What's happening
This bill prohibits automatic renewal of electronic and life safety alarm service contracts unless clear terms and easy cancellation options are provided to consumers.
Why it matters
Strengthens consumer control over alarm service contracts. by requiring clear, conspicuous disclosure of renewal terms and explicit consumer consent before any automatic renewal charges can be made.
Mandates easy-to-use cancellation methods. , such as a toll-free phone number, email, or postal address (if the company bills directly), making it less burdensome for consumers to end unwanted contracts.
Requires companies to notify customers about significant changes. in renewal terms, ensuring consumers are informed of any material alterations and understand how to cancel if they choose.
Reduces risk of consumers being locked into costly or unwanted services. due to unclear, confusing, or hidden contract terms, making it harder for companies to exploit automatic renewals.
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Who cares
Security and fire alarm companies
The bill would make automatic renewals unenforceable unless providers clearly disclose terms, obtain affirmative consent and supply cancellation information consumers can retain.
Consumers with alarm service contracts
The bill would require an easy-to-use cancellation mechanism and clear notice of material changes to renewal or continuous service terms.
Alarm service billing and payment teams
The bill would require consent before charging cards or third-party accounts for renewals or continuous service, while treating any consumer-initiated payment for services as affirmative consent.
Headline styles
Limit Alarm Contract Renewals
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 61
No co-sponsors yet.
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.936
- Referred to consumer protection
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.998
- 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.
Limit Alarm Contract Renewals
In Assembly Committee · Judiciary · Sponsor Robin Schimminger
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5468
2017-2018 Regular Sessions
IN SENATE
March 30, 2017
Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
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
S. 5468 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.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to automatic renewal of contracts for electronic and life safety alarm services
Purpose of the bill
To make it less likely that alarm contracts and life assist contracts will be inadvertently cancelled due to oversight of customer.
Summary of specific provisions
Adds a new section 69-xx to the General Business Law to provide that automatic renewal provisions will be unlawful unless certain requirements are met.
Justification
Under current law, notice of the automatic extension or renewal of an electronic and life safety alarm service must be given by certified mail. This is both costly for the alarm company and can be inconvenient for the customer if they are not available to receive the certified mail. In addition to the inconvenience if the customer is at work when mail is delivered, the customer may be travelling, hospitalized, or away from home for an extended period. In such event, the result can be the unintentional cancellation of an alarm monitoring/servicing contract, leaving the customer's home or health in jeopardy without his or her knowledge. This bill provides for automatic renewal if certain consumer protections are followed, so that customers who would prefer automatic renewal can be assured of a continuation of their service.
Prior legislative history
2015-2016: A.6496/S.4231; 2013-2014: A.2146 - A/S.2443; 2011-2012: A.4338-A/S.5201; 2009-2010: A.10043/S.7230.
Fiscal implications
None.
Effective date
This act shall take effect on the ninetieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.