Contracts: automatic renewal provisions.

Existing law generally regulates formation and enforcement of contracts, including how a contract is extinguished. 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, charge the consumer for an automatic renewal or continuous service without first obtaining the consumer's affirmative consent, and to fail to provide an acknowledgment that includes the automatic renewal or continuous service offer terms, cancellation policy, and information regarding how to cancel in a manner that is capable of being retained by the consumer. This bill would require a business that makes an automatic renewal or continuous service offer that is subject to the above-described requirements to provide a consumer with an email address or option on the business' Internet Web site for the consumer to communicate his or her decision to not renew the subscription or purchasing agreement. The bill would also require, within 24 hours of receipt of a consumer's communication to not renew the subscription or purchasing agreement, the business to notify the consumer of receipt of the consumer's communication. The bill would require the business to honor this decision.