California SaaS Subscription Refund Demand Letters

CLRA | UCL | Automatic Renewal Law (Bus. & Prof. Code 17600) | Consumer Protection

SaaS Subscription Refund Disputes in California
Your Rights as a Consumer: California provides some of the strongest consumer protections in the nation for subscription-based services. If a SaaS company has improperly charged you, failed to honor cancellation requests, materially changed features, or degraded service quality, you have legal remedies under the Consumer Legal Remedies Act (CLRA), Unfair Competition Law (UCL), and California's Automatic Renewal Law.
Common SaaS Subscription Issues
Issue Type Description Primary Legal Basis
Auto-Renewal Disputes Charged for renewal without proper notice or consent Bus. & Prof. Code 17600-17606
Feature Removal/Changes Core features removed or significantly altered after purchase CLRA (Civil Code 1750-1784)
Service Degradation Performance, uptime, or quality substantially reduced Breach of Contract, UCL
Cancellation Issues Difficulty canceling or continued charges after cancellation Bus. & Prof. Code 17602
Bait-and-Switch Advertised features not delivered as promised CLRA, UCL, FAL
Hidden Fees Undisclosed charges added to subscription CLRA, UCL
Why Demand Letters Work: SaaS companies, especially smaller ones, are often quick to resolve disputes when presented with a well-crafted demand letter citing specific California statutes. The cost of defending a CLRA action (which allows for attorney fees) or UCL claim often exceeds the refund amount, making settlement the economically rational choice.
What You Can Recover
  • Full Refund: All subscription payments for the affected period
  • Actual Damages: Out-of-pocket losses caused by the service failure
  • Statutory Damages: Under CLRA, potential for additional damages in class actions
  • Attorney Fees: CLRA allows recovery of attorney fees for prevailing consumers
  • Injunctive Relief: Under UCL, courts can order the company to change practices
CLRA 30-Day Notice Requirement: Before filing a lawsuit under the CLRA, you must provide the company with 30 days written notice and an opportunity to cure the violation. This demand letter satisfies that requirement. If the company fails to provide an appropriate remedy within 30 days, you can pursue legal action including potential statutory damages.
California Legal Framework for SaaS Refunds
1. California Automatic Renewal Law (Bus. & Prof. Code 17600-17606)
The Core Protection: California's automatic renewal law is one of the strictest in the nation. It requires SaaS companies to obtain "affirmative consent" before charging for automatic renewals and mandates clear disclosure of terms.
Requirement What the Law Requires Code Section
Clear Terms Auto-renewal terms must be presented "clearly and conspicuously" before purchase 17602(a)(1)
Affirmative Consent Consumer must affirmatively consent to automatic renewal terms 17602(a)(2)
Acknowledgment Provider must give consumer a copy of auto-renewal terms in a "retainable form" 17602(a)(3)
Cancellation Mechanism Must provide "cost-effective, timely, and easy-to-use" cancellation method 17602(b)
Renewal Reminders For free trials or subscriptions over 1 year, must send reminder before charging 17602(a)(1)
Penalty for Violations: If a company violates the automatic renewal law, the goods or services are deemed to have been provided as an "unconditional gift" - meaning you are entitled to a full refund AND get to keep access to any service already received. (Bus. & Prof. Code 17603)
2. Consumer Legal Remedies Act (CLRA) - Civil Code 1750-1784

The CLRA prohibits unfair and deceptive business practices in consumer transactions. It applies to SaaS subscriptions as "services" under Civil Code 1761(a).

Prohibited Practice How It Applies to SaaS Code Section
Misrepresenting qualities Advertising features that don't work as described 1770(a)(5)
Deceptive pricing Hidden fees, price increases without notice 1770(a)(13)
Advertising unavailable goods Bait-and-switch with features or pricing 1770(a)(9)
False statements about services Misrepresenting uptime, security, or capabilities 1770(a)(4)
Representing goods are of particular standard Claiming enterprise-grade when consumer-grade 1770(a)(7)
CLRA Advantages:
  • Attorney fees recoverable for prevailing consumers
  • Class action eligible for widespread violations
  • Injunctive relief available to stop ongoing practices
  • No arbitration clause can waive public injunction rights
3. Unfair Competition Law (UCL) - Bus. & Prof. Code 17200

California's UCL is a "catch-all" statute that prohibits any business practice that is:

  • Unlawful: Violates any other law (including contract terms)
  • Unfair: Substantially injurious to consumers without offsetting benefit
  • Fraudulent: Likely to deceive a reasonable consumer
UCL Remedy: Under the UCL, you can seek restitution (return of money wrongfully obtained) and injunctive relief. While the UCL does not provide for damages beyond restitution, it has a lower burden of proof and broader applicability than some other statutes.
4. Breach of Contract & Terms of Service

Even without statutory violations, you may have breach of contract claims:

  • Express Contract: The company's Terms of Service, SLA, or subscription agreement creates binding obligations
  • Implied Warranty of Merchantability: Services must meet minimum quality standards
  • Implied Warranty of Fitness: If you relied on the company's recommendations, the service must work for your stated purpose
  • Good Faith and Fair Dealing: Companies cannot frustrate the purpose of the agreement
5. False Advertising Law (FAL) - Bus. & Prof. Code 17500

If the SaaS company made false or misleading advertising claims about their service, the FAL provides additional remedies:

  • Applies to any untrue or misleading statement about services
  • Injunctive relief and restitution available
  • Civil penalties up to $2,500 per violation in government actions
Statute of Limitations:
  • CLRA: 3 years from date of violation (Civil Code 1783)
  • UCL: 4 years from date of violation (Bus. & Prof. Code 17208)
  • Breach of Contract: 4 years for written contracts (CCP 337)
  • Automatic Renewal Law: Generally 4 years under UCL
How to Write an Effective SaaS Refund Demand Letter
Step 1: Document Everything

Before writing your demand letter, gather all evidence:

  • Subscription Records: Original sign-up confirmation, pricing at time of purchase
  • Payment History: Bank/credit card statements showing all charges
  • Communications: Emails, chat logs, support tickets about the issue
  • Screenshots: Original feature descriptions, marketing claims, current state
  • Terms of Service: Copy of TOS at time of purchase (use Wayback Machine if needed)
  • Cancellation Attempts: Evidence of attempts to cancel (emails, screenshots)
  • Service Level Agreement: Any SLA or uptime guarantees
Step 2: Identify Your Legal Claims
Your Situation Primary Legal Claims Key Citations
Charged without proper renewal notice Automatic Renewal Law violation Bus. & Prof. Code 17602, 17603
Features removed after purchase CLRA violation, Breach of Contract Civil Code 1770(a)(5), 1770(a)(16)
Service quality significantly degraded Breach of Contract, UCL Bus. & Prof. Code 17200
Cannot cancel subscription Automatic Renewal Law violation Bus. & Prof. Code 17602(b)
Advertised features don't work CLRA, FAL, UCL Civil Code 1770(a)(4), Bus. & Prof. Code 17500
Hidden fees charged CLRA, UCL Civil Code 1770(a)(13), 1770(a)(14)
Step 3: Calculate Your Demand Amount
  • Direct Refund: All payments for the affected subscription period
  • Consequential Damages: Costs incurred due to service failure (migration, alternatives)
  • Time Spent: Reasonable value of time spent trying to resolve the issue
  • Interest: Prejudgment interest at 10% per annum (Civil Code 3289)
CLRA Notice Requirement: Your demand letter should explicitly notify the company that this constitutes the 30-day notice required under Civil Code 1782(a). State that if they fail to provide an appropriate remedy within 30 days, you will pursue legal action.
Step 4: Essential Letter Components
Component What to Include
Header Your name, address; company's legal name, address; date
Subject Line "DEMAND FOR REFUND - CLRA 30-Day Notice"
Account Details Account email, subscription ID, dates of service
Factual Background What you subscribed to, what was promised, what went wrong
Legal Violations Specific California statutes violated with citations
Demand Amount Total refund sought with itemization
CLRA Notice Explicit statement this is 30-day CLRA notice
Deadline 30 days for response (required by CLRA)
Consequences Legal action, including attorney fees and statutory damages
Step 5: Delivery Methods
  • Certified Mail, Return Receipt: To company's registered agent and headquarters
  • Email: To support, legal, and executive contacts simultaneously
  • Online Portal: Submit through official support channels for documentation
  • Keep Records: Save all receipts, tracking numbers, and confirmations
Finding the Registered Agent: Search the California Secretary of State website (businesssearch.sos.ca.gov) to find the company's registered agent for service of process. Sending to the registered agent ensures proper legal notice.
Credit Card Disputes: While pursuing your demand, also consider filing a dispute with your credit card company under the Fair Credit Billing Act. You have 60 days from the statement date to dispute charges, so act quickly on recent charges.
Create Your Demand Letter
Interactive Generator: Fill in the form below and watch your letter update in real-time. Click on any highlighted text in the preview to edit it directly. All California-specific legal citations are automatically included based on your issue type.
Your Information
SaaS Company Information
Subscription Details
Demand Terms
CLRA requires 30-day notice before filing suit
Live Preview
After generating your letter:
  • Review all highlighted fields and ensure accuracy
  • Send via Certified Mail, Return Receipt Requested to the company's registered agent
  • Also send via email to legal@, support@, and any executive contacts
  • Keep copies of everything - the letter, receipts, and proof of delivery
  • Mark your calendar for 30 days - if no response, you can file suit under CLRA
Enforcement Options and Remedies
1. Credit Card Chargeback
First Line of Defense: If you paid by credit card, you can dispute the charges under the Fair Credit Billing Act. You have 60 days from the statement date showing the charge to initiate a dispute. Contact your credit card company immediately for recent unauthorized charges.
Factor Details
Time Limit 60 days from statement date (but some issuers extend this)
Grounds Services not rendered, unauthorized charge, quality dispute
Process Call your card issuer or submit dispute online
Documentation Needed Your demand letter, cancellation attempts, service issues
Provisional Credit Often issued while dispute is investigated
2. California Small Claims Court

For amounts up to $12,500, small claims court offers a fast, low-cost option:

Factor Details
Maximum claim (individual) $12,500
Maximum claim (business) $6,250
Filing fee $30-$75 depending on amount
Attorney allowed? No (self-representation only)
Typical timeline 30-70 days from filing to hearing
Venue County where company does business in California
Service of Process: For out-of-state SaaS companies, you must serve their registered agent in California. If they have no California presence, you may need to serve their headquarters state's registered agent and file in the county where you made the purchase.
3. CLRA Lawsuit (Superior Court)

After the 30-day notice period expires, you can file a CLRA lawsuit:

  • Actual Damages: All amounts lost due to the violation
  • Punitive Damages: In cases of willful or intentional violations
  • Attorney Fees: Prevailing consumers recover reasonable attorney fees
  • Injunctive Relief: Court can order company to change practices
  • Class Action: If violation affects many consumers, class certification possible
Attorney Fee Incentive: Because CLRA allows fee recovery, attorneys may take your case on contingency for smaller amounts than usual. The threat of paying your attorney fees often motivates settlement.
4. Regulatory Complaints

File complaints with regulatory agencies to create additional pressure:

Agency What They Handle How to File
CA Attorney General Consumer protection, unfair business practices oag.ca.gov/consumers/general
FTC Deceptive practices, subscription traps reportfraud.ftc.gov
Better Business Bureau Business disputes, reputation pressure bbb.org
Consumer Financial Protection Bureau If payment processing is involved consumerfinance.gov/complaint
5. Public Pressure

Sometimes, public visibility motivates faster resolution:

  • Reviews: Post factual, honest reviews on G2, Capterra, TrustPilot
  • Social Media: Tag the company on Twitter/X, LinkedIn with your complaint
  • App Store Reviews: If applicable, review on iOS/Google Play stores
  • Industry Forums: Post in relevant subreddits or Hacker News (stay factual)
Defamation Warning: Stick to verifiable facts in any public statements. Do not exaggerate or make claims you cannot prove. Truth is a defense to defamation, but you must be able to substantiate your statements.
6. Arbitration Considerations

Many SaaS Terms of Service include arbitration clauses. Consider:

  • Small Claims Exception: Most arbitration clauses allow small claims court
  • CLRA Public Injunction: Arbitration cannot waive public injunction rights
  • Class Waiver: Individual arbitration may still be available
  • AAA/JAMS Costs: Filing fees may exceed small claims, but companies often pay
  • Unconscionability: Some arbitration clauses are unenforceable if unconscionable
Attorney Services
Need Help with Your SaaS Subscription Dispute?

I help California consumers recover refunds from SaaS companies that violate consumer protection laws. Whether you are dealing with unauthorized auto-renewals, feature removal, service degradation, or cancellation difficulties, I can help you pursue your legal rights.

How I Can Help
  • Case Evaluation: I review your subscription agreement, communications, and evidence to assess the strength of your claim
  • Demand Letter Drafting: I prepare compelling demand letters citing specific California statutes that maximize settlement leverage
  • CLRA Compliance: I ensure your 30-day notice satisfies all statutory requirements
  • Negotiation: I negotiate directly with the company's legal team to secure your refund
  • Litigation: If negotiation fails, I file suit under CLRA, UCL, or in small claims court
  • Class Actions: For widespread violations, I evaluate class action potential
When to Consult an Attorney
Consider consulting an attorney if:
  • The refund amount exceeds $2,500
  • The company has ignored your demand letter
  • You believe many other consumers are affected (class action potential)
  • The Terms of Service has complex arbitration provisions
  • The company is disputing your claims or threatening counter-action
  • You want to pursue statutory damages beyond just the refund
Schedule a Consultation

Book a call to discuss your SaaS subscription dispute. I will review your situation, explain your legal options, and recommend the most effective strategy to recover your money.

Contact Information

Email: owner@terms.law

Frequently Asked Questions
Yes. Terms of Service do not override California consumer protection laws. If the company violated the Automatic Renewal Law, CLRA, or UCL, you have legal remedies regardless of what the TOS says. Additionally, if the company materially changed the service after you subscribed, they may have breached the contract even on their own terms. Unconscionable contract provisions are also unenforceable under California law.
Generally yes, if you are a California resident who subscribed to the service while in California. California consumer protection laws typically apply to transactions involving California consumers, regardless of where the company is headquartered. However, enforcing a judgment against an out-of-state company may require additional steps. Many large SaaS companies have California registered agents, making service and enforcement easier.
Most arbitration clauses include a small claims court exception, which you can use for claims under $12,500. Additionally, under California law (McGill v. Citibank), arbitration clauses cannot waive your right to seek public injunctive relief under the CLRA or UCL. Some arbitration clauses may also be unenforceable if they are procedurally and substantively unconscionable. An attorney can evaluate whether the specific arbitration clause applies to your claim.
The statute of limitations varies by legal theory: CLRA claims must be filed within 3 years, UCL claims within 4 years, and breach of contract claims within 4 years for written contracts. For credit card chargebacks, you typically have 60 days from the statement date, though some issuers extend this for recurring charges. Act promptly - the sooner you send your demand, the stronger your position.
You can accept a partial settlement if it adequately addresses your concerns, but you are not required to. Under the CLRA 30-day notice requirement, the company's offer must be "appropriate." If they offer credits instead of a cash refund for a service you no longer want, that may not be appropriate. Evaluate whether the offer truly compensates you for your losses before accepting. If you accept a settlement, get it in writing and ensure any release language is reasonable.
Yes, under the CLRA, prevailing consumers are entitled to recover reasonable attorney fees and costs. This is one of the most powerful aspects of the CLRA - it makes it economically viable to pursue claims that might otherwise be too small to justify legal costs. The prospect of paying your attorney fees often motivates companies to settle rather than litigate.
Preserve everything related to your subscription: (1) Original sign-up confirmation and marketing materials, (2) Terms of Service and Privacy Policy at time of purchase (use Wayback Machine), (3) All payment receipts and bank/credit card statements, (4) Screenshots of the service before and after changes, (5) All email communications with the company, (6) Support tickets and chat logs, (7) Cancellation attempts and responses, (8) Any SLA or uptime guarantees. Take screenshots with timestamps and save emails as PDFs.

Related Resources

Explore additional California demand letter guides and legal resources:

Dealing with a SaaS Subscription Dispute?

California law provides strong protections for consumers against auto-renewal traps, feature removal, and service degradation. I can help you recover your refund and hold the company accountable.

Schedule a Consultation

California SaaS Subscription Refund Rights

California consumers have powerful legal protections when SaaS companies engage in unfair subscription practices. The Automatic Renewal Law (Bus. & Prof. Code 17600-17606), Consumer Legal Remedies Act (Civil Code 1750-1784), and Unfair Competition Law (Bus. & Prof. Code 17200) provide multiple avenues for recovering refunds and holding companies accountable.

Key California Statutes for SaaS Disputes

Effective SaaS Refund Strategy