Question
Can we keep auto-renewal clauses in our contracts in New York?
Our business offers commercial and residential maintenance contracts that auto-renew by time or usage. With New York’s new rules on renewals, are these still allowed?
Answer
Auto-renewal clauses are generally still allowed in New York, but the rules around them have become stricter. Both business-to-consumer (B2C) and business-to-business (B2B) service contracts now have state laws that set clear requirements. If your contracts don't follow these rules, the renewal may not be enforceable.
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.

At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced Legal Pros—licensed attorneys and paralegals—to ensure legal accuracy.
Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.

Need help navigating legalese in a contract?
Notice periods, renewals, and termination rights can be confusing — and getting them wrong can cost you. As a Rocket Lawyer member, you’ll have support at every step:
- Rocket Copilot Q&A for instant legal information
- Ask a Legal Pro for human responses within a business day
- Document insights, Contract Review, and other smart legal tools
Get legal confidence for less than the price of your daily coffee.
Explore more about termination and term-related clauses

Explore more questions about auto-renewal clauses
Auto-renewal clauses determine whether a contract renews automatically unless one party cancels. These questions explore legal requirements, notice rules, and how to manage ongoing renewals.
- How do we add auto-renewing subscription fees to client contracts?
- Does my online business have to follow auto-renewal laws?
- Can my California gym use auto-renewal clauses in membership contracts?
- Can I set up yearly auto-renewing contracts with clients in California?
- Can we keep auto-renewal clauses in our contracts in New York?
- How do I cancel a contract with a multi-year auto-renewal clause?
- How can I change a yearly referral agreement into one that lasts forever?

Explore Rocket Lawyer solutions that can help you move forward
Whether you’re drafting agreements, reviewing contracts, or starting a business, Rocket Lawyer offers expert support to make legal tasks easier and more affordable.
- Get your contract reviewed by Rocket Copilot or a Legal Pro
- Connect with a Legal Pro for quick answers to questions
- Make personalized documents that are vetted by lawyers
- Get help forming your business and submitting filings
Disclosures
- This page offers general legal information, not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.