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History
- Referred to consumer protection
- Referred to consumer protection
Full text
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Sponsor's memo
BILL NUMBER:S5108
Title of bill
An act to amend the general business law, in relation to requirements for the renewal of magazine subscriptions
Purpose
To prohibit magazine publishers or firms directly associated with them from certain practices as they relate to automatic renewal of their subscription.
Summary of specific provisions
Section 1 states that no publisher or associated corporation shall- fail to represent. automatic renewal terms in a clean and conspicuous manner before the agreement is fulfilled. Further they shall not charge the consumer without first obtaining the consumer's affirmative consent to the agreement of renewal. This section also requires acknowledgement. and information on how to cancel, while requiring information be presented on how to contact. the company to cancel. This section also expressly requires that material changes in the terms and conditions shall be provided with a clear and conspicuous notice and information on how to cancel.
Section 2 is the effective date.
Justification
This legislation does nothing to prevent the use of automatic renewal, however it does attempt to get at the misuse of automatic renewal that has previously been settled by a Federal Settlement between magazine publishers and numerous Attorney Generals.
Many time consumers will Purchase a subscription to a magazine at a discounted rate, or at a regular rate and use that time to decide whether or not they enjoy that magazine and wish to continue receiving it at the end of the term. At the end of that time frame it should be the consumers choice to opt to continue receiving that magazine.
However some magazine companies and their affiliates change the terms mid way through the subscription by notifying subscribers that they must opt out of a subscription if they want it to end. For example an individual may subscribe to a magazine under favorable terms for a year subscription for ten dollars, nine months into that subscription a notice is sent to that individual saying if you do not let us know you wish to cancel, we will continue your subscription for another year at the rare of thirty-five dollars.
Prior legislative history
S.2076C; Referred to Consumer Protection
Fiscal implications
None
Effective date
This act will take effect on the ninetieth day.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.