Schiavo introduces ‘click to cancel’ bill

Politics and government

News release 

Assemblywoman Pilar Schiavo announced the introduction of Assembly Bill 2863, a bill aimed at protecting consumers and putting more money back in people’s pockets by simplifying the cancellation process for subscription services, according to a news release from Schiavo’s office.  

This legislation aligns with similar Federal Trade Commission initiatives by consumers with a “click to cancel” option for subscriptions, ensuring the process to unsubscribe is as easy and accessible as signing up, the release said. 

“The subscription economy makes their money on the backs of consumers, using deceptive practices that cause people to spend more money than they want to,” Schiavo said in the release. “Especially at a time when families are struggling just to get by, things like monthly subscriptions can really add up. This bill will protect people’s pocketbooks from these manipulative subscription models. The subscription economy is on track to reach a $1.5 trillion market by 2025, so now is the time to ensure that consumers are protected.” 

2022 research reported that an average of 42% of consumers continue to pay for subscriptions they no longer utilize, costing them approximately $133 more each month, the release said, adding that these practices often go unannounced, as companies fail to remind consumers of upcoming renewals, leveraging forgetfulness to boost profits. 

“In a world where subscription services too often trap consumers in a maze of renewal processes, AB 2863 puts power back with consumers, where it belongs,” Robert Herrell, executive director of the Consumer Federation of California, said in the release. “CFC is sponsoring AB 2863 because consumers deserve transparent, understandable subscription choices and an easy cancellation process, much like what the FTC is proposing. This bill keeps consumers from unwanted subscriptions and bureaucratic frustration.” 

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