New York's Automatic Renewal Law: Your Consumer Rights

New York consumers are covered by two overlapping statutes, and it helps to know which one applies to a given contract.

The newer and broader law is the Automatic Renewal Law in General Business Law Article 29-BB. Section 527 sets the definitions and Section 527-a sets the business obligations. It covers most consumer 'automatic renewal' plans (a paid subscription that renews for a new term) and 'continuous service' plans (a subscription that continues until you cancel) for personal, family, or household purposes. The New York Legislature strengthened this law in a budget bill signed May 9, 2025, with the enhanced requirements taking effect November 5, 2025.

The older law, General Obligations Law Section 5-903, applies specifically to contracts for service, maintenance, or repair of real or personal property where the renewal term runs longer than one month. Under Section 5-903, an auto-renewal clause is unenforceable against a customer unless the provider gives written notice, in person or by certified mail, at least 15 days and not more than 30 days before the cancellation deadline. This older law still governs many business contracts that the consumer-focused Article 29-BB does not reach.

Under General Business Law Section 527-a, a business must present the material terms of an automatic renewal or continuous service offer in a 'clear and conspicuous' manner before it requests your consent or your billing information. Section 527 defines 'clear and conspicuous' as text set off by larger type, a contrasting color or style, or symbols that call attention to it, and for audio offers, a volume and cadence that is readily audible and understandable.

The disclosed terms must include a description of the product or service, the amount that will be charged (or the range of charges), the frequency of those charges, the deadline by which you must act to stop the next charge, and the mechanism you can use to cancel. The amended law also requires these terms to appear in visual proximity to the request for your consent.

A business cannot charge you under an auto-renewal or continuous-service agreement without first obtaining your affirmative consent to the agreement containing those terms. This affirmative-consent requirement applies even when the initial offer is at a promotional or introductory rate.

One of the most consumer-friendly features of Section 527-a is the 'easy to cancel' standard. A business must give you the option to cancel at any time through a simple cancellation mechanism that is at least as easy to use as the method you used to sign up, and through the same medium you used to enroll.

The law also addresses businesses that let you sign up in person. If a business allows you to provide consent online or by telephone, it must offer cancellation through those channels too, so you are not forced to return to a physical location to end a subscription you started elsewhere.

You, the consumer, always act as the party who chooses to cancel. The law is designed to remove obstacles that make ending a subscription harder than starting one, but it does not cancel anything on your behalf.

The amended law adds timed-notice obligations. For subscriptions with an initial term of one year or longer and a renewal term of six months or longer, a business must send a renewal reminder that includes cancellation instructions between 15 and 45 days before the cancellation deadline. For introductory or trial periods longer than one month that convert to paid service, Section 527-a requires notice at least 3 days, but not more than 21 days, before the first charge.

Separately, if a business makes a material change to the terms after you enroll, including a price increase, it must give you clear and conspicuous notice at least 5 business days and no more than 30 days before the change takes effect, delivered through the manner you selected. For a price increase specifically, the business must obtain your consent to the higher price before charging it, or allow you to cancel and receive a prorated refund within 14 days of the first increased charge.

These timing windows are the practical heart of the statute, so reviewing the exact language for your situation matters.

Enforcement of the Article 29-BB Automatic Renewal Law rests with the New York Attorney General, who may apply for a court injunction in the name of the People of the State of New York and may seek restitution for affected consumers. The statute does not create a private right of action, meaning it does not, by its own terms, let an individual consumer sue a business directly under this law.

Civil penalties are tiered. An unintentional violation carries a penalty of up to $100 for a single violation and up to $500 for multiple violations arising from one act. A knowing violation carries up to $500 for a single violation and up to $1,000 for multiple violations from one act. A business has an affirmative defense if it shows the violation was unintentional and resulted from a bona fide error despite reasonable procedures to avoid such errors.

The law also contains a notable consumer protection: goods, wares, merchandise, or products a business sends under a continuous-service arrangement without your affirmative consent are deemed an unconditional gift, which you may keep or dispose of with no obligation to the business.

This page summarizes New York's automatic renewal statutes for general educational purposes and is not legal advice. Statutes are amended, and courts interpret them over time, so the details that apply to a particular contract or dispute can differ from this overview. New York City has also floated a proposed municipal 'click to cancel' rule, which as of mid-2026 remains a proposal rather than enacted law.

If you believe a subscription was renewed or a price was raised without the disclosures, consent, or notices New York law requires, you can review the statutory text linked below and consider filing a complaint with the New York Attorney General's office. For guidance about your specific situation, consult a licensed New York attorney.