Bill Text: NY A05671 | 2023-2024 | General Assembly | Introduced

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Bill Title: Restricts automatic renewal of contracts for electronic and life safety alarm services; makes such automatic renewal provisions unenforceable unless: the automatic renewal offer terms or continuous service offer terms are presented to the consumer in a clear and conspicuous manner; the business or person furnishing the electronic and life safety alarm service obtains the consumer's affirmative consent; and 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-03 - referred to judiciary [A05671 Detail]

Download: New_York-2023-A05671-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5671

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                     March 20, 2023
                                       ___________

        Introduced by M. of A. THIELE -- 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  Assem-
        bly, do enact as follows:

     1    Section 1. The general business law is amended by adding a new section
     2  69-xx to read as follows:
     3    §  69-xx. Automatic renewal or continuous service offer for electronic
     4  and life safety alarm services contracts  unenforceable;  mechanism  for
     5  cancellation;  terms;  applicability  of  requirements.    1.  Automatic
     6  renewal of a contract for installing, servicing, monitoring or maintain-
     7  ing security or fire alarm systems under this  article  shall  be  unen-
     8  forceable unless:
     9    (a)  The  automatic  renewal  offer  terms or continuous service offer
    10  terms are presented to the consumer in a clear and conspicuous manner;
    11    (b) The business or person furnishing the electronic and  life  safety
    12  alarm  service  obtains the consumer's affirmative consent to the agree-
    13  ment containing the automatic renewal offer terms or continuous  service
    14  offer terms prior to charging the consumer's credit or debit card or the
    15  consumer's  account  with  a  third  party  for  an automatic renewal or
    16  continuous service. Any form of payment for services  initiated  by  the
    17  consumer shall be considered affirmative consent under the provisions of
    18  this article; and
    19    (c)  Such  renewal or continuous service offer provides an acknowledg-
    20  ment of the contract cancellation policy, and information regarding  how
    21  to cancel in a manner that is capable of being retained by the consumer.
    22    2.  A  business  making automatic renewal or continuous service offers
    23  shall provide a toll-free telephone number, electronic mail  address,  a
    24  postal  address  only  when  the  seller directly bills the consumer, or
    25  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.
                                                                   LBD05684-01-3
        A. 5671                             2

     1  tion  that  shall  be described in the renewal offer as required by this
     2  section.
     3    3.  In  the  case  of  a material change in the terms of the automatic
     4  renewal or continuous service offer that has been accepted by a consumer
     5  in this state, the business shall provide the consumer with a clear  and
     6  conspicuous  notice  of  the  material  change  and  provide information
     7  regarding how to cancel in a manner that is capable of being retained by
     8  the consumer.
     9    § 2. This act shall take effect on the ninetieth day  after  it  shall
    10  have become a law.