California’s Automatic Renewal Law: What Wineries Need to Know

Last Updated: January 2026

Legal disclaimer: The following content is for informational purposes only and does not constitute legal advice or create an attorney-client relationship.  Entities and individuals should consult their own legal counsel for guidance. 

What is California’s Automatic Renewal Law (ARL)? 

The ARL is a consumer protection law that prevents deceptive practices in automatic renewal and continuous service offers. The ARL can apply to wine clubs and other subscription-based wine services. Codified in Business and Professions Code section 17600 et seq., the ARL establishes rules for how businesses present and manage recurring subscriptions, disclose renewal terms, obtain consumer consent and provide methods for consumers to cancel their subscriptions. The ARL has been amended multiple times, with the most recent changes in July 2025, applying to consumer agreements entered, modified or renewed on or after that date.   

Why Compliance Matters 

The ARL is a “no-fault” statute which means a business can be found in violation even if it unknowingly and unintentionally failed to comply, and a consumer suffered no actual harm. Consumers have a private right of action for ARL violations under the state’s Unfair Competition Law, which also entitles consumers to restitution and injunctive relief. Businesses may also be held liable for violations under California’s False Advertising Law. 

Federal Law 

Businesses are also responsible for ensuring compliance with the Federal Trade Commission’s Negative Option Rule and the Restore Online Shoppers’ Confidence Act (ROSCA), a federal consumer protection law that governs online transactions involving automatic renewals or “negative option marketing.” That said, California’s ARL largely tracks and in many ways exceeds the federal laws. 

Checklist 

To assist California wineries with compliance, we prepared a practical checklist available here, to guide review of your winery’s operations. This non-exhaustive checklist covers key requirements outlined below. As always, members should consult with legal counsel to ensure full compliance.   

VIEW CHECKLIST →

Key Requirements 

Wineries should routinely review their practices and the ARL to maintain compliance. Below is a non-exhaustive summary of some key provisions. 

Consent   

With regards to consumer consent, a business must: 

• Obtain “express affirmative consent” from consumers to the terms of an auto-renewal or continuous service offer. Cal. Bus. & Prof. Code § 17602(a)(4).   
• Ensure nothing interferes with, detracts from, contradicts or otherwise undermines a consumer’s ability to provide consent. Cal. Bus. & Prof. Code § 17602(a)(5).  
• Retain records verifying the consumer’s consent for three years or one year after the contract ends, whichever is longer. Cal. Bus. & Prof. Code § 17602(a)(6). 

Disclosures and Notices 

• Auto-renewal and continuous service offers must contain “clear and conspicuous” disclosures including: (1) that it will keep renewing until the customer cancels; (2) how to cancel; (3) the amount and frequency of recurring charges, including any known future price changes; (4) the length of each renewal period; and (5) minimum purchase requirements, if any. Cal. Bus. & Prof. Code §§ 17601(a)(2)(A)-(E). 
• “Clear and conspicuous” means in larger type than the surrounding text, or in contrasting type, font or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks, in a manner that clearly calls attention to the language. In the case of an audio disclosure, “clear and conspicuous” and “clearly and conspicuously” means in a volume and cadence sufficient to be readily audible and understandable. Cal. Bus. & Prof. Code § 17601(a)(3). 
• Businesses must provide an acknowledgment to the consumer in a retainable form (e.g., email) that includes the auto-renewal or continuous service terms, how to cancel and (if there’s a free gift or trial) instructions on how to cancel before it converts to payment. Cal. Bus. & Prof. Code § 17602(a)(3). 
• With limited exception, there are additional requirements for businesses that provide free or promotional trials lasting 31 days or less and for subscriptions with an initial term of one year or more. Cal. Bus. & Prof. Code § 17602(b). 
• Renewal notices must include a statement that the auto-renewal or continuous service will continue unless the consumer cancels; the length of the renewal term, the methods available for cancellation, the business’ contact information and either a direct link to cancel or another accessible electronic method that allows the consumer to cancel online. Cal. Bus. & Prof. Code §§ 17602(b); 17602(a)(8).   
• Businesses must send annual reminders for agreements that renew each year using the communication method the consumer typically uses with the business, and it must identify the service being renewed, how often and how much the consumer is charged and how to cancel. Cal. Bus. & Prof. Code § 17602(h).  
• Before confirming billing information, businesses must notify the consumer that the auto-renewal or continuous service will renew automatically and include the renewal period, the amount or range of charges, one or more cancellation methods and contact information. Cal. Bus. & Prof. Code § 17602(a)(8). 
• If fees change under an existing auto-renewal or continuous service, businesses must provide notice of the change at least seven, but no more than 30, days before the new fee takes effect, and the notice must include cancellation instructions and be provided in a retainable form. Cal. Bus. & Prof. Code § 17602(g).   

Cancellation  

• Consumers must be able to cancel at will, without unnecessary steps or delays. Businesses must disclose cancellation methods, which may include a toll-free phone number, email, postal address (if the seller directly bills by mail) or another cost-effective and timely option. For online agreements, the business must provide a simple online cancellation method, such as a direct link or termination email. Cal. Bus. & Prof. Code § 17602(c)-(d). 
• Consumers must be able to cancel subscriptions by the same medium used to sign up or that the customer typically uses to interact with the business (e.g., in person, telephone, email). If subscriptions initiated by phone, a business must “clearly and conspicuously” display a cancellation phone number on its website. Cal. Bus. & Prof. Code § 17602(f). 
• If a consumer attempts to cancel online, a business may offer discounts or benefits to the consumer but must also provide a clear “click-to-cancel” button or link. IF a consumer cancels by phone, businesses can present offers only after clearly telling the consumer they can cancel at any time by saying “cancel” or similar words.  Cal. Bus. & Prof. Code § 17602(e). 
• If a business permits consumers to cancel via a toll-free telephone, it must promptly answer calls during business hours, not obstruct or delay a consumer’s ability to cancel and if the consumer leaves a voicemail seeking cancellation, the business must either process the requested cancellation or call the customer back within one business day. Cal. Bus. & Prof. Code § 17602(c)(2). 

Other Provisions 

• The ARL applies to “free-to-pay conversions” (i.e., free trials that convert to payment unless canceled before the end of the trial period). Cal. Bus. & Prof. Code § 17601(a)(1) and (5)-(6). 
• The ARL prohibits misrepresentation or omissions related to the entire transaction which means enforcement may not be limited to the terms of the auto-renewal or continuous service. Cal. Bus. & Prof. Code § 17602(a)(7).