AB 417

This bill requires a person making a renewal offer, which is defined in the bill

to mean a plan or arrangement for consumer goods or services offered to a consumer

in which a subscription or purchasing agreement either continues until the

consumer cancels or is automatically renewed at the end of a definite term for a

subsequent term, to do all of the following:

1. Present the terms of the renewal offer clearly and conspicuously, in a manner

capable of being retained by the consumer.

2. If the renewal offer includes a free gift or trial, present in the renewal offer

a clear and conspicuous explanation of the price that will be charged after the trial

ends or the manner in which the subscription or purchasing agreement pricing will

change upon conclusion of the trial.

3. Refrain from charging a consumer for a renewal offer without the consumer's

affirmative consent to the renewal offer terms.

4. Provide to the consumer certain acknowledgements, including the renewal

offer terms, the cancellation policy, the available methods for cancellation, and

information regarding how to cancel in a manner that is capable of being retained

by the consumer.

5. Provide easy-to-use mechanisms for the consumer to cancel a renewal offer,

including giving consumers who accept a renewal offer online the opportunity to

terminate the renewal offer provisions online.

6. Provide to consumers notice of any material change in the terms of a

previously accepted renewal offer.

7. Under certain circumstances, provide certain notices to a consumer before

the renewal offer automatically renews or continues for a subsequent term.

The bill also requires that any goods, wares, merchandise, or products sent to

a consumer under a renewal offer without having first obtained the consumer's

affirmative consent shall be considered an unconditional gift to the consumer.

The bill gives the Department of Agriculture, Trade and Consumer Protection

the ability to investigate violations and commence an action to restrain by injunction

violations and permits the department and any district attorney to commence

actions to recover forfeitures for a violation of the bill's provisions. Individuals

aggrieved by a violation of the bill may also bring a private civil action against the

violating person.