Bill > S06038

This bill amends the New York General Business Law to prohibit businesses from charging membership fees during a state disaster emergency under specific circumstances. During such an emergency, businesses cannot charge membership fees when: the contracted service has completely or partially stopped; the service has become impossible or illegal to provide; the non-use of a facility or service has fundamentally frustrated the purpose of the contract; or a consumer can demonstrate financial hardship from paying the fee. The bill allows for a civil penalty of up to $1,000 for each violation, and specifically does not limit any additional legal rights consumers might have under other laws. The legislation aims to protect consumers from being charged for services they cannot use or access during state-declared disaster emergencies, such as those caused by pandemics, natural disasters, or other extreme events that significantly disrupt normal business operations. The law would take effect immediately upon passage, providing immediate relief to consumers during challenging emergency situations.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S6038