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Consumer rights · Your right

Automatic renewals and subscriptions in New York: consent, reminders and easy cancellation

Updated By The editorial teamNot reviewed by an attorney — based on the official sources below

In short

New York's automatic renewal law (General Business Law §§ 527 and 527-a) says a business can't charge you for a subscription that renews automatically unless it clearly showed the price, how often you'll be charged and how to cancel before you agreed, and got your affirmative consent. It must send a confirmation you can keep, let you cancel as easily as you signed up and through the same channel, and stop obstructing cancellations. Reminders are required before some renewals and before free trials longer than a month turn into paid plans. If a price goes up without your consent, you must be able to cancel within at least 14 days and get a pro-rata refund.

Read on for the details, the exceptions and the sources.

In plain words

Automatic renewal
A subscription for a set term — say a year — that renews by itself for another term unless you cancel.
Continuous service
A plan that keeps charging you, for example monthly, until you cancel.
Affirmative consent
A clear, active yes from you — such as ticking a box or clicking "agree" next to the renewal terms — not silence.
Pro rata
In proportion. A pro-rata refund gives back the share of the price for the time left on the term.

What is it?

Sections 527 and 527-a of the General Business Law set rules for any business making an automatic renewal or continuous service offer to a consumer in New York. Before you consent or give payment details, the business must present the material terms clearly and conspicuously, close to the consent button: what renews, the cost, how often you'll be charged, the deadline to cancel, and how to cancel. Offers with a free gift, free trial or temporary price must also explain when and how the price changes and what you'll pay afterward (§ 527-a(1)(a)).

It may not charge you without your affirmative consent (§ 527-a(1)(b)), and must promptly send a notice you can keep with the terms, cost, frequency, cancellation deadline and how to cancel (§ 527-a(1)(c)).

Who qualifies?

The protection belongs to a "consumer" — an individual who buys or leases goods or services for personal, family or household purposes (§ 527(3)) — who receives an automatic renewal or continuous service offer in New York. Streaming services, apps, software, delivery boxes, memberships and other recurring subscriptions are typical examples.

Exceptions

  • Services provided under a franchise from a local government (such as cable television) (§ 527-a(4)(a)).
  • Businesses regulated by the Department of Financial Services, and banks, credit unions and other licensed financial institutions (§ 527-a(4)(b), (d)).
  • Security alarm system operators (§ 527-a(4)(c)).
  • Sellers and administrators of service contracts as defined in the Insurance Law (§ 527-a(4)(e)).
  • Service, maintenance and repair contracts for property have a separate rule: an automatic renewal clause can't be enforced against you unless the provider sent written notice, personally or by certified mail, 15 to 30 days before your deadline to opt out — except where the renewal period is one month or less (General Obligations Law § 5-903).

How much?

The law mainly controls how a business may charge you, so it doesn't set one refund amount for every case. Two rules do put money back in your pocket. If the price goes up and you didn't consent to the increase, the business must let you cancel at any time within at least 14 days after the higher charge and refund you, pro rata, for the remaining term (§ 527-a(1)(b-1)). And goods sent to you under a subscription you never affirmatively agreed to are an unconditional gift: you can keep or dispose of them and owe nothing, including return shipping (§ 527-a(2)).

Fines for violations — up to $100 for a single violation and $500 for multiple violations from one incident, or $500 and $1,000 if knowing — go to the state in an Attorney General action (§ 527-a(3)).

How is it calculated?

For a pro-rata refund after an unconsented price increase, divide the price you were charged for the term by the length of the term, and multiply by the time left when you cancel. For example, if you were charged $120 for a year and cancel with 11 months left, the refund would be about $110. Your bank or card statement and the business's confirmation notice give you the numbers you need.

What documents do you need?

  • Screenshots of the offer and sign-up page, especially the renewal terms near the consent button.
  • The confirmation e-mail or message the business must send after you sign up (§ 527-a(1)(c)).
  • Bank or card statements showing every charge.
  • Records of each cancellation attempt: dates, screenshots, chat transcripts, the names of people you spoke to.
  • Any renewal reminders or price-change notices — or a note that none arrived.

How do you get it?

  1. Cancel through the same channel you used to sign up

    The business must offer a simple cancellation that is as easy as signing up and uses the same medium (§ 527-a(1)(d)). If you signed up online, you should be able to cancel online.

  2. Use any channel it accepts sign-ups through

    It must let you cancel through every medium it uses to take consent. If you signed up in person, it must also offer cancellation online or by phone (§ 527-a(1)(d-1)).

  3. Decline retention offers if you want

    The business may show you a discount or explain what you'll lose, but it can't hang up on you, give false information about cancelling, or unreasonably delay your request (§ 527-a(1)(e)).

  4. Keep proof and check the next statement

    Save the cancellation confirmation. If you're charged again, contact the business in writing and then your card issuer or bank.

What if they refuse?

File a complaint with the New York Attorney General, which enforces § 527-a and can obtain injunctions, restitution and civil penalties (§ 527-a(3)). If you were charged on a credit card for something you didn't agree to, a written billing-error notice to the card issuer within 60 days of the statement may be worth considering under the federal Fair Credit Billing Act (15 U.S.C. § 1666). Misleading sign-up or cancellation practices may also be deceptive practices under General Business Law § 349, which lets injured consumers sue.

Deadlines

  • Initial term of a year or more that renews for 6 months or more: a reminder with cancellation instructions 15 to 45 days before the cancellation deadline (§ 527-a(1)(f)).
  • Free gift or trial longer than a month: a reminder 3 to 21 days before the cancellation deadline for the first paid period (§ 527-a(1)(h)).
  • Material changes, including price increases: notice 5 business days to 30 days before the change (§ 527-a(1)(g)).
  • Unconsented price increase: you can cancel within at least 14 days after the charge, with a pro-rata refund (§ 527-a(1)(b-1)).
  • Credit card disputes: the issuer must receive your written notice within 60 days after it sent the first statement with the charge (15 U.S.C. § 1666(a)).

Frequently asked questions

My free trial turned into a paid subscription without warning. Is that legal?

For a free trial longer than one month, the business must remind you 3 to 21 days before the deadline to cancel for the first paid period, with instructions on how to cancel (§ 527-a(1)(h)). It also needed your affirmative consent to the renewal terms when you signed up (§ 527-a(1)(b)).

Can a company make me call to cancel when I signed up online?

Under § 527-a(1)(d), the cancellation must be as easy as the sign-up and through the same medium, so if you signed up online you should be able to cancel online.

They raised the price and charged me. Can I get money back?

If you didn't consent to the increase, the business must let you cancel within at least 14 days after the higher charge and refund the remaining term pro rata (§ 527-a(1)(b-1)).

Can I sue a company under the automatic renewal law?

Section 527-a is enforced by the Attorney General. Separately, General Business Law § 349(h) lets a person injured by a deceptive practice sue for actual damages or $50, whichever is greater — worth checking with a lawyer or legal aid if the amounts are significant.

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Official sources

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This page is general information based on the official sources listed, current as of the update date. It is not legal advice and does not replace a review of your own situation; if a case is already in court, a deadline is close, the amount is large, or there are criminal, immigration or family-law consequences, talk to a lawyer or legal aid.