New York Automatic Renewal Cancellation Letter

Introduction

Key Things to Know

1. 1

   Article 29-BB of the General Business Law, titled Prohibited Service Offer Practices, is the law a New York automatic renewal cancellation letter invokes when it ends either of two arrangements. Section 527 defines automatic renewal as a paid subscription or purchasing agreement automatically renewed at the end of a definite term for a subsequent term, and continuous service as an agreement that continues until the consumer cancels. A consumer is any individual buying goods, services, money or credit for personal, family or household purposes.

2. 2

   Section 527-a(1)(d) requires the option to cancel at any time using a simple cancellation mechanism that is as easy to use as the one you used to provide consent, and through the same medium. Paragraph d-1 adds cancellation through all mediums by which the business allows a consumer to give affirmative consent. Where consent was obtained in person, the business shall at least offer cancellation through an online mechanism or over a telephone number, plus an in-person method where practical.

3. 3

   Paragraph e bars a business from imposing unreasonable or unlawful conditions on cancellation, refusing to acknowledge it, obstructing it, or unreasonably delaying it. The statute names examples: hanging up on consumers who call to cancel, providing false information about how to cancel, and misrepresenting the consequences, costs or reasons for delay. A business may present a discounted offer, a retention benefit, or information about the effect of cancelling, but not as an obstacle.

4. 4

   Price increases are where the New York text is most detailed. Paragraph g requires clear and conspicuous notice of any material change, including any price increase, at least five business days prior, but no more than thirty days prior, to the date of the change. Paragraph b-1 then conditions a charge at the higher price on either your affirmative consent to it, or an option to cancel anytime within at least fourteen days after the charge with a pro rata refund of the remaining term.

5. 5

   Longer plans carry a renewal reminder. Under paragraph f, where the initial paid term is one year or longer and the plan renews for a paid term of six months or longer, the business must notify you of the renewal charge at least fifteen days before, but not more than forty-five days before, the cancellation deadline. The notice goes out in the manner you selected, including text, email or app notification, and shall include instructions on how to cancel.

6. 6

   Trials and introductory prices have their own rules. Paragraph h applies where the offer includes a free gift or trial for a period of more than a month followed by a charge, and requires notice at least three days before but not more than twenty-one days before the cancellation deadline for the first chargeable period. Paragraph a requires the original offer to explain how and when a temporary price will change, and paragraph c requires a retainable notice after consent listing the costs, frequency, deadline and cancellation mechanisms.

7. 7

   Section 527-a(2) covers shipments. Where a business sends goods, wares, merchandise or products under a continuous service agreement or automatic renewal of a purchase without first obtaining your affirmative consent, they shall for all purposes be deemed an unconditional gift. You may use or dispose of them as you see fit, with no obligation to the business, including bearing the cost of, or responsibility for, shipping them back.

New York Requirements for Automatic Renewal Cancellation Letter

• Whether the Plan Is Automatic Renewal or Continuous Service Under Section 527

  State which arrangement you are on: an automatic renewal, meaning a paid subscription or purchasing agreement renewed at the end of a definite term for a subsequent term, or continuous service that continues until you cancel. Section 527 protects an individual buying for personal, family or household purposes.

• Confirmation the Business Is Not Exempt Under Section 527-a(4)

  Check the five exemptions before citing Article 29-BB: services under a franchise from a political subdivision, entities regulated by the Department of Financial Services, security system alarm operators, licensed banks, credit unions and other financial institutions, and sellers and administrators of service contracts under Insurance Law Section 7902.

• The Medium You Used to Consent and the Medium You Are Cancelling Through

  Paragraph d requires a simple cancellation mechanism as easy to use as the consent mechanism and through the same medium, and paragraph d-1 requires cancellation through all mediums in which consent is accepted, with at least an online mechanism or a telephone number where consent was given in person. Give both mediums and dates.

• Any Obstruction, Hang-Up or Delay, With Dates

  Paragraph e bars unreasonable or unlawful conditions, refusal to acknowledge, obstruction or unreasonable delay, and names hanging up on callers, false information about how to cancel, and misrepresenting consequences, costs or reasons for delay. A retention offer may be presented but not used as a barrier. Note each attempt and its outcome.

• Price Increase Dates, Notice and Consent Under Paragraphs g and b-1

  Paragraph g requires clear and conspicuous notice of a material change, including any price increase, at least five business days and no more than thirty days before it. Paragraph b-1 conditions a charge at the higher price on affirmative consent or on a cancellation option of at least fourteen days after the charge with a pro rata refund of the remaining term. Record the notice date, the charge date and whether you consented.

• Whether the Paragraph f Renewal Reminder Was Owed and Received

  Where the initial paid term is one year or longer and the plan renews for six months or longer, paragraph f requires notice of the renewal charge fifteen to forty-five days before the cancellation deadline, in the manner you selected, with cancellation instructions. Record whether and when it arrived.

• Free Gift or Trial Dates and the Paragraph h Notice

  Where a free gift or trial ran more than a month before a charge, paragraph h requires notice three to twenty-one days before the cancellation deadline for the first chargeable period, with cancellation instructions. Give the trial dates and what you received.

• Unconsented Shipments and the Attorney General Provision, Stated Factually

  Section 527-a(2) deems goods sent under a continuous service agreement or automatic renewal without affirmative consent an unconditional gift, with no obligation to ship them back. Section 527-a(3) provides for an attorney general application for an injunction, restitution and civil penalties. Cite these without predicting an outcome; attorney review is available as an option.