BUFFALO, N.Y. — Governor Cuomo signed a bill Wednesday intended to prevent companies from auto-renewing subscriptions.
Democratic state Senator Brad Hoylman sponsored the bill.
"It won't allow that company to charge your card or account without first obtaining your affirmative consent to the agreement containing the offer terms," Hoylman said.
The legislation also requires there to be a cost-effective, timely and easy to use mechanism for cancelation. Gym memberships fall under this new law.
"As it pertains to gym memberships, many New Yorkers were told they had to go in person to cancel their gym membership during the COVID-19 pandemic right now," Hoylman said.
The legislation actually passed the state Senate in February and the Assembly in July. It takes effect in roughly three months.
"Money is very scarce these days," Hoylman said. "A lot of New Yorkers are struggling to pay their rent, get food on the table. They're unemployed and this is the last thing they should have to worry about, their online subscription or their gym membership."
If there are violations, the attorney general can stop a company from continuing with its practices and impose a fine. There are a number of industries that are exempt like security system alarm operators, banks and credit unions.
"The bill does contain a defense for businesses that can show by a preponderance of the evidence that the violation wasn't intentional and resulted from bona fide error," Hoylman said,
Hoylman says 25 others states already have a similar law on the books.