Section 396-MM. Unlawful trial offers  


Latest version.
  • 1. a. It shall be unlawful for a
      person, partnership, firm, association, corporation or agent or employee
      thereof to provide a free trial offer unless the material terms  of  the
      offer are clearly and conspicuously disclosed. No additional products or
      services  or  enrollment in any membership, for a fee, shall be provided
      until the express consent of the consumer has been obtained.
        * b. At least fifteen, but not more than thirty days before a consumer
      is required to cancel a free trial, in which a credit  card  is  billed,
      the  person,  partnership,  firm,  association,  corporation or agent or
      employee thereof shall send to the consumer the terms of the  offer  and
      the deadline to cancel; provided, however, that where a free trial offer
      ends  in  less than thirty days, the terms of the offer and the deadline
      to cancel shall be sent  at  least  seven  days  before  a  consumer  is
      required  to cancel the free trial. Such notice is not required when the
      free trial is a magazine or  newspaper  subscription  and  at  any  time
      cancellation  occurs  the consumer shall receive a refund for issues not
      mailed; provided, however, that such refund option is disclosed with the
      free trial subscription offer.
        * NB Effective until April 1, 2010
        * b. At least fifteen, but not more than thirty days before a consumer
      is required to cancel a  free  trial,  the  person,  partnership,  firm,
      association,  corporation or agent or employee thereof shall send to the
      consumer the terms of the offer and the deadline  to  cancel;  provided,
      however,  that  where  a free trial offer ends in less than thirty days,
      the terms of the offer and the deadline to cancel shall be sent at least
      seven days before a consumer is required to cancel the free trial.  Such
      notice  is  not  required when the free trial is a magazine or newspaper
      subscription and at any time  cancellation  occurs  the  consumer  shall
      receive  a  refund  for  issues not mailed; provided, however, that such
      refund option is disclosed with the free trial subscription offer.
        * NB Effective April 1, 2010
        2. This section shall not apply to a negative option plan regulated by
      the federal trade commission pursuant to Code  of  Federal  Regulations,
      title  16,  part  425;  and does not apply to other contractual plans or
      arrangements  such  as  continuity  plans,  subscription   arrangements,
      standing  order arrangements, supplements and series arrangements, under
      which the seller provides similar special interest goods or services  to
      a consumer who has consented in advance to receive the goods or services
      on  a  periodic  basis  with no binding commitment period and no minimum
      purchase amount.
        * 3. a. Every violation of this section shall be  deemed  a  deceptive
      act  and  practice  subject to enforcement under article twenty-two-A of
      this chapter. In every case where  the  court  shall  determine  that  a
      violation of this section has occurred, it may impose a civil penalty of
      up to one thousand five hundred dollars for each violation.
        b.  Nothing  in  this section shall be construed to restrict any right
      which any person may have under any other statute or the common law.
        * NB Effective until April 1, 2010
        * 3. This section shall not apply to any  purchase  when  the  person,
      partnership, firm, association, corporation or agent or employee thereof
      does  not debit or charge any consumer account and sends the consumer an
      invoice requesting payment  which  includes  information  about  how  to
      cancel a free trial.
        * NB Effective April 1, 2010
        * 4.  a.  Every  violation of this section shall be deemed a deceptive
      act and practice subject to enforcement under  article  twenty-two-A  of
      this  chapter.  In  every  case  where  the court shall determine that a
    
      violation of this section has occurred, it may impose a civil penalty of
      up to one thousand five hundred dollars for each violation.
        b.  Nothing  in  this section shall be construed to restrict any right
      which any person may have under any other statute or the common law.
        * NB Effective April 1, 2010