Assemblywoman Schiavo Introduces Click to Cancel Bill to Protect Consumers

SACRAMENTO - Assemblywoman Pilar Schiavo announced the introduction of AB 2863 today, a bill aimed at protecting consumers and putting more money back in people’s pockets by simplifying the cancellation process for subscription services. This legislation aligns with similar Federal Trade Commission (FTC) initiatives by consumers with a "Click to Cancel" option for subscriptions, ensuring the process to unsubscribe is as easy and accessible as signing up.

"The subscription economy makes their money on the backs of consumers, using deceptive practices that cause people to spend more money than they want to. Especially at a time when families are struggling just to get by, things like monthly subscriptions can really add up. This bill will protect people’s pocketbooks from these manipulative subscription models,” said Assemblywoman Schiavo. “The subscription economy is on track to reach a $1.5 trillion market by 2025, so now is the time to ensure that consumers are protected.”

2022 research showcased that an average of 42% of consumers continue to pay for subscriptions they no longer utilize, costing them approximately $133 more each month. These practices often go unannounced, as companies fail to remind consumers of upcoming renewals, leveraging forgetfulness to boost profits.

“In a world where subscription services too often trap consumers in a maze of renewal processes, AB 2863 puts power back with consumers, where it belongs,” said Robert Herrell, Executive Director of the Consumer Federation of California (CFC) . “CFC is sponsoring AB 2863 because consumers deserve transparent, understandable subscription choices and an easy cancellation process, much like what the FTC is proposing. This bill keeps consumers from unwanted subscriptions and bureaucratic frustration."

Assemblywoman Schiavo continued, "AB 2863 will help people keep the approximately $133 they spend each month on subscriptions they don’t use, giving them much needed money for everyday expenses that are already so challenging to afford.”

The bill will begin moving through the California State Assembly later this month.

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Assemblywoman Pilar Schiavo was elected to the California State Assembly in November of 2022 to represent the 40th Assembly District, representing the Northwest San Fernando Valley and the Santa Clarita Valley. Upon her election, she was appointed as Assistant Majority Whip by the Speaker of the Assembly and now serves as Chair of the Assembly Committee on Military and Veterans Affairs. Prior to her election, Assemblywoman Schiavo was a Nurse Advocate and Small Business Owner who worked in the labor movement for more than 20 years. Throughout her career, Assemblywoman Schiavo helped deliver healthcare, including reproductive healthcare, to more than one million people and fought to put critical dollars in the pockets of workers. In the Northwest San Fernando Valley, she co-founded an organization that helped secure housing for Veterans experiencing homelessness, co-founded an organization that delivered more than 50,000 meals to people in need, and increased resources to help keep our communities safe. Assemblywoman Schiavo lives in Chatsworth with her daughter Sofia where they love to hike in the Santa Susana Mountains.