Requires businesses that allow automatic renewals, continuous service offers, and automatic subscription renewals to provide notice regarding cancelling such renewals, services, or subscriptions.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3928B
SPONSOR: Bores TITLE OF BILL:
An act to amend the general business law, in relation to automatic
renewals, continuous service offers, and automatic subscription renewals
PURPOSE:
This bill protects consumers from unethical business practices.
SUMMARY OF PROVISIONS:
Section one: Establishes a short title
Section two: Mandates sellers give reasonable notice before the end of a
trial period.
Section three: Requires that sellers disclose information regarding the
cancellation process, along with notice of upcoming fees.
Section four: Outlines that sellers shall only offer discount offers and
promotions to consumers under certain conditions. It also allows the
consumer to terminate such offer or service in the same medium used to
accept the offer or service.
Section five: Provides the effective date.
JUSTIFICATION:
Exploitative business practices in this sector often lead to consumers
incurring unwanted fees for subscriptions they no longer use or wish to
maintain. Despite the growing prevalence of subscription services, many
consumers face difficulties in managing these subscriptions due to inad-
equate communication and deceptive practices by sellers. These issues
result in ongoing financial charges for services that consumers have
either forgotten about, found challenging to cancel, or no longer wish
to continue.
Based on California law and Federal regulation, this bill aims to recti-
fy these practices by requiring subscription service providers to imple-
ment clear, effective communication strategies and simplify the process
for managing and canceling subscriptions.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This Act shall take effect on the one hundred eightieth day after it
shall have become a law.
