A series of new laws went into effect in California on July 1. They range from legislation related to consumer issues to a law seeking to crack down on retail theft. Here’s a look at some of the new laws and what you should know:
Consumer
Assembly bill 2863 is designed to help consumers cancel subscriptions. The new law requires businesses to receive a consumer’s “affirmative consent” to renew or continue a paid subscription. Under existing law, a subscription or purchasing agreement continues until the consumer explicitly cancels the service.
The new law will require businesses to get permission from the customer to extend a subscription when the free trial or contract ends. The legislation applies to subscriptions that start, are amended or extended on or after July 1, 2025.
Short-term rental cleaning fees
AB 2202 targets hidden cleaning fees often imposed by short-term rentals. The new law requires short-term lodging sites, like Airbnb, to disclose any additional fees, charges, or other penalties that will be added to the costs if a renter fails to complete certain cleaning tasks. Renters must also be provided a description of those tasks before reserving their stay. Short-term lodging sites that fail to comply could be fined up to $10,000 per violation.
Crack down on sale of stolen goods
Senate Bill 1144 seeks to help crack down on the sale of stolen goods on online marketplaces. This legislation requires online sellers like eBay and Facebook Marketplace to start collecting information on high-volume third-party sellers.
Starting July 1, virtual markets must implement a stated policy prohibiting the sale of stolen goods on their site. They must also provide a process for consumers to notify the marketplace of the sale of stolen goods. The law goes even further by requiring an online marketplace to alert law enforcement agencies when it knows that a third-party seller is selling or attempting to sell stolen goods to a California resident.
CARE Act Courts
SB 42 builds on the CARE Act, which seeks to ensure an adult with untreated, severe mental health disorders receives court-ordered mental health services by allowing a petitioner, often a caretaker, parent or other family member, to ask a court to create a voluntary CARE agreement or a court-ordered CARE plan. California courts are required to provide petitioners ongoing notice and updates of CARE Act proceedings.
If you have or are experiencing any issues related to any of these new laws or are dealing with any other consumer law concerns, please give 360 Consumer Law™ for a consultation. We are dedicated to protecting consumers and righting wrongs.
