(TNS) — New state laws going into effect on Tuesday will protect tech customers from shady auto-renewal subscriptions, the sale of stolen goods via online marketplaces and self-cleaning requirements for guests at short-term rentals like Airbnb and Vrbo.
Lawmakers also tweaked one of Gov. Gavin Newsom’s most prized mental health projects, to keep loved ones notified when their mentally-ill kin are traveling through the court system. And some cities in the Bay Area will see minimum wage increases.
Auto-renew protections
Consumer advocates have long argued that companies take advantage of consumers with subscriptions that automatically renew — a $1.5 trillion industry, according to state lawmakers. In 2023, the U.S. Federal Trade Commission accused Amazon of automatically enrolling millions of customers in Amazon Prime — a paid subscription — and then making it hard to cancel. Then, this spring, the agency took rideshare giant Uber to court over what it said were “unfair and deceptive practices” about its auto-renew subscription service.
AB 2863, sponsored by Los Angeles area Assemblymember Pilar Schiavo, a Democrat, requires companies to get explicit approval from customers to auto-renew their subscription. Companies must send customers an annual reminder of their subscription and instructions on how to cancel, and they’ll have to make it easier for customers to cancel.
“As it stands currently, many subscriptions are almost impossible to cancel without undertaking a Kafkaesque process that frustrates consumers to no end, and does so to the direct financial benefit of corporations,” the Consumer Federation of California wrote in a bill analysis last fall.
The federation and district attorneys supported the bill. It was opposed by the California Chamber of Commerce and the California Retailers Association..
Vacation rental cleaning fees
Guests at short-term rentals hosted by Airbnb, Vrbo and the like will also enjoy added protections on July 1.
Existing law, as of July 2024, required those companies to alert customers about all fees and tacked-on charges before they book their stay, or face a fine of up to $10,000. On July 1, it’ll also be illegal for hosts to charge guests for failing to perform cleaning duties without advance notice. Hosts must disclose all fees up-front in advertisements — not just on their profiles.
Those additions are part of AB 2202, sponsored by former Assembly Speaker Anthony Rendon, a Democrat from Los Angeles. Airbnb, Expedia and the Travel Technology Association opposed the bill, while consumer groups supported it.
Hot items in online marketplaces
Also related to online marketplaces, SB 1144 is another attempt to crack down on the sale of stolen goods online. The law forces online sites like Facebook Marketplace to write policies banning the sale of stolen goods on that platform and to notify law enforcement when that happens.
The law already required high-volume online sellers to submit their names, bank account information, phone numbers and email addresses to online marketplace platforms. This new law was spearheaded by former East Bay state Sen. Nancy Skinner, a Democrat. Cities and district attorneys supported the bill, while the Chamber of Progress, a tech trade group, opposed it.
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