2014 New York Laws
GBS - General Business
Article 26 - (390 - 399-ZZZ) MISCELLANEOUS
396-MM - Unlawful trial offers.

NY Gen Bus L § 396-MM (2014) 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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