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.
S T A T E O F N E W Y O R K
________________________________________________________________________
9131
I N A S S E M B L Y
January 31, 2022
___________
Introduced by M. of A. THIELE -- read once and referred to the Committee
on Judiciary
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-
TION THAT SHALL BE DESCRIBED IN THE RENEWAL OFFER AS REQUIRED BY THIS
SECTION.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06046-01-1
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