Calif.'s Subscription Renewal Law: A Class Action Engine

Law360, New York (May 6, 2014, 5:51 PM EDT) -- Effective December 2010, California enacted its Automatic Renewal Law ("ARL"), Business & Professions Code Sections 17600 et seq., in an effort to end the practice of ongoing charging of consumers, without their explicit consent, for continuing services or products, such as online music and paper magazine subscriptions. As business models increasingly rely on automatic renewals, streaming content, perpetual subscriptions and electronic billing, the ARL now tops the list of dangerous curves businesses must navigate if they are to construct a California-compliant subscription plan. And, although the ARL's stated purpose is straightforward, applying its mandates to myriad varied business transactions requires both business acumen and legal finesse....

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