California's New Fee & Auto-Renewal Law: What It Gives You
Click-to-cancel is the law: cancel in the same medium you signed up, renewal reminders required, and no drip pricing.
Cal. Bus. & Prof. Code §§ 17600–17606; Cal. Civ. Code § 1770(a)(29) — AB 2863's Automatic Renewal Law amendments apply to contracts entered into, amended, or extended on or after July 1, 2025.
Auto-renewal: consent, reminders, and click-to-cancel
- A business must get your express affirmative consent to the automatic-renewal terms themselves — buried fine print does not count — and keep proof of that consent.
- You must be able to cancel in the same medium you used to sign up: signed up online, cancel online — including a prominently displayed “click-to-cancel” link or button.
- Businesses may not obstruct or delay your cancellation. They can show you a retention offer, but they must still process the cancellation if you want out.
- Free trials and promotional rates that convert to paid subscriptions are covered, with reminder-notice requirements before you start getting charged the full price, plus renewal reminders for longer terms.
- These strengthened rules apply to contracts entered into, amended, or extended on or after July 1, 2025 — which, for month-to-month gym memberships that keep renewing, tends to sweep in most active memberships over time.
Honest pricing: no drip fees
- Since July 1, 2024, California generally prohibits advertising or offering a price that is less than what you will actually pay, excluding taxes and certain shipping costs (Civ. Code § 1770(a)(29)).
- A mandatory fee — an “annual fee,” “initiation fee,” or “facility charge” you cannot decline — generally belongs in the advertised price, not appended at checkout.
| Law | Automatic Renewal Law (as strengthened by AB 2863) + Honest Pricing Law |
|---|---|
| Citation | Cal. Bus. & Prof. Code §§ 17600–17606; Cal. Civ. Code § 1770(a)(29) |
| All-in pricing rule | Cal. Civ. Code § 1770(a)(29) (Honest Pricing Law / SB 478) |
| Auto-renewal / cancellation rule | Cal. Bus. & Prof. Code §§ 17600–17606 (Automatic Renewal Law, amended by AB 2863) |
| Effective | July 1, 2025 (ARL amendments); July 1, 2024 (Honest Pricing Law) — AB 2863's Automatic Renewal Law amendments apply to contracts entered into, amended, or extended on or after July 1, 2025. |
| Enforcement | ARL violations are enforced by public prosecutors and typically pursued by consumers through California's Unfair Competition Law (Bus. & Prof. Code § 17200) and CLRA; under § 17603, goods or services delivered in violation of the ARL are treated as an unconditional gift in the consumer's favor. The Honest Pricing Law is part of the CLRA, which consumers can enforce directly. |
Turn this law into a letter — free
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If they ignore your letter: complain to the state
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Your gym-specific rights still apply
California gym members also keep their separate rights under the health-studio law (Cal. Civ. Code §§ 1812.80–1812.97), including the 5-business-day cooling-off right and relocation/disability cancellation rights.
California new-law FAQ
My California gym signed me up online but says I must cancel in person. Is that legal?
For contracts covered by the amended ARL (entered into, amended, or extended on or after July 1, 2025), cancellation must be available in the same medium you used to sign up — for online signups that includes a prominent click-to-cancel option (Bus. & Prof. Code § 17602). Whether an older membership is covered can depend on when it last renewed or changed — a point courts are still working through.
What happens if a business keeps charging me in violation of the ARL?
Under Bus. & Prof. Code § 17603, goods or services provided in violation of the ARL are deemed an unconditional gift — a strong basis for demanding your money back. Consumers typically pursue ARL violations through the Unfair Competition Law; talk to an attorney about your options.
Is a surprise ‘annual fee’ from my gym illegal in California?
If it is mandatory and was not included in the advertised or offered price, it may violate the Honest Pricing Law (Civ. Code § 1770(a)(29), effective July 1, 2024). Application to any specific fee depends on the facts and how the price was presented.
The ARL amendments are recent and courts are still interpreting them — including exactly which contracts count as “amended or extended” after July 1, 2025, and how the consent rules apply to older memberships. Some industries have exemptions. Verify the current statute text before relying on it, and talk to a California attorney about your specific situation. This page is general information, not legal advice.