California Automatic Renewal Law (CAR) Defense Attorneys
Experienced Defense Counsel for Companies Nationwide Facing Litigation Under California’s Automatic Renewal Law
Automatic Renewal Law Defense Attorney
Team Lead
Automatic Renewal Law Defense Attorney
Team Lead
Companies that violate California’s Automatic Renewal Law (CAR) can face steep penalties in government enforcement actions. Additionally, while CAR does not include a private right of action, consumer protection attorneys can “tether” claims related to continuous service terms, automatic renewal terms, and complex cancellation mechanisms to claims under California’s Unfair Competition Law (UCL) and Consumer Legal Remedies Act (CLRA). In other words, CAR violations pose substantial risks, and companies that are facing legal action related to alleged non-compliance must be prepared to defend themselves by all means available.
Business Litigation Counsel for CAR Cases in the California Courts
We defend companies nationwide that are facing lawsuits and enforcement actions related to automatic renewal or continuous service requirements, cancellation requirements, informed consent requirements, and other matters covered under CAR. Our defense team is led by James Bell, a renowned trial attorney who has a proven record of success in complex and high-value litigation.
If your company is facing litigation related to an automatic renewal offer or cancellation policy for a paid subscription, a free gift or free trial, or any other matter covered under CAR, we can help. To learn how we can help, contact us for a free consultation today.
Matters We Handle
The California Automatic Renewal Law (also referred to as the “Automatic Renewal Law,” or “ARL”) is designed to protect consumers from being effectively forced to automatically renew online subscription services due to a complex cancellation process or unclear cancellation instructions. It also imposes other requirements related to auto renewal terms for businesses that automatically bill for recurring charges, including notice requirements on checkout pages and subsequent notice requirements and post-purchase acknowledgements.
Due to the Automatic Renewal Law’s breadth, ARL cases have become commonplace. The California Attorney General’s Office and consumer protection attorneys target several common pitfalls, and companies that have failed to do what is necessary to ensure compliance can face substantial liability. We defend companies nationwide in cases including:
Consumer Protection Lawsuits Involving Automatic Renewals and Continuous Service Offers
As mentioned above, while CAR does not include a private right of action, consumer protection attorneys can “tether” CAR-based claims lawsuits filed under California’s other consumer protection laws, including specifically the Unfair Competition Law (UCL) and Consumer Legal Remedies Act (CLRA). If your company has received a demand letter or been served with a complaint in one of these cases, we can help.
We can also help if your company is facing a class action lawsuit related to consumers’ “express affirmative consent” rights established under CAR. Plaintiffs’ law firms are using CAR-related claims to pursue class action cases as well, and companies that are facing class action lawsuits need experienced legal counsel who can defend them effectively.
California Attorney General Enforcement Actions Under CAR
We also represent companies that are facing government enforcement actions under CAR. The California Attorney General’s Office is actively pursuing these cases and is encouraging consumers to come forward when they have issues with minimum purchase obligations, automatic renewal offer terms, subscription cancellations, or other mechanisms covered under the statute. We have substantial experience defending clients against the government.
Understanding the Basic Requirements Under CAR
Assessing the risks involved in a CAR-related lawsuit or enforcement action starts with understanding whether (or to what extent) a company is in compliance with the statute. With this in mind, here is a brief introduction to some of the basic requirements under CAR:
1. Displaying Subscription and Renewal Terms in a Clear and Conspicuous Manner
The California Automatic Renewal Law requires companies to display subscription and renewal terms in a clear and conspicuous manner. Companies must display all material facts in visual proximity to where customers click to purchase or opt in, and they cannot bury additional terms regarding consumers’ right to cancel in fine print.
2. Obtaining Express Affirmative Consent to Auto Renewal
Under CAR, companies are required to obtain “express affirmative consent” to auto renewal from California consumers. This applies to any subscription, online or otherwise. The renewal period and renewal terms must be clearly stated, and it must be clear that customers are signing up for recurring payments unless and until they cancel their subscription.
3. Automatic Renewal Notice for Service with an Initial Term of One Year or Longer
For services and subscriptions with an initial term of one year or longer, companies are required to send automatic renewal notices to consumers in California. If a consumer cancels upon receipt of an automatic renewal notice, the consumer may not be billed for a renewal term.
4. Automatic Renewal Notice for Free and Discounted Trial Periods
The law also imposes automatic renewal notice requirements for free and discounted trial periods. Before any fee change takes effect, consumers in California must be clearly informed of the fee change and how they can cancel if they wish to do so.
5. Annual Reminders About Auto-Renewal and Continuous Service Plans and Other Notice Requirements
Companies have various other reminder and notice requirements related to continuous service offers and auto renewals under CAR as well. If a company fails to comply with any of CAR’s automatic renewal terms or cancellation terms, the company can face litigation under the statute—and it will need to be prepared to execute a strategic defense to avoid unnecessary liability.
Why to Choose Oberheiden P.C. for CAR, CLRA, and UCL Litigation in California
Oberheiden P.C. is a business litigation law firm with a national presence. The attorneys on our California defense team have extensive experience protecting companies of all sizes against substantial liability in civil and governmental litigation proceedings. Whether defending clients against single-plaintiff lawsuits, class action lawsuits, or government enforcement proceedings, we take the same basic approach to every case we handle:
- Comprehensive Risk Assessment – We begin by conducting a comprehensive risk assessment focused on the allegations at issue.
- Strategic Defense Formulation – Once we have a clear understanding of our client’s risks, we then formulate a defense strategy tailored to the circumstances at hand.
- Vigorous Defense Execution – Rather than taking a reactive approach to litigation, we vigorously execute our clients’ defenses to take control of the process.
- Clear Communication – Throughout the process, we maintain clear communication with our clients’ leadership team.
- Outcome–Focused Counsel – In all cases, our goal is to secure a favorable outcome as efficiently as possible that protects our clients’ interests going forward.
Put our highly experienced team on your side
Dr. Nick Oberheiden
Founder
Attorney-at-Law
Lynette S. Byrd
Former DOJ Trial Attorney
Partner
Brian J. Kuester
Former U.S. Attorney
Hon. Kevin McCarthy
55th Speaker, U.S. House of Representatives (ret.)
Government Consultant
Mike Pompeo
Of Counsel
Former U.S. Secretary of State
John W. Sellers
Former Senior DOJ Trial Attorney
Linda Julin McNamara
Federal Appeals Attorney
Nicholas B. Johnson
Former Prosecutor
Roger Bach
Former Special Agent (DOJ)
Chris J. Quick
Former Special Agent (FBI & IRS-CI)
Michael S. Koslow
Former Supervisory Special Agent (DOD-OIG)
Ray Yuen
Former Supervisory Special Agent (FBI)
FAQs: Defending Against Litigation Involving California Consumers’ Rights Under Automatic Renewal Programs
Can California consumers sue under the Automatic Renewal Law?
California consumers cannot sue directly under the state’s Automatic Renewal Law, as it does not include a private right of action. However, plaintiffs’ attorneys can “tether” ARL-related claims to lawsuits filed under California’s other consumer protection laws—and this is becoming increasingly common.
What other California laws allow consumers to sue for automatic renewal violations?
While California’s Automatic Renewal Law does not include a private right of action, consumers in the state can sue for automatic renewal violations under the Unfair Competition Law (UCL) and Consumer Legal Remedies Act (CLRA). We are seeing plaintiffs’ firms pursue CAR-related claims in both single-plaintiff lawsuits and class action litigation.
If your company is facing scrutiny from the California Attorney General’s Office under CAR, you should engage experienced defense counsel promptly. The Attorney General’s Office is prioritizing CAR-related enforcement, as well as enforcement of “the protections offered by other California laws that protect consumers against unlawful, unfair, and deceptive practices, including those that take the form of dark patterns or otherwise interfere with consumer choice.”
What are the penalties for violating California’s Automatic Renewal Law?
California’s Automatic Renewal Law imposes penalties of up to $2,500 per violation. The term “violation” is defined narrowly, with each individual consumer transaction constituting a separate violation. As a result, a single enforcement action can potentially involve hundreds, if not thousands, of individual violations. As noted above, the California Attorney General’s Office is aggressively pursuing these cases, and companies accused of violating the ARL must be prepared to defend themselves effectively.
What damages can plaintiffs seek in California consumer protection litigation?
In consumer protection litigation under California law, plaintiffs can seek compensatory damages, punitive damages, attorneys’ fees, and equitable remedies. As a result, companies’ potential exposure in these cases is substantial as well. For companies targeted in consumer class action litigation in California —including litigation involving auto-renewal violations—quickly building and executing a strategic defense is imperative for mitigating the risk exposure involved.
Contact the California Automatic Renewal Law Defense Attorneys at Oberheiden P.C.
If your company is facing litigation under California’s automatic renewal law, we encourage you to contact us promptly for more information. We are available to defend companies throughout California and nationwide. To arrange a complimentary initial consultation with one of our senior defense attorneys as soon as possible, call 888-680-1745 or tell us how we can get in touch online now.
