CA AB2863

Expands definitions of "automatic renewal" and "continuous service" to include free-to-pay conversions, where customers receive free products or services for an initial period then are charged if they do not cancel before the period ends

Requires businesses to obtain express affirmative consumer consent to automatic renewal or continuous service terms and prohibits contract language that undermines consumers' ability to provide informed consent

Mandates businesses maintain verification of consumer consent for at least 3 years or one year after contract termination, whichever is longer, and send annual reminders disclosing the service, charges, and cancellation methods

Requires cancellation to be available in the same medium the consumer used to activate the service and prohibits obstructions or delays, though businesses may offer discounts or retention benefits if consumers can still easily cancel

Mandates notice of fee changes 7 to 30 days before implementation and requires reminder notices 3 to 21 days before promotional periods expire or 15 to 45 days before annual renewals

Applies to contracts entered into, amended, or extended on or after July 1, 2025