BILL NUMBER: S2746

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the general business law, in relation to methods for
cancelling contracts

 
PURPOSE:

To allow consumers to cancel a contract in the same way that they
entered such contract.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 391-u of the general business law
by adding a new section, which reads: Method for contract cancellation.
Unless otherwise authorized by law, rule, or regulation, any business
that contracts with a consumer shall allow such consumer to cancel such
contract using the same method that the business and consumer used to
enter such contract, including but not limited to, in writing or online.
              

For the purposes of this section, "consumer" shall mean a natural person
residing in this state that enters into a contract for personal, family
or household purposes. Section 2 of the bill sets forth the effective
date.

 
JUSTIFICATION:

Currently in New York State many consumers face unnecessarily burdensome
cancellation policies for contracts with businesses. Many businesses
require either certified mail in order to cancel a simple contract or
other tedious cancellation procedures that are often coupled with a
requisite amount of notice. For example, gym memberships are a type of
contract commonly found to be very difficult to cancel. Even though it
is simple and easy to sign up and enter a contract, cancelling can be
challenging. Often consumers are lead to sign up with the click of a
mouse on a website, or a simple in store visit that takes minutes.
However when the time comes that they may wish to cancel their service,
it's often the case that the means they used to sign up can't be used to
terminate service. This bill will create a more simple process to
contract cancellations, allowing consumers to cancel in the same way
that they entered their contract.

 
FISCAL IMPACT ON THE STATE:

None to the State.

 
LEGISLATIVE HISTORY:

2019-20 - A.2328-A - Referred to Consumer Protection/S.2543-A Referred
to Consumer Protection

2017-18 - A.10032 - Referred to Consumer Protection/S.8390 - Referred to
Consumer Protection

 
EFFECTIVE DATE:
This act shall take effect immediately.