We just learned the New York City Department of Consumer and Worker Protection recently (and apparently stealthily) posted a proposed rule for public comment that will significantly impact subscription marketers selling into The Big Apple.  Comments are due May 8 and the DCWP will hold a virtual hearing on the proposed rule at 11 AM ET that day.

• Disclose terms “clearly and conspicuously” (not defined).
• Provide consumers with a simple cancellation mechanism that is as easy to use as the method used to enroll and in the same medium.
• Provide a simple way to cancel “at any time through all mediums by which the business allows consumers to” agree to the offer or “any price increase.”
  • Note:  This “price increase” language is a bit concerning because the proposed rule does not require sellers to obtain consumer consent to a price increase.  But notably, a recent amendment (see line 40 on page 61) to the New York state auto renewal law does have this consent requirement, unless the seller provides a pro rata refund of the increased price up to 14 days after the price increase is charged.
• Would prohibit imposing unreasonable or unlawful conditions upon, refuse to acknowledge, or obstruct or unreasonably delay a cancellation request or attempt to cancel.
• Save attempts and informing consumers of the effect of cancelling is permitted provided the seller does not engage in any of the above prohibited behavior.
• Must send a renewal notice where an initial paid term of a year or longer is renewed for a paid term of six months or longer. Must be sent between 15-45 days prior to the deadline to cancel to avoid the charge, in a manner selected by the consumer, and include instructions on how to cancel.
• Must provide notice of a material change to the terms, including a price change, between 5-30 days prior to the effective date of the change.
• Where a free gift or trial lasting more than a month is offered that will convert to a paid renewal, must send a notice between 3-21 days prior to the cancellation date.