Required in California — additional to federal requirements
California Auto-Renewal Compliance (SB 313)
California's strict automatic renewal law requiring clear disclosure, affirmative consent, easy cancellation, and specific formatting for gym membership auto-renewals.
What this document covers
California has the strictest auto-renewal law in the country, and gyms are a primary enforcement target. SB 313 (2018) strengthened the original ARL to require: (1) clear and conspicuous disclosure of auto-renewal terms before the consumer agrees, (2) affirmative consent to the auto-renewal separate from the general terms, (3) an acknowledgment with auto-renewal terms sent after sign-up, (4) a toll-free number, email, or online mechanism to cancel, and (5) easy online cancellation if the sign-up was online. California also has the Health Studio Services Contract law (Civil Code §1694.5) that limits gym contracts to 3 years and requires specific cancellation rights. Violations trigger automatic unfair competition claims and class actions.
Key sections included
- Auto-renewal disclosure requirements (format, placement, language)
- Affirmative consent mechanism (separate checkbox or signature)
- Post-enrollment acknowledgment with renewal terms
- Cancellation mechanism requirements
- Online cancellation for online sign-ups
- Health Studio Services Contract limitations (3-year max)
- Cancellation rights under Civil Code §1694.5
- 5-day right of rescission for new memberships
- Record retention for consent documentation
- Free trial to paid conversion requirements
Frequently asked questions
Can I require members to cancel in person in California?
No. California law requires you to offer cancellation by toll-free phone, email, or another mechanism that does not require the consumer to interact in person. If the membership was purchased online, you must also allow online cancellation.
What is the 5-day right of rescission?
Under the Health Studio Services Contract law, California gym members have 5 business days to cancel a new membership for a full refund, no questions asked. This right cannot be waived.
Is there a maximum contract length in California?
Yes. Health studio contracts in California cannot exceed 3 years. Monthly memberships with auto-renewal are permitted but must comply with SB 313 disclosure and cancellation requirements.
Document details
- State
- California
- Legal basis
- California Automatic Renewal Law (Bus. & Prof. Code §17600-17606); SB 313 (2018 amendments); Civil Code §1694.5 (Health Studio Services Contract)
- Enforced by
- California Attorney General / Department of Consumer Affairs
- Penalty for absence
- The AG can seek $2,500 per violation under UCL. Class action damages include full refund of all renewal charges plus attorney's fees. Health Studio contract violations: member can cancel and recover all payments plus damages.
- Category
- Operations
Document preview
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California Auto-Renewal Compliance (SB 313)
Legal Reference
California Automatic Renewal Law (Bus. & Prof. Code §17600-17606); SB 313 (2018 amendments); Civil Code §1694.5 (Health Studio Services Contract). Enforced by California Attorney General / Department of Consumer Affairs.
1. Auto-renewal disclosure requirements (format, placement, language)
2. Affirmative consent mechanism (separate checkbox or signature)
3. Post-enrollment acknowledgment with renewal terms
4. Cancellation mechanism requirements
+ 6 more sections...
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