S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    778
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend  the  general  business  law,  in  relation  to  certain
   provisions of online dating services

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 394-c of the general business law, as amended by  a
 chapter  of  the laws of 2024 amending the general business law relating
 to online dating services, as proposed in legislative bills  numbers  S.
 1759-B and A. 1057-C, is amended to read as follows:
   §  394-c.  Limitations  on certain contracts involving social referral
 services.  1. As used in this section, the following  terms  shall  have
 the following meanings:
   (a)  "social  referral  service"  shall  include any service for a fee
 providing matching of members, by use of computer or  any  other  means,
 for the purpose of dating or general social contact.
   (b)  "ancillary services" shall refer to goods or services directly or
 indirectly related to or to be provided in connection  with  the  social
 referral  service  process,  including  but  not limited to photography,
 grooming, cosmetology, dating etiquette,  dating  counseling,  or  other
 services.
   (c)  "online  dating  service"  shall mean any social referral service
 where the services are offered primarily online, such as by means of  an
 internet website or a mobile application.
   (d)  "banned member" shall mean the member whose account or profile is
 the subject of a fraud ban.
   (e) "fraud ban" shall mean when  a  member's  account  or  profile  is
 barred  from  an online   dating service because, in the judgment of the
 service, the member WAS FOUND TO USE OR IS SUBSTANTIALLY  LIKELY  TO  BE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02933-01-5
              

 S. 778                              2
 
 USING  A  FALSE  IDENTITY,  OR poses a significant risk of attempting to
 obtain money from other members through fraudulent means.
   (f)  "New  York  member"  shall  mean a person who provides a New York
 residential or billing address or zip code or is in New York when regis-
 tering with the online dating service.
   (g) "personally identifying information" shall mean any representation
 of information that permits the identity of an individual  to  whom  the
 information  applies to be reasonably inferred by either direct or indi-
 rect means which shall include, but shall not be limited to, a  person's
 full  name,  home  address, telephone number, geographic location, email
 address, social security number,  or  a  combination  of  non-personally
 identifying  information  which, when put together, can permit the iden-
 tification of the person.  The first name, last name, and  image  of  an
 individual,  where voluntarily provided to an online dating service with
 the knowledge that  it  will  be  communicated  to  individuals  on  the
 service's  platform other than the individual providing it, shall not be
 considered  personally  identifying  information   when   disclosed   in
 connection with a fraud ban.
   2.  No  contract  for social referral service shall require payment by
 the purchaser of such service of a cash price in excess of one  thousand
 dollars.    Services  to be rendered to the purchaser under the contract
 may extend over a period not to exceed  two  years  from  the  date  the
 contract is entered into.  This subdivision shall not apply to an online
 dating  service  contract where the initial term is one year or less and
 any subsequent terms are one year or less where payment in excess of the
 amount provided under this subdivision is reasonable  in  light  of  the
 service's offerings.
   2-a. No social referral service provider shall require the purchase of
 an  ancillary  service  by a purchaser of a social referral service as a
 condition of entering into a social referral service contract with  such
 provider.
   3.  Every  contract for social referral service which requires payment
 by the purchaser of such service of a total amount in excess of  twenty-
 five  dollars shall provide that the seller of such service must furnish
 to the purchaser a specified certain  number  of  social  referrals  per
 month.    This  subdivision  shall not apply to an online dating service
 where the user can use a  search  functionality  or  is  presented  with
 possible matches.
   4.  Every  contract for social referral service which requires payment
 by the purchaser of such service of a total amount in excess of  twenty-
 five  dollars  shall  provide  that in the event that the seller of such
 service does not furnish to the purchaser the specified  certain  number
 of  social referrals, or in case of an online dating service with search
 functionality or algorithm or location based matching, any social refer-
 ral, for two or more successive months  the  purchaser  shall  have  the
 option to cancel the contract and to receive a refund of all monies paid
 pursuant  to  the  cancelled contract with the exception that the seller
 shall be entitled to retain as a cancellation fee fifteen  per  cent  of
 the  cash  price  or  a  pro  rata  amount  for  the number of referrals
 furnished to the purchaser, whichever is greater.   Every such  contract
 shall  set forth in the contract and in the bill of rights the manner in
 which such services provider determines its cancellation fee pursuant to
 this subdivision.
   5. Every contract for social referral service shall provide  that  the
 seller will not without the prior written consent of the purchaser sell,
 assign  or  otherwise  transfer for business or for any other purpose to
 S. 778                              3
 
 any person any information and material of a personal or private  nature
 acquired  from  a  purchaser  directly  or  indirectly including but not
 limited to answers to tests and  questionnaires,  photographs  or  back-
 ground information.
   5-a.  Every  contract for a social referral service shall provide each
 purchaser with the unilateral right to place [his or her] SUCH  PURCHAS-
 ER'S membership on hold for a period of up to one year; provided, howev-
 er, that the purchaser and social referral service may mutually agree to
 a  longer  period  not to exceed two years.  To exercise the  unilateral
 right provided in this subdivision, a purchaser must notify  the  social
 referral  service  provider  in writing of [his or her] SUCH PURCHASER'S
 intent to do so.
   6. Every contract for social referral service shall  provide  that  at
 the expiration of the contract or at the expiration of services rendered
 by  the  seller,  for  any  reason,  all  information  and material of a
 personal or private nature acquired from a purchaser directly  or  indi-
 rectly including but not limited to answers to tests and questionnaires,
 photographs  or background information shall be promptly returned by the
 seller to the purchaser by certified mail OR DESTROYED and deleted  from
 any  electronic  storage  devices,  WITH CERTIFICATION OF DESTRUCTION OR
 DELETION PROMPTLY PROVIDED TO THE PURCHASER,  UNLESS  THE  RETENTION  OF
 SUCH  INFORMATION  AND  MATERIAL  IS  REQUIRED (A) BY FEDERAL, STATE, OR
 LOCAL LAWS, RULES OR REGULATIONS OR (B) TO COMPLY WITH A JUDICIAL  COURT
 ORDER.
   7.  (a)  Every contract for social referral service shall provide that
 such contract may be cancelled without a cancellation fee  within  three
 business  days  after  the date of physical or electronic receipt by the
 buyer of a copy of the written contract.
   (b) In every social referral service sale, the seller shall furnish to
 the buyer a fully completed copy of the contract pertaining to such sale
 at the time of its execution, which is in the same language, e.g., Span-
 ish, as that principally used in the oral sales presentation  and  which
 shows  the  date of the transaction and contains the name and address of
 the seller, and in the immediate proximity to the space reserved in  the
 contract  for  the signature of the buyer and in not less than ten-point
 bold face type, a statement in substantially the following form:
 YOU, THE BUYER, MAY CANCEL THIS CONTRACT WITHOUT  ANY  CANCELLATION  FEE
 WITHIN  THREE (3) BUSINESS DAYS AFTER THE DATE OF THIS CONTRACT. SEE THE
 ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT.
   (c) Notice of cancellation shall be delivered by certified  or  regis-
 tered  United States mail at the address, or electronically at the email
 address, specified in the contract.
   (d) At the time the buyer signs the social referral service  contract,
 a completed form in duplicate, captioned "NOTICE OF CANCELLATION", which
 shall be attached to the contract and easily detachable, and which shall
 contain in not less than ten-point bold face type the following informa-
 tion and statements in the same language, e.g., Spanish, as that used in
 the contract:
   NOTICE OF CANCELLATION
   (enter date of transaction)
   (Date)
 YOU  MAY CANCEL THIS CONTRACT, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN
 THREE (3) BUSINESS DAYS AFTER THE DATE OF THIS CONTRACT BY MAILING  THIS
 SIGNED  AND  DATED  NOTICE  OF  CANCELLATION  BY CERTIFIED OR REGISTERED
 UNITED STATES MAIL OR EMAIL TO  THE  SELLER  AT  THE  ADDRESS  OR  EMAIL
 ADDRESS  SPECIFIED HEREIN. IF YOU CANCEL, ANY PAYMENTS MADE BY YOU UNDER
 S. 778                              4
 
 THE CONTRACT WILL BE RETURNED WITHIN TEN (10)  BUSINESS  DAYS  FOLLOWING
 RECEIPT BY THE SELLER OF YOUR CANCELLATION NOTICE.  TO CANCEL THIS TRAN-
 SACTION,  MAIL  BY CERTIFIED OR REGISTERED UNITED STATES MAIL OR EMAIL A
 SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE TO:
 (Name of Seller)         NOT LATER THAN _______________
 (Address OR EMAIL ADDRESS of Seller)(Date) ______________
 
   In  case  of  an  online  dating  service, the contract, including the
 statement required by this subdivision,  may  be  furnished  and  signed
 electronically,  provided  such  contract  is provided to the buyer in a
 clear and conspicuous manner.
   (e) In every social referral service sale or renewal, the seller shall
 provide each purchaser with a clear and  conspicuous,  separate  written
 notice,  which  may be a conspicuous and appropriately labeled hyperlink
 for an online dating service, to be known as the "Dating Service Consum-
 er Bill of Rights", which shall contain at least the following  informa-
 tion:
                  Dating Service Consumer Bill of Rights
   1.  No  social  referral service contract shall require the payment by
 you, the purchaser, of an amount greater than one thousand  dollars.  In
 addition, no such contract may extend over a period of time greater than
 two years.
   2. No social referral service contract shall require you, the purchas-
 er,  to  purchase  a  good  or  service  which is directly or indirectly
 related to the social referral service.  These extra services are  known
 as  ancillary services and, while these ancillary service may be offered
 to you, the law prohibits the seller from requiring  that  you  purchase
 this service as a condition of your social referral service contract.
   3.  If  your  social referral service contract costs more than twenty-
 five dollars, the seller must furnish a minimum number of referrals  per
 month to you, UNLESS YOUR SOCIAL REFERRAL SERVICE PROVIDES THE USER WITH
 A  SEARCH  FUNCTIONALITY OR IS PRESENTED WITH POSSIBLE MATCHES.  If this
 minimum amount is not furnished to you for two successive months, OR  IN
 THE  CASE  OF AN ONLINE DATING SERVICE WITH SEARCH FUNTIONALITY OR ALGO-
 RITHM OR LOCATION BASED MATCHING, ANY  SOCIAL  REFERRAL,  you  have  the
 option of cancelling the contract and receiving a full refund of all the
 money  you  paid,  less  a  cancellation  fee which cannot exceed either
 fifteen percent of the cash price or a pro rata amount for the number of
 referrals furnished to you.
   4. [Your] UNLESS YOUR SOCIAL REFERRAL SERVICE CONTRACT IS  FOR  ONLINE
 DATING  SERVICES  THAT  ARE  GENERALLY AVAILABLE TO USERS ON A REGIONAL,
 NATIONAL OR GLOBAL BASIS, YOUR social  referral  service  contract  must
 specify  the distance which you, the purchaser, are willing to travel to
 meet any social referral. No social referrals shall be  furnished  where
 you and the referral live at a distance greater than the distance speci-
 fied in the contract.
   5.  The  provider must have an established policy to address the situ-
 ation of your moving outside the area it services. This policy  must  be
 explained in your contract.
   6.  If  any  provision  of  the  social  referral  service contract is
 violated, you have the right to bring a court action against the provid-
 er which has violated the contract.
   8. Every contract  for  social  referral  service  shall  specify  the
 distance  which the buyer is willing to travel to meet any social refer-
 ral. No social referral shall be furnished by the seller to the buyer if
 either the buyer or the social referral reside  at  a  distance  further
 S. 778                              5
 
 than  the  distance specified in either the buyer's or social referral's
 contracts.  This subdivision shall not apply to online  dating  services
 that are generally available to users on a regional, national, or global
 basis.
   8-a.  Every social referral service provider must establish and admin-
 ister a fair and reasonable policy for the situation in which a purchas-
 er moves to permanently reside at a location outside the service area of
 such provider.  This policy must be set  forth  in  every  contract  for
 social referral service.
   9. (a) Whenever there shall be a violation of this section an applica-
 tion  may  be  made by the attorney general in the name of the people of
 the state of New York to a court or justice  having  jurisdiction  by  a
 special  proceeding  to  issue  an  injunction,  and  upon notice to the
 defendant of not less than five days, to enjoin and restrain the contin-
 uance of such violation; and if it shall appear to the  satisfaction  of
 the  court  or  justice  that  the defendant has, in fact, violated this
 section, an injunction may be issued by the court or justice,  enjoining
 and restraining any further violations, without requiring proof that any
 person  has,  in  fact,  been  injured  or  damaged thereby. In any such
 proceeding, the court may make allowances to  the  attorney  general  as
 provided  in  paragraph  six  of subdivision (a) of section eighty-three
 hundred three of the civil practice law and rules, and  direct  restitu-
 tion.  Whenever  the  court  shall  determine  that  a violation of this
 section has occurred, the court may impose a civil penalty of  not  more
 than  one  thousand  dollars for each violation.  In connection with any
 such proposed application the attorney general  is  authorized  to  take
 proof  and  make  a  determination  of  the  relevant facts and to issue
 subpoenas in accordance with the  civil  practice  law  and  rules,  and
 direct restitution.
   (b)  Any  person who has been injured by reason of a violation of this
 section may bring an action in [his or her] SUCH PERSON'S  own  name  to
 enjoin  such  violation, an action to recover [his or her] SUCH PERSON'S
 actual damages or fifty dollars  whichever  is  greater,  or  both  such
 actions.
   (c)  In cities having a population over one million, the provisions of
 this section may be enforced concurrently with the attorney  general  by
 the  director of a local or municipal consumer affairs office. In cities
 having a population over one  million,  such  local  entities  may  also
 require social referral services to be licensed. Such licensing require-
 ments  may  be  promulgated  as  are  reasonably necessary to effectuate
 licensure, provided,  however,  that  such  localities  may  not  impose
 substantive  requirements that are inconsistent with or more restrictive
 than those set forth in this section. Any fee for such license  may  not
 exceed three hundred forty dollars for a two year period.
   10. (a) An online dating service shall disclose to all of its New York
 members  known  to  have previously received and responded to an on-site
 message from a banned member:
   (1) the user name, identification number, or other profile  identifier
 of the banned member;
   (2)  the  fact that the banned member was banned because, in the judg-
 ment of the online   dating service, the banned  member  may  have  been
 using  a  false identity or may pose a significant risk of attempting to
 obtain money from other members through fraudulent means;
   (3) that a member should never send money or personal financial infor-
 mation to another member; and
 S. 778                              6
 
   (4) a hyperlink to online information that clearly  and  conspicuously
 addresses  the subject of how to avoid being defrauded by another member
 of an online dating service.
   (b)  The  notification  required  by paragraph (a) of this subdivision
 shall be:
   (1) clear and conspicuous;
   (2) by e-mail, text message, or other appropriate  means  of  communi-
 cation; and
   (3)  sent  within twenty-four hours after the fraud ban, or at a later
 time if the service has determined, based on an  analysis  of  effective
 messaging,  that  a  different  time  is more effective, but in no event
 later than three days after the fraud ban.
   (c) An online dating service shall not be liable to any member who has
 an account or profile that is the subject of a fraud ban, for disclosing
 to any member that it has banned the member, the user  name  or  account
 identifier  of  the  banned member, or the reasons for the online dating
 service's decision to ban such member in accordance with  this  subdivi-
 sion where such disclosure does not contain their personally identifying
 information.
   (d) This section does not diminish or adversely affect the protections
 for  online  dating  services  that  are  afforded in 47 USC 230, or any
 rights or protections otherwise provided to a consumer in law.
   § 2. This act shall take effect on the  same  date  and  in  the  same
 manner  as  a  chapter of the laws of 2024 amending the general business
 law relating to online dating services, as proposed in legislative bills
 numbers S. 1759-B and A. 1057-C, takes effect.