BILL NUMBER: S5615A
SPONSOR: MAY
TITLE OF BILL:
An act to amend the general business law, in relation to automatic
renewals, continuous service offers, and automatic subscription renewals
PURPOSE:
This bill protects consumers from unethical business practices.
SUMMARY OF PROVISIONS:
Section one outlines that sellers give reasonable notice before the end
of a trial period.
Section two outlines that sellers disclose information regarding the
cancellation process, along with notice of upcoming fees.
Section three outlines that sellers shall only offer discount offers and
promotions to consumers under certain conditions.
*The A-print makes technical changes.*
JUSTIFICATION:
Exploitative business practices in this sector often lead to consumers
incurring unwanted fees for subscriptions they no longer use or wish to
maintain. Despite the growing prevalence of subscription services, many
consumers face difficulties in managing these subscriptions due to inad-
equate communication and deceptive practices by sellers. These issues
result in ongoing financial charges for services that consumers have
either forgotten about or found challenging to cancel. Through manipu-
lative practices, subscription services retain large membership bases.
This bill aims to rectify these practices by requiring subscription
service providers to implement clear, effective communication strategies
and simplify the process for managing and canceling subscriptions.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
None to the state.
EFFECTIVE DATE:
This act shall take effect in January 2026.
Statutes affected: S5615: 527-a general business law, 527-a(1) general business law, 527-a(3) general business law
S5615A: 527-a general business law, 527-a(1) general business law, 527-a(3) general business law