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Can I offer a free trial for my product or service in California? What are the requirements?

To offer a free trial for a product or service in California, there are certain requirements that must be met.

Requirements for Offering Free Trials in California

According to the State of California Department of Justice, companies offering free trial products must clearly disclose the terms and conditions of the offer, including any fees that will be charged after the trial period ends. The company must also obtain the consumer’s express consent before charging any fees.

Additionally, under the Telemarketing Sales Rule (TSR), any seller or telemarketer whose offer of a product or service involves a negative option feature must truthfully, clearly, and conspicuously disclose three pieces of information:

  1. the fact that the customer’s account will be charged unless he or she takes an affirmative action — such as canceling — to avoid the charge
  2. the deadline for the customer to take the affirmative action
  3. a simple mechanism for the customer to stop recurring charges.

Conclusion

In summary, companies offering free trials in California must clearly disclose all terms and conditions, obtain express consent before charging any fees, and comply with the Telemarketing Sales Rule if the offer involves a negative option feature.

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Source(s):
Jurisdiction

California