What's happening
This bill prohibits charging consumers for unordered goods or services and provides remedies for recipients who are billed improperly.
Why it matters
Strengthens consumer protection. by clarifying that any unordered goods or services received are considered unconditional gifts, meaning recipients have no obligation to pay and can use or dispose of them as they wish—this removes ambiguity and deters deceptive business practices.
Empowers consumers to take legal action. by granting recipients the express right to sue for damages or to stop unlawful billing, including recovery of actual damages or a statutory amount (whichever is greater), plus potential attorney’s fees—making it easier and less risky for individuals to stand up to companies.
Closes loopholes in predatory contracts. by voiding any contract terms that attempt to bind consumers to pay for unordered goods or services simply by failing to respond within a set period, effectively shutting down “negative option” billing schemes.
Requires clear labeling and advance notification. for unsolicited tangible goods (must be marked as gifts) and for intangible goods/services (advance written notice required), increasing transparency and making it harder for companies to confuse or mislead consumers into paying for things they didn’t request.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Ban Unordered Charges
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to consumer affairs and protection
- Referred to consumer affairs and 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.
Ban Unordered Billing
In Senate Committee · Consumer Protection · Sponsor Velmanette Montgomery
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5801
2019-2020 Regular Sessions
IN ASSEMBLY
February 19, 2019
Introduced by M. of A. ORTIZ -- read once and referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to prohibiting any party from charging consumers for unordered or unrequested goods or services; and to repeal paragraph a of subdivision 2 of section 396 of such law relating thereto
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph a of subdivision 2 of section 396 of the general business law is REPEALED and a new paragraph a is added to read as follows:
a. (1) No person, firm, partnership, association or corporation, or agent or employee thereof, shall, in any manner, or by any means, offer for sale, lease, or charge any fee for any tangible or intangible goods, or services which have not been actually ordered or requested by the recipient, either orally or in writing. The receipt of any such unordered goods, or furnishing of such services shall for all purposes be deemed an unconditional gift to the recipient who may use or dispose of the same in any manner he or she sees fit without any obligation on his or her part to the sender.
(2) No person, firm, partnership, association or corporation, or agent or employee thereof, shall bill or otherwise request payment for goods or services not actually ordered or requested by the recipient.
(3) No person, firm, partnership, association or corporation, or agent or employee thereof, shall propose a contract or contract term which provides for a fee or charge for goods or services not actually ordered or requested by the recipient and which purportedly makes the recipient legally bound to make payment for such goods or services upon the recipient's failure to respond within a specified period of time. Any such proposal shall be deemed to be void as against public policy and wholly unenforceable.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03067-01-9
A. 5801 2
(4) Any tangible goods sent which have not been actually ordered or requested by the recipient shall be prominently marked upon the container thereof in bold letters as follows: "THIS IS A GIFT. PAYMENT NOT REQUIRED FOR THIS ITEM."
(5) At least thirty days prior to the sending of any intangible goods or furnishing of any services offered for sale or lease which have not been actually ordered or requested by the recipient, the sender shall mail or deliver a written notice separate from any other document mailed or delivered to the recipient, containing a short, clear and coherent statement, in a size equal to at least ten-point bold type, the name and a short description of the good or service to be sent or furnished, the approximate date such good or service is to be sent or furnished, that the good or service is a gift, and that payment is not required for this good or service.
(6) This paragraph shall not apply to a membership or club arrangement which is regulated by the federal trade commission pursuant to 16 CFR 425 as such section may from time to time be amended, or other contractual plans or arrangements such as continuity plans, subscription arrangements, standing order arrangements, supplements and series arrangements under which the seller periodically ships merchandise to a consumer who has consented in advance to receive such merchandise on a periodic basis.
(7) This paragraph shall not apply to offers for sale or lease of unordered or unrequested services in connection with the renewal or extension of an existing contract, provided such offer was otherwise permitted by law or the terms of such contract and further provided that no unordered or unrequested service is offered in connection with the renewal or extension for a fee or charge in addition to any service or services which were the subject of such contract.
(8) Any recipient who has been injured by reason of any violation of this paragraph may bring an action in his or her own name to enjoin such unlawful act or practice, an action to recover his or her actual damages or fifty dollars, whichever is greater, or both such actions. In any action under this subparagraph, the court may award reasonable attorney's fees to a prevailing plaintiff. Any recipient who has received any bill statement or request for payment with respect to any goods or services deemed to be an unconditional gift under this paragraph shall be deemed to be injured under this subparagraph.
(9) Nothing in this paragraph shall in any way limit the rights or remedies which are otherwise available to a recipient under any other provision of law, including, but not limited to, the uniform commercial code and article twenty-two-A of this chapter.
(10) Waiver of rights by any recipient under this paragraph shall be deemed contrary to public policy and shall be unenforceable and void.
(11) For the purposes of this paragraph: (i) the term "tangible good" shall mean any good sent to the recipient by means of a container; and
(ii) the term "intangible good" shall mean any good which is not a tangible good.
§ 2. This act shall take effect immediately.
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.