Sponsored by:
Assemblyman KENYATTA STEWART
District 35 (Bergen and Passaic)
Assemblyman WILLIAM B. SAMPSON, IV
District 31 (Hudson)
Assemblyman AL ABDELAZIZ
District 35 (Bergen and Passaic)
Co-Sponsored by:
Assemblyman Scharfenberger
SYNOPSIS
Requires subscription service provider to delete consumer payment information after cancellation of subscription service.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the cancellation of subscription services and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A subscription service provider shall, upon receipt of a request by a consumer to cancel or terminate the automatic renewal of a subscription service, delete the consumer’s method of payment and any other personal financial information associated with the automatic renewal within 30 days of receipt of a request.
b. It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for a subscription service provider to violate the provisions of this section.
c. For the purposes of this section:
“Automatic renewal” means a plan or arrangement in which a paid subscription service is automatically renewed at the end of a definite term for a subsequent term.
“Subscription service” means an offer or agreement for any service provided on a subscription basis in exchange for a recurring payment, including, but not limited to, a weekly, monthly, or annual payment charged to and made by a consumer.
“Subscription service provider” means a person who sells a subscription service to a consumer.
2. This act shall take effect immediately.
STATEMENT
This bill requires a subscription service provider to delete a consumer’s payment information after the consumer cancels a subscription service.
Under the bill, a subscription service provider that receives a request by a consumer to cancel or terminate the automatic renewal of a subscription service to remove the consumer’s payment information and any other personal financial information within 30 days of receiving the consumer’s request.
A violation of the bill is an unlawful practice under the consumer fraud act. An unlawful practice is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.