N.Y. PEP Law § 412-A

§ 412-a. Cancellation of contracts for future consumer services. 1.\nContract for future consumer services. As referred to in this section,\nthe term "contract for future consumer services" shall mean any contract\nentered into for consumer services to be performed in the future on a\nlesson-by-lesson or class-by-class basis and offered, sold or provided\nby correspondence schools which for the purposes of this section shall\nmean any plan or method used by any person or persons, firm, corporation\nor other organization for giving instruction in any form or manner by\ncorrespondence under contract.\n 2. No person, including any business entity, may contract to receive,\nor demand, in the event of cancellation of a contract for future\nservices, more than the total of:\n (a) five percent of the cash price, but not to exceed fifty dollars,\nand\n (b) a pro rata portion of the total price, representing the proportion\nof services used or completed.\n In addition, the seller may receive or demand the cost of any\nancillary goods which the buyer has consumed or wishes to retain after\ncancellation of the contract. In no instance shall the seller collect\nmore than the full contract price from the buyer.\n 3. Within ten days after a contract for future consumer services has\nbeen cancelled, the seller shall tender to the buyer any payments made\nin excess of the amounts permitted to be retained pursuant to\nsubdivision two of this section.\n 4. Cancellation. Cancellation shall occur:\n (a) when the buyer mails to the seller notice of his intent to cancel,\nor\n (b) where the seller has actual notice of the buyer's intention to\ncancel, or\n (c) where the buyer fails to attend consecutive scheduled classes or\nlessons constituting at least twenty-five percent of the total lessons\nor time contracted for, without informing the seller in writing that he\nintends to remain enrolled.\n 5. The contract forms used by the seller shall conspicuously disclose\nthe seller's cancellation provisions in compliance with subdivisions\ntwo, three, and four of this section and shall contain the following\nnotice in ten point bold face type:\n If you cancel this contract (the seller) may keep only five percent of\nthe cash price, but not to exceed fifty dollars, and a portion of the\ncontract price based upon the lessons or services you have used. You may\nnotify the seller of your intent to cancel by mail, addressed to (the\nseller) at (seller's address).\n 6. Nothing in this section shall be construed so as to nullify or\nimpair any right or rights which a buyer may have against a seller at\ncommon law, by statute, or otherwise.\n