SAN DIEGO (KGTV) — Signing up for a subscription service is usually simple and can be done with a click of a button. But consumers say canceling that service isn't always the case.
"They always have like really good like incentive to get onto their programs. But to get off is generally you gotta jump through a few more hoops," Troy Pane said.
That's the struggle Pane has come across whenever he tries to cancel a subscription. There are many others like him who are in the same boat, as people look to cut costs by cutting the cord on services they don't need.
According to a survey from CNET, consumers will pay an average of $90 per month or $1,080 a year on subscriptions. The survey says subscribers are averaging $17 a month for services they don't use, costing over $200 a year.
Tony Caldwell, a partner at Stall and Wilmer Law Firm, says a lot has been done on the federal and state level to protect consumers from automatic renewals. Many states have created their own safeguards to protect consumers.
In California it's called the California Automatic Renewal Law. It was amended earlier this year.
"California businesses must provide California consumers with a cancellation method that's either the same or substantially similar when that consumer originally signed up," Caldwell said.
Under this law, if a consumer signs up for a plan or service that automatically renews, the business must give the consumer notice of the automatic renewal at least 15 days before it's set to renew. The annual reminder must also list the product or service, the amount of charges, the frequency, and how a consumer can cancel.
If they don't, Caldwell says businesses can face a penalty.
"Specific to folks in California there's a statutory fine of up to $2,500 per violation of the California Automatic Renewal Law. And so again there's a number of consumers who have joined in class actions," Caldwell said.
Caldwell says as we get ready to start the new year, this would be a good time to double check any subscription contracts, making sure you know when these deals expire.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
