Consumer Federation of California

Consumers are increasingly falling victim to a common, and often deceptive, business practice involving automatic renewals of products and services. The practice often occurs when a consumer thinks he/she is making a one-time purchase for a product, or receiving a product for free, only to later receive additional shipments of the product and charges to his/her credit card. These unforeseen charges are often the result of agreements enumerated in the fine print of an order or advertisement.

The California Senate today unanimously approved SB 340, authored by Senator Leland Yee (D-San Francisco/San Mateo), which will require businesses to clearly and conspicuously state the automatic renewal offer terms and obtain the customer