Last week, we reported that HelloFresh had agreed to settle an investigation by the California Automatic Renewal Task Force. As part of the settlement, the company is required to pay $7.5 million and make various changes to how it manages subscriptions. Shortly after our post, the California Attorney General issued an alert to remind consumers and businesses about key requirements under the state's Automatic Renewal Law.
Among other things, the alert mentions that companies must:
- Get a consumer's express affirmative consent to the terms;
- Provide reminder notices with specific disclosures under various circumstances;
- Notify consumers of changes to offer terms; and
- Provide an easy cancellation method, including an online cancellation option for consumers who signed up online.
The alert ends with a reminder that Automatic Renewal Law is enforced by the Attorney General's Office, as well as by District and City attorneys across the state, and it invites consumers to submit complaints about companies who fail to comply with the law. As we've noted in our other posts, we expect to see increased enforcement in this area in the coming months.
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