This document outlines California's Automatic Renewal Law and provides guidance for businesses on how to comply. It recommends that businesses: 1) keep renewal terms in close visual proximity to the agreement; 2) make the renewal terms stand out through formatting; or 3) make the renewal terms clear through explicit language. It also advises that customers must agree to the renewal terms before payment and that it should be easy for customers to cancel through multiple contact methods. The document concludes by stating that businesses should repeat these steps if changing their renewal policies.

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CALIFORNIA’S AUTOMATIC RENEWAL LAW (BUSINESS & PROFESSIONS CODE §§ 17600-17604)
Denis Shmidt
Lewis & Llewellyn LLP
Tel: 415-625-0692
Email: dshmidt@lewisllewellyn.com
Web: www.lewisllewellyn.comQUESTIONS?
KEEP TERMS IN “VISUAL PROXIMITY” OF AGREEMENT
if terms are in audio, make them loud
MAKE THE TERMS STAND OUT
use different type
use different size
use different color
surround text with symbols
OR
MAKE THE RENEWAL TERMS CLEAR
“Charged Weekly, Until You Cancel”
CLIENT MUST AGREE TO RENEWAL BEFORE PAYING
FIRST:
PROVIDE ACKNOWLEDGEMENT
provide renewal terms
provide cancellation policy
provide an option to save this information
MAKE IT EASY TO CANCEL
provide an email address
provide a toll-free number
OR
provide a mailing address
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AND
provide details on how to cancel
WANT TO CHANGE YOUR RENEWAL POLICIES?
Repeat Steps 1-6
they confirm renewal terms
THEN: you can get paid
“Charged Weekly, Until You Cancel”
I Agree
* This outline is meant to be a guide, it does not create an attorney-client relationship, is not intended as a solicitation, and is not intended to convey or constitute legal advice.