Louisiana Click-to-Cancel Act for restaurant memberships

A restaurant that sells a monthly coffee subscription, a wine club or a paid dining membership has an automatic renewal contract, and Louisiana has just written rules for those. Act 830 of the 2026 session, called the Click-to-Cancel Act, takes effect on January 1, 2027. This guide, checked in November 2026, explains what the Act requires, how its size test works for a small restaurant and what to do now if you sell anything that renews on its own. It is general information, not legal advice. Read the Act and ask a lawyer about your own program.

What is an automatic renewal contract?

The Act defines it as a plan in which a paid subscription or purchasing agreement for goods or services is automatically renewed at the end of a definite term for a subsequent term, or on a continuous or recurring basis. A monthly box of baked goods, a quarterly bottle club, a paid loyalty tier that renews each year and a weekly meal plan that charges a card every Monday all fit. A single purchase does not. Neither does a gift card.

What must you tell a customer before they sign up?

You must present the offer terms clearly and conspicuously, before the purchase is completed and close to the request for acceptance. The terms are that the contract will renew automatically, the cancellation policy, any recurring charges, the length of the renewal term and any minimum purchase obligation. The Act's own wording says a renewal term should not exceed one year unless the customer gives express written consent to a longer one. If you offer a free or discounted trial, explain the price that will be charged after it ends.

What consent and records does the Act require?

You may not charge a customer's payment method for an automatic renewal without first getting their affirmative consent to an agreement that clearly shows the terms. After the sign-up you must send an acknowledgment that includes the terms, the cancellation policy and cancellation instructions, in a form the customer can keep. You must also keep reasonable business records that show the customer's consent for at least one year from the date the contract was formed. A checkbox the customer ticks, stored with a time stamp, is a simple way to meet that.

How must cancellation work?

The Act requires a cost-effective, timely and easy-to-use way to cancel, which must not be unreasonably burdensome or designed to deter cancellation. It must allow cancellation online, by email, by telephone or by another commonly used method. If a customer can sign up with two taps on a phone, they should not have to write a letter to leave. When there is a material change in the terms, you must send a clear notice of the change and how to cancel.

When is a notice before renewal required?

A seller must give notice before renewal if the renewal term is twelve months or longer, if there is a material change in the terms such as a price increase, or if a trial converts to a paid subscription. The notice must go out at least three days before the renewal or conversion and must state the renewal terms, the amount to be charged and how to cancel. An annual club that charges each January needs a reminder before it charges.

Does the Act apply to a small restaurant?

Probably not to a typical independent, but read the text. Section 51:3305 says the chapter does not apply to a person with fewer than fifty employees or with annual gross revenue of less than five million dollars, and it counts subsidiaries, parent companies and affiliates together. A separate provision exempts such a person from the pre-renewal notice rule if it follows the disclosure, consent and cancellation rules. The two tests are joined by the word or, so a restaurant under either threshold may be outside the Act. Because the wording of the exemptions differs between sections, ask a lawyer how it applies to you, particularly if you belong to a group.

What are the penalties?

A person who violates the Act is subject to a civil penalty, set by the attorney general, of no more than $500 per violation. Before any enforcement action or penalty, the person must be given written notice of the alleged violation and has 30 days to cure it. If the violation is cured in that time and the cure is confirmed in writing, no civil penalty is imposed, though that does not apply to willful or repeated violations. A business that makes a good faith effort to comply and keeps reasonable procedures is not liable for technical or inadvertent violations that cause no material harm.

What should you do next?

List every product you sell that renews on its own. For each one, check that the sign-up page shows the terms near the button, that you keep a record of consent, that the confirmation email explains how to cancel and that canceling is as easy as joining. Even if the size exemption protects you, these steps are good practice and match what customers expect. Then read how gift cards and card fees are treated in Louisiana, since they sit in the same consumer protection chapter.

More guides for your business:

• Louisiana gift card law for restaurants
• Louisiana debit card surcharge ban (Act 751) for restaurants
• Louisiana sales tax on restaurant meals: state, parish and New Orleans

More in the US guides for food businesses.