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Bill

A 455

Requires cancellation option for any subscription service and establishes certain standards pertaining to use of negative option features.

2026-2027 Regular Session Introduced by Clinton Calabrese and 5 co-sponsors

Requires plain, accessible cancellation for all subscriptions and bans deceptive negative-option practices, with enforcement but no private action.

Introduced, Referred to Assembly Consumer Affairs Committee
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WeVote Research Nonpartisan
Bill Summary · A 455

Overview

  • Bill: A455 (New Jersey, 222nd Legislature)
  • Session: 2026 (pre-filed)
  • Prime sponsors: Assemblyman Michael Venezia, Assemblyman Clinton Calabrese, Assemblyman William B. Sampson IV
  • Co-sponsors: Karabinchak, Stanley, Miller, Lopez, Donlon
  • Purpose: Establish a universal cancellation option for any subscription service and set standards for the use of negative option features. Repeals and replaces current law governing online cancellation for certain health club subscriptions and expands applicability to all subscription services.

Main Purpose and Intent

  • Require a straightforward cancellation mechanism for every subscription service sold to New Jersey consumers.
  • Prohibit deceptive practices associated with negative option features (where silence or inaction is deemed acceptance).
  • Provide enforcement mechanisms and consumer restitution while limiting private rights of action.

Key Provisions and Changes

  • Definitions (section a):

    • Automatic renewal: renewal at the end of a definite term.
    • Clear and conspicuous: text set in a way that clearly calls attention to it (visibility standards).
    • Consumer: a New Jersey resident who buys a subscription service.
    • Negative option feature: consumer’s silence or inaction to reject or cancel is treated as acceptance.
    • Subscription service provider: seller of a subscription service.
    • Subscription service: any service offered on a subscription basis with recurring payments (weekly, monthly, annual, etc.), including services like health clubs.

  • Cancellation rights (section b):

    • Providers must offer a cancellation/termination option using the same medium by which the service was activated or by the consumer’s usual contact method (in person, phone, mail, email, online).

  • Online cancellation access (section c):

    • If online cancellation is offered, a direct, easily accessible link or button must be available to initiate termination.
    • Placement options for the direct link/button:
      1) within the customer account/profile or device settings; or
      2) via a termination email that can be sent without extra information.

  • Negative option safeguards (section d):

    • Prohibits misrepresentation in marketing, failure to clearly disclose material terms before obtaining billing information, failure to obtain express informed consent before the initial charge, and failure to provide a simple cancellation mechanism.

  • Enforcement and penalties (section e):

    • Violations are unlawful practices under New Jersey’s consumer protection laws.
    • Attorney General or Division of Consumer Affairs may seek injunctions and restitution for New Jersey residents harmed.
    • No private right of action is created under this act, and violations cannot serve as a basis for private actions under other laws.

  • Exclusions (section f):

    • Does not apply to services provided by a business or affiliate licensed or regulated under State or federal law (e.g., Board of Public Utilities, FCC, FERC, Department of Banking and Insurance, Division of Consumer Affairs).

  • Repeal (section 2):

    • Repeals Section 1 of P.L.2023, c.241 (C.56:8-42.1). The prior statute related to cancellation/negative option practices is superseded by this bill.

  • Effective date (section 3):

    • Takes effect on the first day of the fourth month following enactment.

Who Would Be Affected

  • Subscription service providers operating in New Jersey (including digital, physical, health clubs, streaming, consumables, and other recurring services).
  • Consumers in New Jersey who purchase subscription-based services.
  • Certain regulated entities and services already overseen by state or federal regulators remain exempt if they are licensed/regulated as specified.

Procedural and Timeline Aspects

  • Status: Introduced and referred to the Assembly Consumer Affairs Committee (January 13, 2026).
  • Effective date: Four months after enactment.
  • Enforceability: Violations trigger potential injunctions, restitution, and penalties under consumer protection laws (no private right of action under this act).

Potential Impact

  • Increased consumer control over subscription services, with clear opt-out pathways and visible cancellation options.
  • Reduced risk of auto-renewal surprise charges and deceptive negative option practices.
  • Stronger enforcement posture via the Attorney General and Division of Consumer Affairs, with penalties for violations.
  • Administrative burden on providers to ensure online and offline cancellation mechanisms are clearly accessible and consistently implemented.
  • Exemptions for regulated entities to avoid conflicts with existing regulatory regimes.

Compiled from official sources — confirm details with the bill’s official record.

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