NY State Senate Bill 2017-S819

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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to consumer protection
Jun 21, 2017	committed to rules
Mar 13, 2017	advanced to third reading
Mar 08, 2017	2nd report cal.
Mar 07, 2017	1st report cal.354
Jan 05, 2017	referred to consumer protection

Votes

- Mar 7, 2017 - Consumer Protection Committee Vote
  S819
  
  11
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Consumer Protection Committee Vote: Mar 7, 2017
      
      aye (11)
      
      Amedore
      
      Boyle
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Funke
      
      Hamilton
      
      Helming
      
      Latimer
      
      Robach
      
      Serrano

co-Sponsors

2017-S819 (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
2015-2016: S5108

2017-S819 (ACTIVE) - Summary

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

2017-S819 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S819

 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
subscriptions.

 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.5108 of 2015-2016; Referred to Consumer Protection
S.2076C/A.5716C of 2013-2014; Referred to Consumer Protection

 FISCAL IMPLICATIONS :

None

 EFFECTIVE DATE :
This act will take effect on the ninetieth day.

2017-S819 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    819
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2017
                                ___________
 
 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.
   § 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.
                                                            LBD04251-01-7

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Senate Bill S819

Sponsored By

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

Mar 7, 2017 - Consumer Protection Committee Vote

Consumer Protection Committee Vote: Mar 7, 2017

co-Sponsors

2017-S819 (ACTIVE) - Details

2017-S819 (ACTIVE) - Summary

2017-S819 (ACTIVE) - Sponsor Memo

2017-S819 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S819

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Sponsored By

Rich Funke

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

co-Sponsors

John E. Brooks

2017-S819 (ACTIVE) - Details

2017-S819 (ACTIVE) - Summary

2017-S819 (ACTIVE) - Sponsor Memo

2017-S819 (ACTIVE) - Bill Text download pdf

Comments