This bill mandates that all subscription service providers in New Jersey must offer consumers a clear and accessible option to cancel their subscriptions using the same medium through which the service was activated. This includes options such as in-person, telephone, mail, email, or online methods. Additionally, if a subscription service provider allows online cancellations, they must provide a direct link or button on their website that enables consumers to easily terminate the automatic renewal of their subscription. The bill also defines "negative option features" and sets forth specific requirements for subscription service providers, including the prohibition of misrepresentation, the necessity for clear disclosure of material terms, and the requirement to obtain express informed consent before charging consumers.
Furthermore, the bill establishes that it is an unlawful practice for subscription service providers to violate these provisions, with penalties for non-compliance including monetary fines, cease and desist orders, and potential punitive damages. The current law, which only required online cancellation options for health club services, is repealed and replaced by this broader legislation aimed at enhancing consumer rights and simplifying the cancellation process for all subscription services. The bill is designed to protect consumers and ensure they have a straightforward way to manage their subscriptions.
Statutes affected: Introduced: 56:8-42.1