California's automatic renewal law: what SMBs need to know

California has one of the strictest automatic renewal laws in the US. If you're doing business in California or buying from a California-based vendor, the ARL likely applies — and it gives you real rights.

What the ARL requires

Vendors selling auto-renewing subscriptions to California residents or businesses must: (1) present renewal terms clearly and conspicuously before the sale, (2) get affirmative consent to those terms, (3) send an acknowledgement with cancellation instructions, and (4) provide an easy cancellation mechanism.

The 2022 update

SB 313 requires vendors to allow cancellation online for online-signed contracts, and to send a renewal notice 15–45 days before renewal if the initial term was 12 months or longer.

What to do if the vendor didn't comply

You may have grounds to cancel and recover payments. Document the vendor's disclosures (or lack of them). Contact them in writing referencing §17602. Escalate to your state AG if needed.

This isn't legal advice

It's a summary. For real disputes, talk to a lawyer familiar with California consumer/commercial law.

Frequently asked

Does the ARL apply to B2B contracts?
Yes, in many cases. The statute covers "consumers" but California courts have applied it broadly. Check with counsel.
What's the notice window?
15 to 45 days before the renewal, for contracts with initial terms of 12 months or more.

Track 10 contracts free. Then $29/year for unlimited.

AI extracts the terms and reminds you before every deadline. Upgrade when you need unlimited contracts, chat and MCP.

Track 10 contracts free

See pricing · Check one contract free

Related guides