2013 New York Consolidated Laws
GBS - General Business
Article 26 - (390 - 399-ZZZ) MISCELLANEOUS
396-MM - Unlawful trial offers.


NY Gen Bus L § 396-MM (2012) What's This?
 
    §  396-mm.  Unlawful  trial  offers.  1. a. It shall be unlawful for a
  person, partnership, firm, association, corporation or agent or employee
  thereof to provide a free trial offer unless the material terms  of  the
  offer are clearly and conspicuously disclosed. No additional products or
  services  or  enrollment in any membership, for a fee, shall be provided
  until the express consent of the consumer has been obtained.
    b. At least fifteen, but not more than thirty days before  a  consumer
  is  required  to  cancel  a  free  trial, the person, partnership, firm,
  association, corporation or agent or employee thereof shall send to  the
  consumer  the  terms  of the offer and the deadline to cancel; provided,
  however, that where a free trial offer ends in less  than  thirty  days,
  the terms of the offer and the deadline to cancel shall be sent at least
  seven  days before a consumer is required to cancel the free trial. Such
  notice is not required when the free trial is a  magazine  or  newspaper
  subscription  and  at  any  time  cancellation occurs the consumer shall
  receive a refund for issues not mailed;  provided,  however,  that  such
  refund option is disclosed with the free trial subscription offer.
    2. This section shall not apply to a negative option plan regulated by
  the  federal  trade  commission pursuant to Code of Federal Regulations,
  title 16, part 425; and does not apply to  other  contractual  plans  or
  arrangements   such  as  continuity  plans,  subscription  arrangements,
  standing order arrangements, supplements and series arrangements,  under
  which  the seller provides similar special interest goods or services to
  a consumer who has consented in advance to receive the goods or services
  on a periodic basis with no binding commitment  period  and  no  minimum
  purchase amount.
    3.  This  section  shall  not  apply  to any purchase when the person,
  partnership, firm, association, corporation or agent or employee thereof
  does not debit or charge any consumer account and sends the consumer  an
  invoice  requesting  payment  which  includes  information  about how to
  cancel a free trial.
    4. a. Every violation of this section shall be deemed a deceptive  act
  and  practice  subject to enforcement under article twenty-two-A of this
  chapter. In every case where the court shall determine that a  violation
  of this section has occurred, it may impose a civil penalty of up to one
  thousand five hundred dollars for each violation.
    b.  Nothing  in  this section shall be construed to restrict any right
  which any person may have under any other statute or the common law.

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