California will require online businesses that offer free trials to tell customers exactly how much an automatic renewal will cost under a law signed by Gov. Jerry Brown on Thursday.
The law's author, Sen. Bob Hertzberg (D-Van Nuys), thinks the bill, known as SB 313, will make it easier for customers to cancel service.
“Consumers need to know what they are signing up for and that they can just as easily cancel any service or subscription online as when they started it online," Hertzberg said in a statement.
Streaming services like Hulu and Spotify and the file-sharing site Dropbox have elicited lawsuits and consumer complaints about their automatic service renewals, according to Hertzberg's statement.
The law goes into effect in July.