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As California continues to strengthen its consumer protection framework around subscription services, businesses operating in the state – particularly those offering subscription goods, such as wine clubs – must remain attentive to evolving obligations under the Automatic Renewal Law (ARL).
A key provision, California Business and Professions Code Section 17602(a)(1), requires that businesses present automatic renewal terms for subscriptions clearly and conspicuously before a consumer completes a purchase, ensuring that subscribers understand essential terms of the subscription such as pricing, renewal frequency and cancellation procedures.
With subscription-related litigation and regulatory enforcement on the rise, businesses selling recurring shipments of regulated products such as alcohol should review their online checkout flows, marketing representations and cancellation processes to ensure full adherence to these statutory requirements.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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