CFC to Governor: Sign SB 340 - Restrict Deceptive Marketing of Product Subscriptions
by Consumer Federation of California
October 5th, 2009
Dear Governor Schwarzenegger:
The Consumer Federation of California urges you to sign into law SB 340 (Yee).
SB 340 would curb the practice of automatically renewing product subscriptions without clear disclosure to, and consent of, the consumer. SB 340 requires any printed, television, radio, internet or telephone advertisement involving an automatic renewal of a product subscription, and any order form in these media to: include a clear explanation that the order will automatically renew unless the customer notifies the business to stop; explain that the customer may cancel the product at any time; and explain the minimum purchase obligation, if any.
SB 340 also requires a product subscription made over a telephone to require a clear customer verbal acknowledgment that the customer is agreeing to an automatic renewal. The bill also prohibits the marketing of any product as “free” if the complimentary product is offered only as an element in an automatic renewal arrangement.
Consumers have complained about responding to “free trial” offers of cosmetic and other products marketed on television by calling a phone number, only to find out later that their credit card is billed monthly for an on-going subscription to the product. SB 340 is an important consumer protection designed to stop deceptive advertising of products marketed as a “free” samples which are nothing more than the first installment of an automatically renewing paid product subscription.
Consumers deserve to know the terms and conditions of any product advertisement, and should have the information they need to terminate an automatically renewing subscription.
Please help restrict the deceptive marketing of product subscriptions by signing SB 340 (Lee).
