What's happening
This bill makes automatic renewal contracts for electronic and life safety alarm services unenforceable unless clear terms, consent, and easy cancellation are provided.
Why it matters
Strengthens consumer protection. by ensuring alarm service contracts with automatic renewals are only enforceable if the terms are clearly disclosed and the consumer affirmatively consents, addressing common complaints about “hidden” renewals.
Empowers consumers with easy cancellation options. by requiring businesses to provide accessible methods (like a toll-free phone number or email) to cancel services, reducing barriers and potential frustration when trying to end a contract.
Mandates transparency on contract changes. , obligating companies to clearly notify customers of any material changes to renewal terms and to provide cancellation information with each change, so consumers aren’t caught off-guard by new or altered conditions.
Applies specifically to critical safety services. (electronic and life safety alarms), where continued service and billing without clear consent could have significant financial and personal safety implications for households and businesses.
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Who cares
Headline styles
Limit Alarm Contract Renewals
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to judiciary
- Referred to judiciary
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.
Limit Alarm Contract Renewals
In Senate Committee · Rules · Sponsor Michael H. Ranzenhofer
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6191
2017-2018 Regular Sessions
IN ASSEMBLY
February 27, 2017
Introduced by M. of A. SCHIMMINGER, SKOUFIS -- read once and referred to the Committee on Judiciary
AN ACT to amend the general business law, in relation to automatic renewal of contracts for electronic and life safety alarm services
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general business law is amended by adding a new section 69-xx to read as follows:
§ 69-xx. Automatic renewal or continuous service offer for electronic and life safety alarm services contracts unenforceable; mechanism for cancellation; terms; applicability of requirements. 1. Automatic renewal of a contract for installing, servicing, monitoring or maintaining security or fire alarm systems under this article shall be unenforceable unless:
(a) The automatic renewal offer terms or continuous service offer terms are presented to the consumer in a clear and conspicuous manner;
(b) The business or person furnishing the electronic and life safety alarm service obtains the consumer's affirmative consent to the agreement containing the automatic renewal offer terms or continuous service offer terms prior to charging the consumer's credit or debit card or the consumer's account with a third party for an automatic renewal or continuous service. Any form of payment for services initiated by the consumer shall be considered affirmative consent under the provisions of this article; and
(c) Such renewal or continuous service offer provides an acknowledgment of the contract cancellation policy, and information regarding how to cancel in a manner that is capable of being retained by the consumer.
2. A business making automatic renewal or continuous service offers shall provide a toll-free telephone number, electronic mail address, a postal address only when the seller directly bills the consumer, or another cost-effective, timely, and easy-to-use mechanism for cancella-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09896-01-7
A. 6191 2
tion that shall be described in the renewal offer as required by this section.
3. In the case of a material change in the terms of the automatic renewal or continuous service offer that has been accepted by a consumer in this state, the business shall provide the consumer with a clear and conspicuous notice of the material change and provide information regarding how to cancel in a manner that is capable of being retained by the consumer.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.