NYSB04231
By RANZENHOFER | 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.
Status: 01/06/2016 : REFERRED TO CONSUMER PROTECTION
All Versions: Introduced

New York Legislation provided by Legicrawler © 2015


S04231 Summary:

BILL NO    S04231 

SAME AS    SAME AS A06496

SPONSOR    RANZENHOFER

COSPNSR    

MLTSPNSR   

Add S69-xx, Gen Bus L

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.
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S04231 Text:

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

                                         4231

                              2015-2016 Regular Sessions

                                   I N  S E N A T E

                                    March 11, 2015
                                      ___________

       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:

    1    Section 1. The general business law is amended by adding a new section
    2  69-xx to read as follows:
    3    S 69-XX. AUTOMATIC RENEWAL OR CONTINUOUS SERVICE OFFER FOR  ELECTRONIC
    4  AND  LIFE  SAFETY  ALARM SERVICES CONTRACTS UNENFORCEABLE; MECHANISM FOR
    5  CANCELLATION;  TERMS;  APPLICABILITY  OF  REQUIREMENTS.    1.  AUTOMATIC
    6  RENEWAL OF A CONTRACT FOR INSTALLING, SERVICING, MONITORING OR MAINTAIN-
    7  ING  SECURITY  OR  FIRE  ALARM SYSTEMS UNDER THIS ARTICLE SHALL BE UNEN-
    8  FORCEABLE UNLESS:
    9    (A) THE AUTOMATIC RENEWAL OFFER  TERMS  OR  CONTINUOUS  SERVICE  OFFER
   10  TERMS ARE PRESENTED TO THE CONSUMER IN A CLEAR AND CONSPICUOUS MANNER;
   11    (B)  THE  BUSINESS OR PERSON FURNISHING THE ELECTRONIC AND LIFE SAFETY
   12  ALARM SERVICE OBTAINS THE CONSUMER'S AFFIRMATIVE CONSENT TO  THE  AGREE-
   13  MENT  CONTAINING THE AUTOMATIC RENEWAL OFFER TERMS OR CONTINUOUS SERVICE
   14  OFFER TERMS PRIOR TO CHARGING THE CONSUMER'S CREDIT OR DEBIT CARD OR THE
   15  CONSUMER'S ACCOUNT WITH A  THIRD  PARTY  FOR  AN  AUTOMATIC  RENEWAL  OR
   16  CONTINUOUS  SERVICE.  ANY  FORM OF PAYMENT FOR SERVICES INITIATED BY THE
   17  CONSUMER SHALL BE CONSIDERED AFFIRMATIVE CONSENT UNDER THE PROVISIONS OF
   18  THIS ARTICLE; AND
   19    (C) SUCH RENEWAL OR CONTINUOUS SERVICE OFFER PROVIDES  AN  ACKNOWLEDG-
   20  MENT  OF THE CONTRACT CANCELLATION POLICY, AND INFORMATION REGARDING HOW
   21  TO CANCEL IN A MANNER THAT IS CAPABLE OF BEING RETAINED BY THE CONSUMER.
   22    2. A BUSINESS MAKING AUTOMATIC RENEWAL OR  CONTINUOUS  SERVICE  OFFERS
   23  SHALL  PROVIDE  A TOLL-FREE TELEPHONE NUMBER, ELECTRONIC MAIL ADDRESS, A
   24  POSTAL ADDRESS ONLY WHEN THE SELLER  DIRECTLY  BILLS  THE  CONSUMER,  OR
   25  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.
                                                                  LBD09418-01-5
       S. 4231                             2

    1  TION THAT SHALL BE DESCRIBED IN THE RENEWAL OFFER AS  REQUIRED  BY  THIS
    2  SECTION.
    3    3.  IN  THE  CASE  OF  A MATERIAL CHANGE IN THE TERMS OF THE AUTOMATIC
    4  RENEWAL OR CONTINUOUS SERVICE OFFER THAT HAS BEEN ACCEPTED BY A CONSUMER
    5  IN THIS STATE, THE BUSINESS SHALL PROVIDE THE CONSUMER WITH A CLEAR  AND
    6  CONSPICUOUS  NOTICE  OF  THE  MATERIAL  CHANGE  AND  PROVIDE INFORMATION
    7  REGARDING HOW TO CANCEL IN A MANNER THAT IS CAPABLE OF BEING RETAINED BY
    8  THE CONSUMER.
    9    S 2. This act shall take effect on the ninetieth day  after  it  shall
   10  have become a law.
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