STATEN ISLAND, N.Y. -- A new state law will make it easier for New Yorkers to cancel automatically renewed subscriptions like gym memberships.
On Wednesday, Gov. Andrew Cuomo signed new consumer protection legislation that will require businesses that provide automatic renewal services to offer “a cost-effective, timely, and easy-to-use mechanism for cancellation.”
The legislation, which was first drafted back in 2013, was passed earlier this year and signed by the governor with a renewed sense of urgency after the coronavirus (COVID-19) pandemic left many New Yorkers frustrated with their inability to cancel their gym membership due to onerous cancellation policies that often required in-person cancellation at a time when gyms were forced to close.
“Exercising during this pandemic is hard enough – New Yorkers shouldn’t have to jump through hoops or visit a gym in person simply to quit their membership,” said State Sen. Brad Hoylman, sponsor of the legislation.
“Too many gyms, subscription boxes and other companies use misleading offers and promotions to lock unwitting customers into long-term contracts that are ridiculously difficult to get out of,” he added.
The legislation now requires that these businesses allow cancellations through a toll-free number, email address, postal address or other convenient, cost-effective means.
Additionally, if consumers subscribed to the service online, the business must be willing to allow them to cancel the subscription online, as well.
“This has been an issue for years, but during the pandemic, it poses a unique and severe risk to immunocompromised and elderly New Yorkers who should not have to risk their health to cancel memberships they no longer can use,” Hoylman said.
In addition to mandating cancellation policies that are fair, the legislation requires businesses to present the terms of their subscription-based services more clearly and receive affirmative consent from consumers before they begin charging them.
Currently, businesses often lead consumers to believe that they have made a one-time purchase or signed up for a free item, only for the consumer to be automatically charged for recurring deliveries or services generally hidden in the fine print.
“This legislation would require that businesses provide automatic renewal or continuous service offer terms in a clear and conspicuous manner before the subscription or purchasing agreement is fulfilled, and provide consumers with a straightforward, no- or low-cost means of cancellation,” according to the legislation.
The new law will officially take effect on Feb. 9, 2021.
If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.
Cookie Settings
Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement, (updated 8/1/2024) and acknowledgement of our Privacy Policy, and Your Privacy Choices and Rights (updated 7/1/2024).
© 2024 Advance Local Media LLC. All rights reserved (About Us).
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local.
Community Rules apply to all content you upload or otherwise submit to this site.
YouTube's privacy policy is available here and YouTube's terms of service is available here.
