Stop unauthorized charges and recover money using the California Automatic Renewal Law (ARL) and federal consumer protections.
The Legal Framework: Stopping Auto-Renew Charges
Subscription traps and “dark patterns” are primarily regulated by state and federal laws designed to ensure consumers are fully informed and able to cancel easily.
California Automatic Renewal Law (ARL)
Bus. & Prof. Code § 17600 et seq.
The most powerful tool for CA consumers. Its purpose is to stop ongoing charges without explicit, informed consent. It requires four main things:
- Clear & Conspicuous Disclosure: Terms (price, renewal period, cancellation method) must be clear *before* the purchase.
- Affirmative Consent: The consumer must give explicit consent to the recurring charge (e.g., a separate checkbox).
- Post-Transaction Acknowledgment: A confirmation email or receipt must be sent, including the terms, cancellation method, and a notification of future material changes.
- Easy Cancellation: If signed up online, cancellation must be available online, including a “click-to-cancel” link or button (strengthened by 2024–2025 amendments).
Federal Overlay: ROSCA and FTC Rules
The federal **Restore Online Shoppers’ Confidence Act (ROSCA)** and recent FTC rulemaking impose similar, broad requirements on businesses nationwide, making many of the same disclosure/consent/cancellation requirements mandatory.
Strategy Note: For California consumers, combine references to the ARL with the **Consumer Legal Remedies Act (CLRA)** and the **Unfair Competition Law (UCL)** for maximum legal leverage and remedies.
Identifying ARL/ROSCA Violations (Common Fact Patterns)
Your demand letter should clearly identify which of these common “dark patterns” the business used in the sign-up or cancellation process.
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The “Free Trial” Trap
A free or low-cost trial quietly converts to a high-priced monthly or annual plan. The conversion terms and pricing were placed in obscure fine print, behind a link, or not disclosed at all before the initial sign-up.
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Impossible Cancellation (“Roach Motel”)
The sign-up was easy (one click), but cancellation is designed to be impossible. Examples include “phone only” cancellation, excessive hold times (over 30 minutes), broken or misleading cancel links, or mandatory “exit interviews.”
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Undisclosed “Junk Fees” or Price Creep
Extra charges (e.g., “service fees,” “platform maintenance”) are added after the purchase and not clearly disclosed as part of the total recurring cost before the consumer agreed to the renewal.
How to Structure Your Demand Letter
A strong demand letter needs evidence and precise legal citations. Do not threaten; instead, state the facts and cite the specific violations.
Step 1: Identify the Sign-up Flow (Evidence)
What to include: Detail the exact path taken. Attach or reference screenshots of the checkout page, the tiny font/link that contained the “terms,” and the final confirmation screen. This proves the lack of clear and conspicuous disclosure.
Attach: Checkout screenshots, Fine Print/TOS link, Bank statements showing charges.
Step 2: Point to Specific ARL/ROSCA Violations
Cite the law: List the *exact* violations. For example:
- No Clear Disclosure (Bus. & Prof. Code § 17602(a)(1))
- No Affirmative Consent (Bus. & Prof. Code § 17602(a)(2))
- No Post-Transaction Acknowledgment (§ 17602(a)(3))
- No Easy Cancellation (The “click-to-cancel” requirement)
Step 3: State Your Demand and Deadline
What to ask for: Your demand must be reasonable and clear.
- Refunds: All unauthorized charges from the point of the first illegal renewal.
- Cancellation: Immediate and permanent cancellation of the service/subscription.
- Confirmation: Written confirmation (e.g., email) that the account is closed and the refund has been processed.
- Correction: A statement that the company has corrected its unlawful practices (leverage for attorney-led demands).
Reminder: Under the California CLRA, you may be entitled to recover attorneys’ fees, which significantly increases your leverage when represented by counsel.
Templates & Key Clauses
Use these sections to build your own demand letter, selecting the clauses that best fit your specific violation.
Template 1: Low-Dollar Consumer Subscription ($9.99–$49/mo)
Focus on clear ARL/ROSCA violations and a demand for a full refund of all charges after the initial free trial.
[Opening Paragraph & Violation]
"This firm represents [Consumer Name] regarding unauthorized and unlawful charges related to your automatic renewal subscription service. My client enrolled in a '7-Day Free Trial' on [Date] but never consented to the subsequent monthly charge of $[Amount] which began on [Date]. Your sign-up process violates the California Automatic Renewal Law (Bus. & Prof. Code § 17600 et seq.) and the federal ROSCA. Specifically, you failed to clearly and conspicuously disclose the recurring charge terms before purchase, and you failed to obtain my client’s affirmative consent for the renewal."
[Demand]
"We hereby demand an immediate and full refund of all subsequent charges totaling $[Total Unauthorized Charges], which were processed between [Start Date] and [End Date]. We also demand immediate, permanent cancellation of the account. Failure to issue the full refund within fourteen (14) days will compel us to pursue legal action, including claims under the CLRA, where we will seek actual damages, punitive damages, and attorneys' fees."
Template 2: Higher-Dollar Coaching / Info-Product Subscription
Focus on the complexity of the service and the impossibility of cancellation, emphasizing the “roach motel” violation.
[Violation: Impossible Cancellation]
"My client attempted to cancel the $[Higher Amount]/month 'Elite Coaching' subscription on three separate occasions via your website, as is required under California law for services signed up online. Each attempt failed, directing them either to a non-functional link or requiring a mandatory phone call where the hold time exceeded one hour. This calculated obstruction constitutes a clear violation of the ARL's 'easy cancellation' requirement, specifically Bus. & Prof. Code § 17602(a)(4), which was further strengthened by 2024 amendments to ensure a simple, immediate mechanism for online cancellation."
[Demand & Leverage]
"Given the willful nature of the cancellation barrier, this amounts to an unfair business practice under the UCL. We demand a refund of the last six months of charges, totaling $[Total Amount]. In exchange for a full refund and correction of your unlawful cancellation mechanism, we will consider a full release of all civil claims against your company. Please provide a formal response outlining compliance within ten (10) days."
Ready to Fight Back?
Dealing with unlawful auto-renewal charges can be complex. My services can help you gather evidence, draft tailored, high-leverage demand letters, and navigate the recovery process under the ARL and CLRA.
Reach out for a consultation or to discuss full-service engagement.