Albany, NY – Consumers are one step closer to having an easier time escaping from predatory promotional deals and notoriously difficult-to-cancel gym memberships with the passage of legislation through the Assembly this week. The legislation (A3173/S1475) was shepherded through the State Senate by State Senator Brad Hoylman in February and then the baton was picked up by Assemblyman Jeffrey Dinowitz in July. It is now waiting to be delivered to the Governor for his approval.

The legislation would require businesses making automatic renewal or continuous service offers to clearly present the terms of the agreement and would prohibit businesses from charging consumers without their affirmative consent.

Furthermore, and of acute interest to people who have experienced the immense difficulty of cancelling a gym membership, the legislation also mandates that consumers are able to terminate an automatic renewal or continuous service agreement online if that is how they originally signed up. Regardless of how the agreement was entered, all businesses would have to provide a cost-effective, timely, and easy-to-use mechanism for cancellation such as a toll-free telephone number or e-mail address.

The bill also includes requirements that any “free” giveaways (goods wares, merchandise, or products sent to a consumer) be considered an unconditional gift with no obligation whatsoever to the consumer, unless the business has obtained the customer’s affirmative consent to enter into an automatic renewal or continuous service agreement.

The Attorney General of New York State would be empowered to seek an injunction for violations and would allow the court to impose civil penalties for violations that were intentional and did not result from a bona fide error.

If signed, New York would join states such as California, Oregon, and Virginia in having comprehensive automatic renewal and continuous service laws. At least 25 states have some form of regulation of this type of contract.

Assemblyman Jeffrey Dinowitz (D - Bronx) said: “As many of us know, it is nearly impossible to escape from some automatic renewal contracts such as gym memberships or predatory bait-and-switch offers. Far too often, consumers are left feeling powerless and taken advantage of, but by establishing the affirmative consent standard in automatic renewal contracts we are restoring power back to the people who worked hard for their money. This legislation makes clear that the consumer has control of how they spend their own money, not the business. Thank you to State Senator Hoylman for his partnership on this legislation, and I urge the Governor to sign this bill into law when it reaches his desk.”

State Senator Brad Hoylman (D - Manhattan) said: “Exercising in the COVID-19 pandemic is difficult enough – New Yorkers shouldn’t have to jump through hoops simply to quit their gym. Too many gyms, subscription boxes and other companies use misleading offers and promotions to lock unwitting customers into long-term contracts that are ridiculously difficult to get out of. I’m grateful to Leader Andrea-Stewart Cousins, Speaker Carl Heastie, and my Assembly partner Jeffrey Dinowitz for supporting this strong consumer protection legislation that will save New Yorkers money.”