Article 9. Automatic Purchase Renewals - California Business and Professions Code Section 17601

17601.  For the purposes of this article, the following definitions
shall apply:
   (a) "Automatic renewal" means a plan or arrangement in which a
paid subscription or purchasing agreement is automatically renewed at
the end of a definite term for a subsequent term.
   (b) "Automatic renewal offer terms" means the following clear and
conspicuous disclosures:
   (1) That the subscription or purchasing agreement will continue
until the consumer cancels.
   (2) The description of the cancellation policy that applies to the
   (3) The recurring charges that will be charged to the consumer's
credit or debit card or payment account with a third party as part of
the automatic renewal plan or arrangement, and that the amount of
the charge may change, if that is the case, and the amount to which
the charge will change, if known.
   (4) The length of the automatic renewal term or that the service
is continuous, unless the length of the term is chosen by the
   (5) The minimum purchase obligation, if any.
   (c) "Clear and conspicuous" or "clearly and conspicuously" means
in larger type than the surrounding text, or in contrasting type,
font, or color to the surrounding text of the same size, or set off
from the surrounding text of the same size by symbols or other marks,
in a manner that clearly calls attention to the language. In the
case of an audio disclosure, "clear and conspicuous" and "clearly and
conspicuously" means in a volume and cadence sufficient to be
readily audible and understandable.
   (d) "Consumer" means any individual who seeks or acquires, by
purchase or lease, any goods, services, money, or credit for
personal, family, or household purposes.
   (e) "Continuous service" means a plan or arrangement in which a
subscription or purchasing agreement continues until the consumer
cancels the service.

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Last modified: February 16, 2015