June 25, 2025
New York’s New Automatic Renewal Law: How It Compares to California
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Automatic renewal laws are rapidly evolving as states respond to consumer frustration with confusing subscription practices. In May 2025, New York amended its automatic renewal law, bringing it in line with California’s well-established and stringent requirements.
Here’s a close look at how these two states protect consumers, what’s required of businesses, and where the laws intersect and diverge.
Why Automatic Renewal Laws Matter
Subscription-based business models are everywhere, from streaming services to gym memberships1. While convenient, these models have been criticized for trapping consumers in unexpected contracts and making cancellation difficult. Both New York and California have responded with laws designed to ensure transparency, consent, and easy cancellation for consumers.
Key Features of New York’s Automatic Renewal Law
New York’s law (NY GBL § 527-a) requires businesses to:
Disclose Terms Clearly: All automatic renewal terms must be presented in a clear and conspicuous manner before the consumer agrees to the contract.
Obtain Affirmative Consent: Businesses must get explicit consent from consumers before charging for an auto-renewal. Pre-checked boxes for consent are prohibited.
Provide Post-Transaction Acknowledgement: After signup, consumers must receive a confirmation that includes the renewal terms and cancellation instructions, which they can retain.
Offer Easy Cancellation: If a consumer signed up online, they must be able to cancel online as well.
Send Advance Renewal Notices: For contracts of six months or more, businesses must notify consumers 15–45 days before the cancellation deadline, including instructions on how to cancel.
Enforcement and Penalties: Non-compliance can result in fines, restitution, and class-action lawsuits. 2
How New York Compares to California’s Automatic Renewal Law
California’s Automatic Renewal Law (often referred to as CARL) is considered one of the strictest in the country. It requires:
Clear and Conspicuous Disclosures: All renewal terms must be presented before the agreement is finalized.
Affirmative Consent: No charges can be made without the consumer’s express consent, and pre-checked boxes are not allowed.
Post-Transaction Acknowledgement: Consumers must receive a confirmation with all terms and cancellation instructions.
Easy Cancellation: Online cancellation must be available if the subscription was initiated online.
Advance Renewal Notices: For subscriptions of one year or longer, a reminder must be sent 15–45 days before renewal.
Free Trial Notices: If a free trial lasts more than 31 days, a notice must be sent 3–21 days before the paid period begins.
Penalties: Civil penalties can reach $2,500 per violation, and private lawsuits are permitted. 3
Requirement | New York | California |
Clear and conspicuous disclosure of terms | Required before agreement | Required before agreement |
Affirmative consent before charging | Required, no pre-checked boxes | Required, no pre-checked boxes |
Post-transaction acknowledgement | Required, must be retainable | Required, must be retainable |
Easy cancellation (including online) | Required, online if signed up online | Required, online if signed up online |
Advance renewal notice (annual/long-term) | 15–45 days before renewal for 6+ month or 1+ year terms | 15–45 days before renewal for 1+ year terms |
Notice before end of free trial | Not specified | 3–21 days before paid period if free trial >31 days |
Prohibition on pre-checked boxes | Explicitly prohibited | Explicitly prohibited |
Penalties for non-compliance | Fines, restitution, class actions | Fines up to $2,500/violation, private lawsuits |
Exemptions | Certain regulated entities (e.g., utilities, banks) | Certain non-digital signups |
Key Similarities
Transparency - Both states require clear, upfront disclosure of renewal terms
Affirmative Consent - Explicit consumer consent is mandatory, and pre-checked boxes are banned.
Easy Cancellation - Online cancellation is required if the subscription was initiated online.
Advance Notice - Both require advance notice for long-term renewals, though the exact terms differ slightly.
Enforcement - Both laws impose significant penalties for non-compliance, including the possibility of class-action lawsuits.
Key Differences
Scope of Advance Notice: New York’s law applies to contracts of six months or more, while California’s applies to one year or more.
Free Trial Notices: California requires specific notices before the end of long free trials; New York does not.
Exemptions: New York exempts certain regulated entities (like banks and utilities), while California’s exemptions are narrower.
Penalties: California specifies a maximum civil penalty per violation, while New York’s law allows for fines, restitution, and class actions but does not specify a maximum.
What Businesses Should Do
If you offer subscription services in New York or California, you must:
Review and update your subscription terms and disclosures.
Ensure you obtain clear, affirmative consent from consumers.
Provide easy, online cancellation options.
Set up systems to send timely renewal and free trial notices.
Monitor compliance to avoid costly penalties and litigation.
New York’s new automatic renewal law brings it in line with California’s robust consumer protections, but there are important nuances. Businesses operating in either state—or both—should carefully review their practices to ensure compliance and avoid enforcement actions. As more states adopt similar laws, transparent and consumer-friendly subscription practices are quickly becoming the national standard.
For legal guidance on compliance with automatic renewal laws, contact our experienced California Privacy attorneys today.
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This entry was posted on Wednesday, June 25, 2025 and is filed under Resources & Self-Education, Internet Law News.
