What's happening
The bill requires businesses to allow consumers to cancel contracts using the same method they used to enter them, such as online or in writing.
Why it matters
Empowers consumers by making cancellation as easy as sign-up. Businesses would no longer be able to require more complicated or inconvenient cancellation processes than those used to initiate a contract, reducing “friction” that traps consumers in unwanted agreements.
Reduces predatory or deceptive business practices. Some companies intentionally make cancellation difficult (e.g., requiring a phone call or mailed letter for online contracts). This law would close those loopholes, helping prevent consumer frustration and financial loss.
Applies broadly to most personal contracts. The law covers any contract for personal, family, or household purposes by New York residents, so it could impact everything from gym memberships and streaming services to subscription boxes and insurance policies.
Promotes transparency and fairness. By standardizing cancellation methods, the legislation would likely increase trust in consumer markets and encourage businesses to improve their customer service practices.
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Who cares
New York consumers
Residents entering contracts for personal, family or household purposes would be able to cancel using the same method they used to sign up, unless otherwise authorized by law, rule or regulation.
Businesses offering online contracts
Businesses contracting online with covered consumers would have to allow online cancellation, subject to the bill’s exception for other legal authorization.
Businesses using written contracts
Businesses entering written contracts with covered consumers would have to permit cancellation in writing, subject to the same exception.
Headline styles
Let Contracts Be Canceled Easily
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to consumer protection
- Print number 2543a
- Amend and recommit to consumer protection
- 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.
Make Cancelling Contracts Easier
In Assembly Committee · Consumer Affairs And Protection · Sponsor Jeffrey Dinowitz
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2543--A
2019-2020 Regular Sessions
IN SENATE
January 28, 2019
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the general business law, in relation to methods for cancelling contracts
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 391-u to read as follows:
§ 391-u. Method for contract cancellation. Unless otherwise authorized by law, rule, or regulation, any business that contracts with a consumer shall allow such consumer to cancel such contract using the same method that the business and consumer used to enter such contract, including but not limited to, in writing or online. For the purposes of this section, "consumer" shall mean a natural person residing in this state that enters into a contract for personal, family or household purposes.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01334-03-9
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 methods for cancelling contracts
Purpose
To allow consumers to cancel a contract in the same way that they entered such contract.
Summary of provisions
Section 1 of the bill amends section 391-u of the general business law by adding a new section, which reads: Method for contract cancellation. Unless otherwise authorized by law, rule, or regulation, any business that contracts with a consumer shall allow such consumer to cancel such contract using the same method that the business and consumer used to enter such contract, including but not limited to, in writing or online. For the purposes of this section, "consumer" shall mean a natural person residing in this state that enters into a contract for personal, family or household purposes.
Section 2 of the bill sets forth the effective date.
Justification
Currently in New York State many consumers face unnecessarily burdensome cancellation policies for contracts with businesses. Many businesses require either certified mail in order to cancel a simple contract or other tedious cancellation procedures that are often coupled with a requisite amount of notice.
For example, gym memberships are a type of contract commonly found to be very difficult to cancel. Even though it is simple and easy to sign up and enter a contract, cancelling can be challenging. Often consumers are lead to sign up with the click of a mouse on a website, or a simple in store visit that takes minutes. However when the time comes that they may wish to cancel their service, it's often the case that the means they used to sign up can't be used to terminate service.
This bill will create a more simple process to contract cancellations, allowing consumers to cancel in the same way that they entered their contract.
Fiscal impact on the state
None to the State.
Legislative history
2017-18 - A.10032 - Referred to Consumer Protection/S.8390 - Referred to Consumer Protection
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.