NY Gen Bus L § 394-C (2021)
2021 New York Laws GBS - General Business Article 26 - Miscellaneous 394-C - Limitations on Certain Contracts Involving Social Referral Services.

§  394-c.  Limitations  on certain contracts involving social referral services.  1. As used in this section, the following  terms  shall  have the following meanings:  (a)  "social  referral  service"  shall  include any service for a fee providing matching of members of the opposite sex, by use of computer or any other means, for the purpose of dating and general social contact.  (b) "ancillary services" shall refer to goods or services directly  or indirectly  related  to  or to be provided in connection with the social referral service process, including  but  not  limited  to  photography, grooming,  cosmetology,  dating  etiquette,  dating counseling, or other services.   2. No contract for social referral service shall  require  payment  by the  purchaser of such service of a cash price in excess of one thousand dollars.  Services to be rendered to the purchaser  under  the  contract may  extend  over  a  period  not  to exceed two years from the date the contract is entered into.   2-a. No social referral service provider shall require the purchase of an ancillary service by a purchaser of a social referral  service  as  a condition  of entering into a social referral service contract with such provider.   3. Every contract for social referral service which  requires  payment by  the  purchaser  of  such  service  of  a  total  amount in excess of twenty-five dollars shall provide that the seller of such  service  must furnish  to the purchaser a specified certain number of social referrals per month.   4. Every contract for social referral service which  requires  payment by  the  purchaser  of  such  service  of  a  total  amount in excess of twenty-five dollars shall provide that in the event that the  seller  of such  service  does  not  furnish to the purchaser the specified certain number of social  referrals  for  two  or  more  successive  months  the purchaser  shall have the option to cancel the contract and to receive a refund of all monies paid pursuant to the cancelled  contract  with  the exception  that the seller shall be entitled to retain as a cancellation fee fifteen per cent of the cash price or a  pro  rata  amount  for  the number  of  referrals  furnished to the purchaser, whichever is greater. Every such contract shall set forth in the contract and in the  bill  of rights  the  manner  in  which  such  services  provider  determines its cancellation fee pursuant to this subdivision.   5. Every contract for social referral service shall provide  that  the seller will not without the prior written consent of the purchaser sell, assign  or  otherwise  transfer for business or for any other purpose to any person any information and material of a personal or private  nature acquired  from  a  purchaser  directly  or  indirectly including but not limited  to  answers  to  tests  and  questionnaires,   photographs   or background information.   5-a.  Every  contract for a social referral service shall provide each purchaser with the unilateral right to place his or  her  membership  on hold  for  a  period  of  up  to  one  year; provided, however, that the purchaser and social referral service may mutually  agree  to  a  longer period  not  to  exceed  two years.   To exercise the   unilateral right provided in  this  subdivision,  a  purchaser  must  notify  the  social referral service provider in writing of his or her intent to do so.   6.  Every  contract  for social referral service shall provide that at the expiration of the contract or at the expiration of services rendered by the seller, for  any  reason,  all  information  and  material  of  a personal  or  private  nature  acquired  from  a  purchaser  directly or indirectly  including  but  not  limited  to  answers   to   tests   and  questionnaires,  photographs or background information shall be promptly returned by the seller to the purchaser by certified mail.   7.  (a)  Every contract for social referral service shall provide that such contract may be cancelled without a cancellation fee  within  three business  days  after  the date of receipt by the buyer of a copy of the written contract.  (b) In every social referral service sale, the seller shall furnish to the buyer a fully completed copy of the contract pertaining to such sale at the time of its execution, which  is  in  the  same  language,  e.g., Spanish,  as  that  principally  used in the oral sales presentation and which shows the date of  the  transaction  and  contains  the  name  and address  of  the  seller,  and  in  the immediate proximity to the space reserved in the contract for the signature of the buyer and in not  less than  ten-point  bold  face  type,  a  statement  in  substantially  the following form: YOU, THE BUYER, MAY CANCEL THIS CONTRACT WITHOUT  ANY  CANCELLATION  FEE WITHIN  THREE (3) BUSINESS DAYS AFTER THE DATE OF THIS CONTRACT. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT.  (c)  Notice  of  cancellation  shall  be  delivered  by  certified  or registered United States mail at the address specified in the contract.  (d)  At the time the buyer signs the social referral service contract, a completed form in duplicate, captioned "NOTICE OF CANCELLATION", which shall be attached to the contract and easily detachable, and which shall contain in  not  less  than  ten-point  bold  face  type  the  following information  and statements in the same language, e.g., Spanish, as that used in the contract:                                    NOTICE OF CANCELLATION                                 enter date of transaction)                                             (Date) YOU MAY CANCEL THIS CONTRACT, WITHOUT ANY PENALTY OR OBLIGATION,  WITHIN THREE  (3) BUSINESS DAYS AFTER THE DATE OF THIS CONTRACT BY MAILING THIS SIGNED AND DATED NOTICE  OF  CANCELLATION  BY  CERTIFIED  OR  REGISTERED UNITED STATES MAIL TO THE SELLER AT THE ADDRESS SPECIFIED HEREIN. IF YOU CANCEL,  ANY  PAYMENTS  MADE  BY YOU UNDER THE CONTRACT WILL BE RETURNED WITHIN TEN (10) BUSINESS DAYS FOLLOWING RECEIPT BY THE  SELLER  OF  YOUR CANCELLATION  NOTICE.   TO CANCEL THIS TRANSACTION, MAIL BY CERTIFIED OR REGISTERED  UNITED  STATES  MAIL  A  SIGNED  AND  DATED  COPY  OF   THIS CANCELLATION NOTICE TO: (Name of Seller)         NOT LATER THAN _______________ (Address of Seller)                      (Date) ___________________  (e) In every social referral service sale or renewal, the seller shall provide  each  purchaser  with a clear and conspicuous, separate written notice, to be known as the "Dating Service  Consumer  Bill  of  Rights", which shall contain at least the following information:                  Dating Service Consumer Bill of Rights   1.  No  social  referral service contract shall require the payment by you, the purchaser, of an amount greater than one thousand  dollars.  In addition, no such contract may extend over a period of time greater than two years.   2.  No  social  referral  service  contract  shall  require  you,  the purchaser, to purchase a good or service which is directly or indirectly related to the social referral service.  These extra services are  known as  ancillary services and, while these ancillary service may be offered to you, the law prohibits the seller from requiring  that  you  purchase this service as a condition of your social referral service contract.    3.   If   your  social  referral  service  contract  costs  more  than twenty-five dollars,  the  seller  must  furnish  a  minimum  number  of referrals  per  month to you. If this minimum amount is not furnished to you for two successive months, you have the  option  of  cancelling  the contract  and  receiving a full refund of all the money you paid, less a cancellation fee which cannot exceed either fifteen percent of the  cash price or a pro rata amount for the number of referrals furnished to you.   4.  Your  social  referral  service contract must specify the distance which you, the purchaser, are willing  to  travel  to  meet  any  social referral.  No  social  referrals  shall  be  furnished where you and the referral live at a distance greater than the distance specified  in  the contract.   5.  The  provider  must  have  an  established  policy  to address the situation of your moving outside the area it services. This policy  must be explained in your contract.   6.  If  any  provision  of  the  social  referral  service contract is violated, you have the  right  to  bring  a  court  action  against  the provider which has violated the contract.   8.  Every  contract  for  social  referral  service  shall specify the distance which the buyer  is  willing  to  travel  to  meet  any  social referral.  No  social  referral  shall be furnished by the seller to the buyer if either the buyer or the social referral reside  at  a  distance further  than  the  distance  specified  in either the buyer's or social referral's contracts.   8-a.  Every  social  referral  service  provider  must  establish  and administer  a  fair  and  reasonable policy for the situation in which a purchaser moves to permanently reside at a location outside the  service area  of such provider.  This policy must be set forth in every contract for social referral service.   9. (a) Whenever  there  shall  be  a  violation  of  this  section  an application  may  be  made  by  the  attorney general in the name of the people  of  the  state  of  New  York  to  a  court  or  justice  having jurisdiction  by  a  special proceeding to issue an injunction, and upon notice to the defendant of not  less  than  five  days,  to  enjoin  and restrain  the  continuance  of such violation; and if it shall appear to the satisfaction of the court or justice  that  the  defendant  has,  in fact, violated this section, an injunction may be issued by the court or justice,  enjoining  and  restraining  any  further  violations, without requiring proof that any person has, in fact, been  injured  or  damaged thereby.  In  any  such proceeding, the court may make allowances to the attorney general as provided in paragraph  six  of  subdivision  (a)  of section  eighty-three hundred three of the civil practice law and rules, and direct restitution.  Whenever  the  court  shall  determine  that  a violation  of  this  section  has occurred, the court may impose a civil penalty of not more than one thousand dollars for each  violation.    In connection  with  any  such proposed application the attorney general is authorized to take proof and make a determination of the relevant  facts and  to  issue  subpoenas  in accordance with the civil practice law and rules, and direct restitution.  (b) Any person who has been injured by reason of a violation  of  this section  may  bring  an  action  in  his  or her own name to enjoin such violation, an action to recover his  or  her  actual  damages  or  fifty dollars whichever is greater, or both such actions.  (c)  In cities having a population over one million, the provisions of this section may be enforced concurrently with the attorney  general  by the  director of a local or municipal consumer affairs office. In cities having a population over one  million,  such  local  entities  may  also require   social  referral  services  to  be  licensed.  Such  licensing  requirements  may  be  promulgated  as  are  reasonably   necessary   to effectuate  licensure,  provided,  however, that such localities may not impose substantive requirements  that  are  inconsistent  with  or  more restrictive  than  those  set  forth  in  this section. Any fee for such license may not exceed three  hundred  forty  dollars  for  a  two  year period.