S T A T E O F N E W Y O R K
________________________________________________________________________
2146--A
2013-2014 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 9, 2013
___________
Introduced by M. of A. SCHIMMINGER, SKOUFIS -- read once and referred to
the Committee on Judiciary -- recommitted to the Committee on Judici-
ary in accordance with Assembly Rule 3, sec. 2 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the general business law, in relation to electronic
security and life safety alarm services
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The general business law is amended by adding a new section
69-xx to read as follows:
S 69-XX. AUTOMATIC RENEWAL OR CONTINUOUS SERVICE OFFER FOR ELECTRONIC
AND LIFE SAFETY ALARM SERVICES CONTRACTS; UNLAWFUL ACTS; MECHANISM FOR
CANCELLATION; TERMS; APPLICABILITY OF REQUIREMENTS. 1. IT SHALL BE
UNLAWFUL FOR ANY BUSINESS INSTALLING, SERVICING, MONITORING OR MAINTAIN-
ING SECURITY OR FIRE ALARM SYSTEMS UNDER THIS ARTICLE FROM MAKING AN
AUTOMATIC RENEWAL OR CONTINUOUS SERVICE OFFER TO A CONSUMER FOR ELEC-
TRONIC SECURITY AND LIFE SAFETY SYSTEM ALARM MONITORING IN THIS STATE TO
DO ANY OF THE FOLLOWING:
(A) FAIL TO PRESENT THE AUTOMATIC RENEWAL OFFER TERMS OR CONTINUOUS
SERVICE OFFER TERMS IN A CLEAR AND CONSPICUOUS MANNER.
(B) CHARGE THE CONSUMER'S CREDIT OR DEBIT CARD OR THE CONSUMER'S
ACCOUNT WITH A THIRD PARTY FOR AN AUTOMATIC RENEWAL OR CONTINUOUS
SERVICE WITHOUT FIRST OBTAINING THE CONSUMER'S AFFIRMATIVE CONSENT TO
THE AGREEMENT CONTAINING THE AUTOMATIC RENEWAL OFFER TERMS OR CONTINUOUS
SERVICE OFFER TERMS. ANY FORM OF PAYMENT FOR SERVICES INITIATED BY THE
CONSUMER SHALL BE CONSIDERED AFFIRMATIVE CONSENT UNDER THE PROVISIONS OF
THIS ARTICLE.
(C) FAIL TO PROVIDE AN ACKNOWLEDGMENT THAT INCLUDES THE AUTOMATIC
RENEWAL OR CONTINUOUS SERVICE OFFER TERMS, CANCELLATION POLICY, AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05242-02-4
A. 2146--A 2
INFORMATION REGARDING HOW TO CANCEL IN A MANNER THAT IS CAPABLE OF BEING
RETAINED BY THE CONSUMER.
2. A BUSINESS MAKING AUTOMATIC RENEWAL OR CONTINUOUS SERVICE OFFERS
SHALL PROVIDE A TOLL-FREE TELEPHONE NUMBER, ELECTRONIC MAIL ADDRESS, A
POSTAL ADDRESS ONLY WHEN THE SELLER DIRECTLY BILLS THE CONSUMER, OR
ANOTHER COST-EFFECTIVE, TIMELY, AND EASY-TO-USE MECHANISM FOR CANCELLA-
TION THAT SHALL BE DESCRIBED IN THE RENEWAL OFFER AS REQUIRED BY THIS
SECTION.
3. IN THE CASE OF A MATERIAL CHANGE IN THE TERMS OF THE AUTOMATIC
RENEWAL OR CONTINUOUS SERVICE OFFER THAT HAS BEEN ACCEPTED BY A CONSUMER
IN THIS STATE, THE BUSINESS SHALL PROVIDE THE CONSUMER WITH A CLEAR AND
CONSPICUOUS NOTICE OF THE MATERIAL CHANGE AND PROVIDE INFORMATION
REGARDING HOW TO CANCEL IN A MANNER THAT IS CAPABLE OF BEING RETAINED BY
THE CONSUMER.
S 2. This act shall take effect on the ninetieth day after it shall
have become a law.