California Gov. Gavin Newsom signed AB 2863 into law, imposing new cancellation and consumer consent requirements for subscription-based businesses, including for a new category of “free-to-pay conversions.” It also expands businesses’ liability for marketing misrepresentations beyond the subscription service itself to the underlying good or service, creating litigation risks for businesses, as well as for third-party marketers of goods or services they don’t own or control. AB 2863 does not going effect until July 1, 2025.

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