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CA SB 2863 Signed by CA Gov Newsom

Posted by Marc Roth | Sep 26, 2024 | 0 Comments

Oops ... they did it again!  As the Sun will rise in the east, as a bear will s**t in the woods, as my beloved NY Mets will likely blow their NL East Wild Card chances (again!), and as a Tarantino flick will inevitably end in a gratuitously bloody mess, California continues to maintain its status as the country's leader in auto renewal burdens on business...er...legislation.

 
press release issued by the CA AG office earlier this week announced that Gov Gavin Newsom signed SB 2863 into law on September 23.  We provided a full write up on this bill in our August 27 blog post, but one late change to the bill not covered in that post was the removal of a proposed requirement that a seller obtain a consumer's consent to the automatic renewal or continuous service "separately from any other portion of the contract."  This language did not make it in the final version of the bill (phew!) and was instead replaced with the addition of "express" in Section 17602(a)(4)"obtain the consumer's express affirmative consent...to the offer tems."  Unclear exactly what is meant by "express affirmative consent" as that term is not defined in the law, but the removal of "separate" is huge, like really huge.  Big props to the industry folks who worked with Rep Schiavo's office to get this change through.  This amendment becomes effective July 1, 2025 and will apply to contracts entered into, amended, or extended on or after that date.
 
As for the status of the FTC's Negative Option Rule rulemaking...[insert cricket emoji here].  Starting to feel like the Maytag repairman.  

About the Author

Marc Roth

Marc advises clients on all things advertising, marketing, promotions and privacy, having practiced in these areas for decades, in various capacities. A former Federal Trade Commission attorney, he understands regulatory priorities and concerns, which enables him to provide informed and practical advice to clients and prepare for the possibility of challenge. Having served as Chief Marketing Counsel for a Time Warner subsidiary, he knows the type of advice his clients need to do their job – prompt and practical answers, not lengthy and indecisive memos. He knows that “no” is not an option for in-house lawyers serving their business teams and works tirelessly with clients to develop viable and effective solutions acceptable to all stakeholders.

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