California Implements ‘Click to Undo’ Law

One of the things many of us hate about tech is when a company makes it easy to sign up for a subscription online, but makes it much harder to cancel that recurring payment. You’ll often be asked to call a phone number instead, only to be pestered by automated menus and on-hold music as you try to escape the financial commitment. To counter this kind of deliberate maneuvering by service providers, California lawmakers are now cracking down on the practice by signing a new one-click cancellation measure into law.

Gov. Gavin Newsom on Wednesday signed a series of consumer protection bills, Assembly Bill 2863, aimed at eliminating unfair subscription practices. The new law requires companies offering subscription services to provide a simple, user-friendly cancellation method that mirrors the process used to sign up.

Supporting the initiative, Congresswoman Pilar Schiavo said, “AB 2863 is the most comprehensive ‘Click to Cancel’ legislation in the country, ensuring Californians can cancel unwanted automatic subscription renewals as easily as they signed up, with just one or two clicks.”

Other consumer protection bills signed into law also aim to combat unfair industry practices, including legislation to prevent medical debt from being included on consumer credit reports and protection against abusive bank fees.

The legislation will only apply to subscriptions purchased, changed or extended on or after July 1, 2025, giving companies nine months to comply with the new rules. Consumers in other parts of the United States will just have to hope that the move could set a precedent and prompt other states to consider similar measures.