Law enacted that contracts made online must be canceled online

by Dominic Smith

In July 1, 2018 the law in the State of California, USA, "The contract done on-line must be released online " was enforced.

Bill Text - SB - 313 Advertising: automatic renewal and continuous service offers.
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB313

Companies must let customers cancel subscriptions online, California law says - CNET
https://www.cnet.com/news/companies-must-let-customers-cancel-subscriptions-online-california-law-says/

According to previous laws, businesses offering automatic updating type or continuing type of services to consumers are required to present conditions of service provisioning clearly and prominently, or to provide positive consent of consumers I did not get it and provided the service. In order to provide a safer online service by consumers by improving these circumstances, Article 17602 of advertisement business and vocational provision was amended, abrogated, and added in the State of California, USA. The new law will be enforced from July 1, 2018, the business that provides automatic renewal type services including free gifts and trial versions and ongoing services will be clear about the price that will be charged later You will also need to present a remarkable explanation and present a cancellation method before consumers pay the fee. Also, when the trial period ends or when the price of the subscription contract is changed, it is necessary to present a clear explanation to the consumer side. This law also prohibits automatic renewal of services such as credit cards and debit cards.

Also, the law stipulates that customers who receive automatic update service or continuous service need to be able to cancel the service online. According to the law, "In order to cancel news subscription service, music streaming service, meal plan etc contracted via online, there is no need to call customer service and it is necessary to cancel from online "apparently.

Indeed, there are several people who had a troublesome experience to cancel a contract via online. For example, a man who posted the following tweets called a phone to cancel the online subscription of the New York Times, "I was waited for more than 15 minutes."

Spent 15 min on hold. First rep tried to retain per training, but I told him I had meeting to get back to, just cancel it - he hung up on me.

So I had to call back later that day, hold for another 15 mins to * finally * get it done

- Cory Brown (@ tcb) May 31, 2018

CNET writes that the fact that this law is enforced in the state of California, USA is "significant." That's because the same law applies to companies that have their customers paid in California.

It is necessary to clearly explain how much price will be charged after expiration of the trial period, and automatic renewal type and continuous type service including services that provide free trial version must clearly explain, payment starts to customers Before you need to disclose how to cancel the contract.