Can we keep auto-renewal clauses in our contracts in New York?

For B2C customers, New York's General Business Law § 394-b applies. It requires you to:

• Clearly disclose that the contract auto-renews, including the renewal length and price.
• Get the customer's affirmative consent before the agreement is finalized.
• Provide an easy way to cancel, such as an email option or a clear online process.

For service, maintenance, or repair contracts (covering both B2B and B2C), New York General Obligations Law § 5-903 also applies. Under this law, businesses must:

• Give written notice of the auto-renewal clause to the customer.
• Deliver the notice in person or by certified mail (though in some cases, electronic notice may be allowed if the contract expressly permits it as a form of written notice).
• Send the notice at least 15 days, but not more than 30 days, before the customer's deadline to cancel.

In short, New York law still allows auto-renewal clauses, but businesses must meet specific notice and disclosure requirements under state law. Clear processes and well-documented communication can help reduce confusion and support your renewal practices.

What to consider in your specific situation

While these laws provide a framework, the details of your agreements and customers matter. Here are some reasons your approach may need to be tailored:

• The type of contract you're using (service, subscription, or product-based).
• The exact wording of your renewal and cancellation terms.
• Whether you're working with businesses, consumers, or both.
• How and when you currently notify customers about renewals.
• Which industry-specific regulations may also apply to your contracts.

Because every business setup is different, it can help to learn more about how these rules apply to your specific contracts. You can ask your own question in Rocket Copilot to get legal information about New York's renewal laws, or connect with a Legal Pro to learn more about your options.