Legislation introduced by Assembly member Mark Berman (D-Palo Alto) that would make it easier for consumers to cancel subscriptions involving free gifts or trials was overwhelmingly passed by the Assembly Privacy and Consumer Protection Committee this week on a 11-0 vote.
The bill, AB 2811, would require businesses who provide free gifts or trials to provide 3 to 7 days’ notice before it could first charge a consumer’s credit or debit card to authorize the purchase of a good or service. The bill would also require the business to provide a link or button on its web page that allows a consumer to terminate the automatic renewal or continuous service exclusively online and “without engaging any further steps that impact or restrict the consumer’s ability to terminate the automatic renewal or continuous service immediately.”The bill is sponsored by the author.
CNPA opposes the measure along with the Association of National Advertisers, the California Chamber of Commerce, the California Retailers Association, MPA – The Association of Magazine Media and several tech and software companies.
CNPA is working with the author’s office on amendments in an attempt to reduce or eliminate liability for newspapers.The bill heads to the Assembly floor where it is eligible to be heard as early as next week.