PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

California’s Subscription Laws Gain Another Victory

By Tom Nawrocki
August 19, 2025
in Merchant, News
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Prepaid Tech Innovation: Not Just for Gift Cards

Prepaid Tech Innovation: Not Just for Gift Cards

Meal kit delivery company HelloFresh will pay $7.5 million to settle a civil lawsuit in California, which alleged the company deceptively enrolled consumers into auto-renewing subscription plans without proper disclosure or consent. These actions were found to violate the state’s Automatic Renewal Law and False Advertising Law.

Considered some of the strongest subscription regulations in the nation, California’s Auto Renewal Law has expanded significantly in recent years. Businesses using subscription models across the country will need to stay on top of these developments.

The complaint alleged that HelloFresh failed to clearly disclose subscription terms before collecting payment, did not obtain affirmative consent before charging customers’ credit or debit cards, and neglected to offer a simple and accessible cancellation mechanism.

In settling the suit, HelloFresh admitted no liability. “We take our commitment to customer transparency very seriously, and our subscription model and cancellation policies have been consistently clear to customers throughout the whole customer journey,” the company said in a statement.

A Law Grows Even Tougher

California’s Auto Renewal Law has long been one of the most comprehensive laws on subscription payments in the U.S. Over the years, it has led to settlements with businesses ranging from Peacock to SeaWorld.

Importantly, California keeps revisiting the law to add more teeth to it. Notable updates in recent years include measures that went into effect in July.

Among the changes: consumers must now receive an annual reminder that clearly states the renewal frequency, the amount to be charged, and step-by-step instructions for cancellation. In addition, businesses must offer cancellation options through the same channel the subscription was initiated—for example, if sign-up happened online, cancellation must also be available online, not just over the phone. 

Changes Around the Country

Other states have begun to follow California’s lead. In November, new restrictions will take effect in New York that are, in some ways, even stricter than those in California. For example, businesses operating in New York will be required to clearly disclose the price and terms of any automatic renewal offer—including detail cancellation instructions—before they can even request a consumer’s consent.

These state-level protections are being strengthened at a time when the federal government is pulling back. Just last month, a federal appeals court blocked a “click-to-cancel” subscription rule issued by the Federal Trade Commission during the final months of the Biden administration.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Auto-renewalCaliforniaHelloFreshRegulationSubscriptions

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Dual-rail recurring billing for agentic commerce

    Fueling Agentic Commerce with Dual-Rail Recurring Billing

    May 1, 2026
    credit union p2p

    How Should Legacy Banks Compete with Chime?

    April 30, 2026
    Prepaid cards for payroll and tipping

    Tips on a Prepaid Card: A Practical Solution with Broad Industry Impacts

    April 29, 2026
    credit-push fraud

    Inside the Battle Against Credit-Push Fraud: What’s Changing

    April 28, 2026
    real-time payments fraud

    Stopping Fraud in Real-Time Payments Before It Starts

    April 27, 2026
    Navigating Global Fintech Regulations Through Strategic Regulatory Arbitrage

    PACE Act Could Open Fed Payment Rails Beyond Banks

    April 24, 2026
    fraud agentic risks

    As Fraud and Agentic Risks Mount, Data Provides Continuity

    April 23, 2026

    Thirty Years and Counting: Bank of America Renews Alaska Air Deal

    April 22, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result