California State Assemblywoman Pilar Schiavo has announced the introduction of AB 2863, a bill aimed at protecting consumers and putting more money back in people’s pockets by simplifying the cancellation process for subscription services.

This legislation aligns with similar Federal Trade Commission initiatives by consumers with a “Click to Cancel” option for subscriptions, ensuring the process to unsubscribe is as easy and accessible as signing up.

“The subscription economy makes their money on the backs of consumers, using deceptive practices that cause people to spend more money than they want to. Especially at a time when families are struggling just to get by, things like monthly subscriptions can really add up. This bill will protect people’s pocketbooks from these manipulative subscription models,” said Schiavo. “The subscription economy is on track to reach a $1.5 trillion market by 2025, so now is the time to ensure that consumers are protected.”

Research in 2022 showcased that an average of 42% of consumers continue to pay for subscriptions they no longer utilize, costing them approximately $133 more each month. These practices often go unannounced, as companies fail to remind consumers of upcoming renewals, leveraging forgetfulness to boost profits.

“In a world where subscription services too often trap consumers in a maze of renewal processes, AB 2863 puts power back with consumers, where it belongs,” said Robert Herrell, Executive Director of the Consumer Federation of California. “CFC is sponsoring AB 2863 because consumers deserve transparent, understandable subscription choices and an easy cancellation process, much like what the FTC is proposing. This bill keeps consumers from unwanted subscriptions and bureaucratic frustration.”

“AB 2863 will help people keep the approximately $133 they spend each month on subscriptions they don’t use, giving them much needed money for everyday expenses that are already so challenging to afford,” said Schiavo.

The bill will begin moving through the California State Assembly later this month.