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Senate Bill S5468

2017-2018 Legislative Session

Restricts automatic renewal of contracts for electronic and life safety alarm services

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Archive: Last Bill Status - In Senate Committee Rules Committee

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2017-S5468 (ACTIVE) - Details

See Assembly Version of this Bill:
A6191
Current Committee:
Senate Rules
Law Section:
General Business Law
Laws Affected:
Add §69-xx, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2009-2010: A10043
2011-2012: A4338
2013-2014: A2146
2015-2016: S4231, A6496
2019-2020: S8045, A10161
2021-2022: S1881, A9131
2023-2024: S3343, A5671

2017-S5468 (ACTIVE) - Summary

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.

2017-S5468 (ACTIVE) - Sponsor Memo

2017-S5468 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5468
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 30, 2017
                                ___________
 
 Introduced  by  Sen.  RANZENHOFER -- 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  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:
 
   Section 1. The general business law is amended by adding a new section
 69-xx to read as follows:
   § 69-XX. AUTOMATIC RENEWAL OR CONTINUOUS SERVICE OFFER FOR  ELECTRONIC
 AND  LIFE  SAFETY  ALARM SERVICES CONTRACTS UNENFORCEABLE; MECHANISM FOR
 CANCELLATION;  TERMS;  APPLICABILITY  OF  REQUIREMENTS.    1.  AUTOMATIC
 RENEWAL OF A CONTRACT FOR INSTALLING, SERVICING, MONITORING OR MAINTAIN-
 ING  SECURITY  OR  FIRE  ALARM SYSTEMS UNDER THIS ARTICLE SHALL BE UNEN-
 FORCEABLE UNLESS:
   (A) THE AUTOMATIC RENEWAL OFFER  TERMS  OR  CONTINUOUS  SERVICE  OFFER
 TERMS ARE PRESENTED TO THE CONSUMER IN A CLEAR AND CONSPICUOUS MANNER;
   (B)  THE  BUSINESS OR PERSON FURNISHING THE ELECTRONIC AND LIFE SAFETY
 ALARM SERVICE OBTAINS THE CONSUMER'S AFFIRMATIVE CONSENT TO  THE  AGREE-
 MENT  CONTAINING THE AUTOMATIC RENEWAL OFFER TERMS OR CONTINUOUS SERVICE
 OFFER TERMS PRIOR TO CHARGING THE CONSUMER'S CREDIT OR DEBIT CARD OR THE
 CONSUMER'S ACCOUNT WITH A  THIRD  PARTY  FOR  AN  AUTOMATIC  RENEWAL  OR
 CONTINUOUS  SERVICE.  ANY  FORM OF PAYMENT FOR SERVICES INITIATED BY THE
 CONSUMER SHALL BE CONSIDERED AFFIRMATIVE CONSENT UNDER THE PROVISIONS OF
 THIS ARTICLE; AND
   (C) SUCH RENEWAL OR CONTINUOUS SERVICE OFFER PROVIDES  AN  ACKNOWLEDG-
 MENT  OF THE CONTRACT CANCELLATION POLICY, AND 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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