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Can I offer a free trial for my product or service in New York? What are the requirements?
Free Trials in New York: Requirements and Regulations
If you are planning to offer a free trial for your product or service in New York, there are certain requirements and regulations you need to be aware of.
According to the New York State Attorney General [2], entities offering free trials must provide the required notice regarding the deadline to cancel the offer. This means that you must clearly and conspicuously disclose the deadline by which the customer must cancel the offer to avoid being charged.
Additionally, if your offer involves a negative option feature, you must truthfully, clearly, and conspicuously disclose three pieces of information:
- The fact that the customer’s account will be charged unless he or she takes an affirmative action — such as canceling — to avoid the charge.
- The deadline by which the customer must cancel to avoid being charged.
- The specific steps the customer must take to cancel the offer.
It is important to note that failure to comply with these requirements can result in legal action against your business.
Conclusion
In summary, if you plan to offer a free trial for your product or service in New York, you must provide clear and conspicuous notice of the deadline to cancel the offer and disclose any negative option features. Failure to comply with these requirements can result in legal action against your business.
[2] New York State Attorney General. “Purchases.”
Source(s):
Jurisdiction
New York