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SAN FRANCISCO — A three-judge panel on the U.S. Ninth Circuit Court of Appeals has revived a lawsuit brought by two anonymous plaintiffs against Fenix International Limited, the parent company of OnlyFans.com, over alleged violations of California’s broad law regulating automatically renewing subscription services.
The appellate panel, in an unpublished memorandum issued June 30, reversed a federal district court’s dismissal of the proposed class action and sent the case back for further proceedings. The judges concluded that the lower court incorrectly determined it lacked personal jurisdiction over Fenix under California’s unfair competition law.
California’s unfair competition law was amended following the adoption of the California Automatic Renewal Law (CARL).
The law requires businesses that offer subscriptions, free trials, and recurring digital payments to obtain “explicit affirmative consent” from consumers while also providing “clear disclosures” explaining how customers can easily cancel their subscriptions. The requirements apply to businesses offering digital products and services, including adult websites that rely on recurring subscription models.
The lawsuit was filed by two consumers who challenged the way recurring subscriptions and payments operate on the OnlyFans platform.
According to the district court order issued in April 2025 granting Fenix’s motion to dismiss, the plaintiffs alleged that OnlyFans failed to create a user experience that adequately obtained the “consumer’s affirmative consent to the agreement containing automatic renewal terms.” U.S. District Judge Charles R. Breyer of the Northern District of California dismissed the case after agreeing with Fenix’s argument that, because the company is headquartered in London, the California court did not have jurisdiction.
“We conclude that Plaintiffs established that Fenix expressly aimed its conduct at California,” the three appellate judges wrote. “Because the district court concluded to the contrary, we vacate and remand for further proceedings. […] Fenix’s arguments that it did not aim any conduct at California ignore that it regularly fulfills users’ subscriptions wherever those users access its online content, including California.”
The ruling sends the case back to Judge Breyer’s court for additional proceedings on the jurisdictional issue, allowing the lawsuit to move forward. If the plaintiffs ultimately prevail, the outcome could have broader implications for subscription-based creator platforms that operate under business models similar to OnlyFans.
Should the plaintiffs succeed on their claims under the California Automatic Renewal Law, Fenix and the millions of creators who use OnlyFans could face new compliance obligations governing recurring subscriptions.
Those requirements include implementing more transparent billing and subscription practices while ensuring users provide clear, express consent before automatic renewals take effect.
The law also requires companies to notify users of fee increases, updates to subscription terms, and other material changes to user agreements. In addition, cancellation and renewal processes must be straightforward and easy to use, making it simple for subscribers to end recurring payments when they choose.
