New York Passes Comprehensive Automatic Renewal Law To Take Effect In February 2021

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In recent years, several states have passed laws governing automatically renewing contracts. New York is the most recent state to join the ranks, by enacting a sweeping law that regulates automatic renewals and adopts many features of the California automatic renewal law, which is one of the most onerous in the country and has been subject of many class action suits. New York's current law governing automatic renewals only

applies to certain contracts "for service, maintenance, or repair to or for any real or personal property" in which the renewal period is longer than one month. (General Obligations Law §5-903). The new law, which goes into effect on February 9, 2021, applies more broadly to any "paid subscription or purchasing agreement" that is "automatically renewed at the end of definite term for a subsequent term."

Under the new law, businesses must comply with the following key requirements:

Presenting the material terms of the offer in a clear and conspicuous manner and in visual proximity to the request for the consumer's consent. Material terms include the cancellation policy, information about recurring charges, and the length of the renewal term.

Please see full publication below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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