What's happening
This bill requires magazine publishers to get consumers' clear consent and provide easy cancellation options before charging for automatic renewals.
Why it matters
Puts the burden on publishers to get clear, affirmative consent. from consumers before automatically charging for magazine renewals—this means no more “pre-checked boxes” or hidden agreements.
Requires publishers to prominently disclose renewal terms and cancellation policies. in a way that consumers can keep for their records, aiming to reduce surprise charges and confusion.
Mandates that publishers provide simple and accessible cancellation options. (like a toll-free phone number, email, or other easy methods), making it less frustrating for consumers to end unwanted subscriptions.
Obligates publishers to notify consumers of major changes to renewal terms. and to inform them how to cancel, which protects against unexpected price hikes or new conditions being imposed without the consumer’s awareness.
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Who cares
Headline styles
Require Consent for Auto-Renewals
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 55
1 Co-sponsor
History
- Referred to consumer protection
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.354
- Referred to consumer protection
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
819
2017-2018 Regular Sessions
IN SENATE
January 5, 2017
Introduced by Sen. FUNKE -- 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 requirements for the renewal of magazine subscriptions
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 5 of section 335-a of the general business law is renumbered subdivision 6 and a new subdivision 5 is added to read as follows:
5. (a) It shall be unlawful for any publisher of a magazine sold by subscription or any person, firm, association or corporation engaged in business, the principal purpose of which is to regularly solicit magazine subscription orders for delivery in this state through the mail for profit, to charge a consumer's credit or debit card or the consumer's account with a third party for an automatic renewal or continuous service before both of the following:
(i) the consumer's affirmative consent to the agreement that it will be automatically renewed or continued; and
(ii) clear and conspicuous disclosure of the automatic renewal or continuous service terms, cancelation policy, and how to cancel in a manner that is capable of being retained by the consumer.
(b) A publisher or business entity 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 cancellation.
(c) 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 publisher or business entity shall provide the consumer with a clear and conspicuous notice of the material change and provide information regarding how to cancel.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04251-01-7
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 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 subscriptions.
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.5108 of 2015-2016; Referred to Consumer Protection S.2076C/A.5716C of 2013-2014; 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.