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History
- Referred to consumer protection
- Print number 40a
- Amend and recommit to consumer protection
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Prohibits certain practices by businesses making an automatic renewal or continuous service offer to consumers in the state
Assembly Floor Calendar · Sponsor Jeffrey Dinowitz
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S40A
Title of bill
An act to amend the general business law, in relation to prohibiting certain practices by businesses making an automatic renewal or continuous service offer to consumers in the state
Summary of provisions
Section 1 states the legislative intent.
Section 2 amends the general business law by adding a new article 29-BB.
Section 3 sets the effective date.
Justification
An increasing number of consumers are struggling with misleading offers known as automatic renewals of merchandise and services In a typical scenario, consumers believe they made a onetime purchase or signed up to receive a free product Consumers then continue to receive more deliveries of the merchandise, while incurring additional charges to their credit cards or bank accounts Many consumers fail to notice the agreements - generally hidden in the fine print of an order - that they unknowingly commit to while shopping.
This legislation would require that businesses provide automatic renewal or continuous service offer terms in a clear and conspicuous manner. before the subscription or purchasing agreement is fulfilled, and provide consumers with a straightforward, no- or low-cost means of cancellation. Companies are also prohibited from advertising products as "free" if the item is only distributed as part of an automatic renewal agreement.
New York consumers should not be lured by false and deceptive practices - nor should it be their responsibility to comb through the fine print of a sales offer to determine if they will be trapped in an automatic renewal offer. This legislation will insure that consumers are made fully aware of the terms and conditions of any offer before they provide credit or debit card information.
Legislative history
S.4268 of 2013-2014 (Hoylman): Died in Consumer Protection
Fiscal implications
None to the state
Effective date
This act shall take effect on the ninetieth day after it shall become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.