#64816095)
    Now who is also going to pass legislation that companies cannot continue charging subscription after the credit card expired.
    In my recent experience, only one place kept hounding me to update the card. Several other vendors were able to renew the subscription anyway (even though I did not update the card on record).
    • by Hoi Polloi ( 522990 ) on Wednesday September 25, 2024 @10:02AM (#64816129) Journal

      I'd blame the CC company for letting it happen. A canceled card is a canceled card. No more charges and don't transfer them to my new card.

      • by AmiMoJo ( 196126 )

        It's a nomenclature issue. A cancelled card is just that - the card itself was cancelled, not the account. What you want is a closed account, or a new way to block further transactions from a particular retailer.

        • What you want is a closed account, or a new way to block further transactions from a particular retailer.

          I apologize for going off topic here but I wanted to mention that I want a way to block transactions from a particular retailer that exceed an amount I define. It's bad enough that more and more of them want to directly reach into my wallet, they love price increases, too. T-Mobile, for example, raised my rates after a very public statement that they would not. A few months before that they disallowed using credit cards to get a $20/mo autopay discount. So they now they have a very real chance of makin

          • T-Mobile Money

            Hey now, I get a great exchange rate to AT&T Nickels. I only get charged a 3% currency fee, 7% convenience fee & a 12% government compliance fee. Bargain!

            • Heh. "oops we charged your credit card twice, here's a T-Mobile Credit that you certainly cannot use to pay your power bill."

        • A cancelled card is just that - the card itself was cancelled, not the account.

          I don't follow the logic. They are using the cancelled card to continue the sub. If the card is cancelled, it doesn't work. Yet, they use some cheap tricks to somehow continue charging.
          Don't worry they'll just update the T&C to say, "we are gods, we'll do whatever we want. You now owe us a $30 cancelled card use fee"
          The credit card companies are just in bed with the oligopoly corps to con you out of your money. They'll lie, cheat and steal all the way.

          • by tlhIngan ( 30335 )

            I don't follow the logic. They are using the cancelled card to continue the sub. If the card is cancelled, it doesn't work. Yet, they use some cheap tricks to somehow continue charging.

            No, there are ways around the cancelled card thing. There are services that will automatically update payment information - if you get a card cancelled and get issued a new card, these services will automatically send the updated card information to services that are subscribed. Sometimes the service can query card providers

          • I don't follow the logic. They are using the cancelled card to continue the sub.

            No they aren't. They use the credit card once to create a pre-authorised charge token on the account, and reuse that token for the subscription fee every month. The card itself is only used for the initial setup and as a convenient way to tell the customer where to look for the money. They are not using a cancelled card, they can't do that. They are charging your account.

    • by mspohr ( 589790 )

      I had a recurring subscription to some service and had to call them several times to try to cancel but they just wouldn't do it.
      I finally removed my credit card information from my account so they couldn't charge it.
      They continued to charge my account and I accumulated a balance due. I just ignored their pleas for payment and they eventually gave up.

      • by Pascoea ( 968200 )

        I just ignored their pleas for payment and they eventually gave up.

        That's all well and good until they sell your account to the blood suckers. The kind of "collections companies" that buy the debt for pennies on the dollar and are have some insanely unscrupulous business practices. I hope you never have the pleasure of having one of those sorts of companies on your tail. And most likely the "I cancelled my card and haven't used the service since" isn't a sufficient excuse to absolve you of the debt.

        • by mspohr ( 589790 )

          Yes, you're right.
          Fortunately that didn't happen to me but it could.
          This is common with medical debt (which has higher balances hence more incentive to collect).

        • Oh, it's actually those particular dregs of the earth that you *DO* want hounding you. It's the real lenders like the originating banks that can grief you and get away with it. See, this is an industry whose mission statement could trivially be paraphrased to: "Let's find people who've already had a run of misfortune, pile more misfortune on them, and now we can all get our jollies by kicking them while they're down!" That sort of outlook does not compel high-quality people into choosing it as their care

          • by Pascoea ( 968200 )

            You need contact information leading back to the agency.

            This is the biggest part of the plan that falls apart. The types of shitty companies I'm talking about don't exist very long. They open their doors, buy a shitload of the "pennies on the dollar" debts, squeeze as much blood out of the turnip as they can for a few months, then fold up shop. By the time you get your lawsuit paperwork filled out "Shitty Collection Company LLC" doesn't exist anymore. When your process server shows up to the address provided, someone identifying themselves as representing "Shi

      • by tlhIngan ( 30335 )

        I had a recurring subscription to some service and had to call them several times to try to cancel but they just wouldn't do it.
        I finally removed my credit card information from my account so they couldn't charge it.
        They continued to charge my account and I accumulated a balance due. I just ignored their pleas for payment and they eventually gave up.

        Not likely.

        In fact, chances are your account is just one of many being bundled up to be sold to a collection agency.

        It may appear that they've given up, but in

    • Whenever I can I use PayPal for recurring renewals. It's a quick and simple online process to block automatic renewal selectively by subscription using PayPal. Another "trick" that works is to change your payment method to a prepaid virtual card number you've created with an outfit like NetSpend. Change the payment method (be sure to remove your original method) on the account you want to cancel and then cancel the virtual card.
  • I'd rather see a law requiring that canceling be approximately as easy as enrolling. Those businesses that have zero customer support and a sign up page but when you look for canceling it you find out there is no web page.

    • I'd rather see a law requiring that canceling be approximately as easy as enrolling.

      I disagree. Canceling should be much easier.
      To enroll you have to provide a lot of information (name, address, credit card) and choose a plan. No reason why cancelling should be that hard.

  • Did they post about the veto of this bill by the governor before posting about the bill itself?

    https://yro.slashdot.org/story... [slashdot.org]

    • by dskoll ( 99328 )

      That was a different bill (AB-3048). This is bill AB-2863.

      • That was a different bill (AB-3048). This is bill AB-2863.

        Thanks, it all looked similar but I failed to locate the bill number for the other one after a quick search of the ./ article. I retract my concern.

  • by hwstar ( 35834 ) on Wednesday September 25, 2024 @10:40AM (#64816259)

    Most businesses want a recurring revenue stream and will go to great lengths to protect it. They're sort of like aphids on a plant. They use the state as "ants" (regulatory capture, power of authority) to protect the aphids, and the ants "tax" the aphids by extracting the honeydew. Think of the consumers as the "plant" they're pretty powerless to stop the ant/aphid racket, especially at the federal level in the USA.

    I wouldn't be surprised if the business affected by this get a law passed to preempt the California Law. Businesses are too powerful in the USA. The syatem is deliberately set up to elevate the interests of businesses over the public good.

    • Most businesses want a recurring revenue stream and will go to great lengths to protect it. They're sort of like aphids on a plant. They use the state as "ants" (regulatory capture, power of authority) to protect the aphids, and the ants "tax" the aphids by extracting the honeydew. Think of the consumers as the "plant" they're pretty powerless to stop the ant/aphid racket, especially at the federal level in the USA.

      I wouldn't be surprised if the business affected by this get a law passed to preempt the California Law. Businesses are too powerful in the USA. The syatem is deliberately set up to elevate the interests of businesses over the public good.

      Don't worry. For the moment Gavin Newsome will veto this. He's too business oriented to let something this people oriented pass.

    • Around here car washes keep popping up all over the place. I found out they all enroll you for a subscription plan.

  • banks (Score:4, Interesting)

    by groobly ( 6155920 ) on Wednesday September 25, 2024 @12:32PM (#64816575)

    Does this law include the ability to cancel recurring debits from bank accounts? That's more dangerous than recurring credit card charges.

    Years ago I signed up for my utility company to direct debit my payments. After years of paying, I was moving away and went to cancel. The system asked for a password, but I had not established a password when I signed up; just my acct and the credentials for the bank; and I never looked at their website after. Customer service said "what is your password?" When I said I never created one, they said "Ok, but what is your password." I had to go to the utility's president's office to eventually get it resolved. It took about a dozen phone calls.

    • Does this law include the ability to cancel recurring debits from bank accounts? That's more dangerous than recurring credit card charges.

      Years ago I signed up for my utility company to direct debit my payments. After years of paying, I was moving away and went to cancel. The system asked for a password, but I had not established a password when I signed up; just my acct and the credentials for the bank; and I never looked at their website after. Customer service said "what is your password?" When I said I never created one, they said "Ok, but what is your password." I had to go to the utility's president's office to eventually get it resolved. It took about a dozen phone calls.

      Moral of the story: Never let any company reach INTO your accounts. Use something like check-free to push payments to them.

      • by whitroth ( 9367 )

        Don't let them into your accounts, but use whatever "check-free" is?

        Nope. I write checks for my bills. Nobody gets into my account but me.

    • No because you can already do that. Banks typically give you insight and the ability to block these kinds of transactions.

  • Quick, it's a race to apply for dodgy patents describing subscription cancellation buttons that move around the screen really quickly! Chase that button, subscriber, chase it!
    • No doubt.

      Some of us who prefer keyboards to mouse clicks, would just tab to the button and press the space bar. But most people these days have no idea you can even do that.

      • Yes, but most people these days use mobile devices. I can see, in the not too distant future, in a cafe, on the bus, etc., we'll occasionally see someone poking frantically at their mobile device screen & people will remark, "Ah, they must be trying to cancel a subscription."
  • ...companies would be compelled to offer cancellation/opt-out via the exact same methodology that one subscribed/opted in. None of this "join online, but have to send a registered letter snail mail to cancel" crap.

  • Pass a law making recuring subscription service(s) illegal. Now that's one I would vote for.
    • If you actually want a service to continue every month, I personally don't *want* to have to sign up again every month. I like it that my prepaid cell phone plan auto-renews each month. It saves me from having to do anything to just keep it going. Subscriptions aren't an inherently bad thing. It's just that some services abuse their subscribers.

    • Oh I hope they do this. I'm sure people like you will quite pestering us with your silly ideas out of frustration just wasting your time trying to keep your internet connected, your phone paid, your power going, your water and gas on etc.

      Seriously dude have a think about what you just said. Subscription to recurring payments are virtually essential for modern life.

      • Oh I hope they do this. I'm sure people like you will quite pestering us with your silly ideas out of frustration just wasting your time trying to keep your internet connected, your phone paid, your power going, your water and gas on etc.

        Seriously dude have a think about what you just said. Subscription to recurring payments are virtually essential for modern life.

        We all survived long before paying for something over and over again became "virtually essential for modern life." You should never have to keep buying something you already paid for period!

  • Just looking at all that recent work that FTC has been doing and this, I have to ask. Why do mostly progressive government bodies do this sort pro consumer stuff and conservatives mostly want the markets to figure it out? It is reasonably clear that markets can be manipulated and consumers do suffer at the hands of businesses big and small.

Never test for an error condition you don't know how to handle. -- Steinbach

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