Bill Text: NY A10161 | 2019-2020 | General Assembly | Introduced


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 - Dead) 2020-03-24 - referred to judiciary [A10161 Detail]

Download: New_York-2019-A10161-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          10161

                   IN ASSEMBLY

                                     March 24, 2020
                                       ___________

        Introduced  by  M.  of  A.  SCHIMMINGER -- 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-
    26  tion that shall be described in the renewal offer as  required  by  this
    27  section.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15589-01-0

        A. 10161                            2

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