Automatic renewals: cancellations: notice to consumers.

Existing law makes it unlawful for any business making an automatic renewal or continuous service offer to a consumer in this state to, among other things, fail to present the automatic renewal or continuous service offer terms in a clear and conspicuous manner. This bill would require the cancellation policy of a personal, nonessential services contract, as defined, in any automatically renewed contract under these provisions to include the right of the consumer to cancel for any reason upon 30 days' written notice to the business and also include a statement describing the procedure to cancel the contact. The bill would permit the company to charge a cancellation fee, not to exceed 3 months' charges, for a cancellation within the contract term.