NY State Senate Bill 2015-S5108

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to consumer protection
May 01, 2015	referred to consumer protection

2015-S5108 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §335-a, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S2076
2017-2018: S819

2015-S5108 (ACTIVE) - Summary

Relates to automatic renewals of magazine subscriptions; requires certain notice and protections.

2015-S5108 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5108

TITLE OF BILL:  An act to amend the general business law, in relation
to requirements for the renewal of magazine subscriptions

PURPOSE:

To prohibit magazine publishers or firms directly associated with them
from certain practices as they relate to automatic renewal of their
subscription.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 states that no publisher or associated corporation shall-
fail to represent. automatic renewal terms in a clean and conspicuous
manner before the agreement is fulfilled. Further they shall not
charge the consumer without first obtaining the consumer's affirmative
consent to the agreement of renewal. This section also requires
acknowledgement. and information on how to cancel, while requiring
information be presented on how to contact. the company to cancel.
This section also expressly requires that material changes in the
terms and conditions shall be provided with a clear and conspicuous
notice and information on how to cancel.

Section 2 is the effective date.

JUSTIFICATION:

This legislation does nothing to prevent the use of automatic renewal,
however it does attempt to get at the misuse of automatic renewal that
has previously been settled by a Federal Settlement between magazine
publishers and numerous Attorney Generals.

Many time consumers will Purchase a subscription to a magazine at a
discounted rate, or at a regular rate and use that time to decide
whether or not they enjoy that magazine and wish to continue receiving
it at the end of the term. At the end of that time frame it should be
the consumers choice to opt to continue receiving that magazine.

However some magazine companies and their affiliates change the terms
mid way through the subscription by notifying subscribers that they
must opt out of a subscription if they want it to end. For example an
individual may subscribe to a magazine under favorable terms for a
year subscription for ten dollars, nine months into that subscription
a notice is sent to that individual saying if you do not let us know
you wish to cancel, we will continue your subscription for another
year at the rare of thirty-five dollars.

PRIOR LEGISLATIVE HISTORY:

S.2076C; Referred to Consumer Protection

FISCAL IMPLICATIONS:

None

EFFECTIVE DATE:


This act will take effect on the ninetieth day.

2015-S5108 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5108

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               May 1, 2015
                               ___________

Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law, in  relation  to  requirements
  for the renewal of magazine subscriptions

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 5 of section 335-a of the general business  law
is  renumbered subdivision 6 and a new subdivision 5 is added to read as
follows:
  5. (A) IT SHALL BE UNLAWFUL FOR ANY PUBLISHER OF A  MAGAZINE  SOLD  BY
SUBSCRIPTION  OR ANY PERSON, FIRM, ASSOCIATION OR CORPORATION ENGAGED IN
BUSINESS, THE PRINCIPAL PURPOSE OF WHICH IS TO REGULARLY  SOLICIT  MAGA-
ZINE SUBSCRIPTION ORDERS FOR DELIVERY IN THIS STATE THROUGH THE MAIL FOR
PROFIT,  TO  CHARGE  A CONSUMER'S CREDIT OR DEBIT CARD OR THE CONSUMER'S
ACCOUNT WITH A THIRD  PARTY  FOR  AN  AUTOMATIC  RENEWAL  OR  CONTINUOUS
SERVICE BEFORE BOTH OF THE FOLLOWING:
  (I)  THE  CONSUMER'S AFFIRMATIVE CONSENT TO THE AGREEMENT THAT IT WILL
BE AUTOMATICALLY RENEWED OR CONTINUED; AND
  (II) CLEAR AND CONSPICUOUS DISCLOSURE  OF  THE  AUTOMATIC  RENEWAL  OR
CONTINUOUS  SERVICE  TERMS,  CANCELATION  POLICY, AND HOW TO CANCEL IN A
MANNER THAT IS CAPABLE OF BEING RETAINED BY THE CONSUMER.
  (B) A PUBLISHER OR BUSINESS ENTITY MAKING AUTOMATIC RENEWAL OR CONTIN-
UOUS SERVICE OFFERS SHALL PROVIDE A TOLL-FREE  TELEPHONE  NUMBER,  ELEC-
TRONIC  MAIL  ADDRESS,  A  POSTAL  ADDRESS ONLY WHEN THE SELLER DIRECTLY
BILLS THE CONSUMER, OR ANOTHER COST-EFFECTIVE, TIMELY,  AND  EASY-TO-USE
MECHANISM FOR CANCELLATION.
  (C)  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  PUBLISHER  OR  BUSINESS  ENTITY  SHALL  PROVIDE  THE
CONSUMER  WITH A CLEAR AND CONSPICUOUS NOTICE OF THE MATERIAL CHANGE AND
PROVIDE INFORMATION REGARDING HOW TO CANCEL.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD02815-01-5

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Senate Bill S5108

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2015-S5108 (ACTIVE) - Details

2015-S5108 (ACTIVE) - Summary

2015-S5108 (ACTIVE) - Sponsor Memo

2015-S5108 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5108

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Sponsored By

Rich Funke

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2015-S5108 (ACTIVE) - Details

2015-S5108 (ACTIVE) - Summary

2015-S5108 (ACTIVE) - Sponsor Memo

2015-S5108 (ACTIVE) - Bill Text download pdf

Comments