Bill Text: NY A03493 | 2011-2012 | General Assembly | Introduced

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Bill Title: Amends the general business law in relation to false advertising and provides that any advertiser's rebates shall be granted at the time of purchase.

Spectrum: Slight Partisan Bill (Republican 6-2)

Status: (Introduced - Dead) 2012-05-16 - held for consideration in consumer affairs and protection [A03493 Detail]

Download: New_York-2011-A03493-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3493
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 25, 2011
                                      ___________
       Introduced  by  M.  of A. CALHOUN, FINCH, McDONOUGH, RAIA -- Multi-Spon-
         sored by -- M. of A.  HAWLEY, MENG, SAYWARD, WEISENBERG --  read  once
         and referred to the Committee on Consumer Affairs and Protection
       AN  ACT  to  amend the general business law, in relation to false adver-
         tisements and providing that any rebates  be  given  at  the  time  of
         purchase
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subdivision 3 of section 350-a of the general business law,
    2  as added by chapter 107 of the laws of  1994,  is  amended  to  read  as
    3  follows:
    4    3. It shall constitute false advertising to:  (A) display or announce,
    5  in  print or broadcast advertising, the price of an item after deduction
    6  of a rebate unless the actual selling price is displayed  or  announced,
    7  and  clear  and  conspicuous notice is given in the advertisement that a
    8  mail-in rebate is required to achieve the lower net price[.];
    9    (B) ADVERTISE THE PRICE OF MERCHANDISE OR SERVICE AS FREE  BY  USE  OF
   10  THE WORD "FREE" OR ANY OTHER TERM OF SIMILAR IMPORT WHEN THE MERCHANDISE
   11  OR SERVICE IS NOT, IN FACT, FREE;
   12    (C) ADVERTISE THE PRICE OF MERCHANDISE OR SERVICE AS A REDUCED OR SALE
   13  PRICE,  OR  COMPARE  THE PRICE TO A PREVIOUS PRICE UNLESS THE ADVERTISED
   14  PRICE IS LOWER THAN THE ACTUAL, BONA FIDE PRICE FOR WHICH  THE  MERCHAN-
   15  DISE  OR  SERVICE  WAS  OFFERED  TO THE PUBLIC ON A REGULAR BASIS BY THE
   16  ADVERTISER, FOR A REASONABLY SUBSTANTIAL PERIOD OF  TIME  PRIOR  TO  THE
   17  ADVERTISEMENT  OR  AS  A  DISCOUNT PRICE, UNLESS THE ADVERTISED PRICE IS
   18  LOWER THAN THE PRICE BEING CHARGED FOR THE SAME MERCHANDISE  OR  SERVICE
   19  BY  OTHER  SELLERS  IN THE AREA; PROVIDED, HOWEVER, IN THE CASE OF A NEW
   20  PRODUCT, IF THE ADVERTISED PRICE IS LESS THAN THE PRICE WHICH THE ADVER-
   21  TISER, IN GOOD FAITH, EXPECTS TO CHARGE AFTER TERMINATION OF THE  INTRO-
   22  DUCTORY  SALE,  THERE  IS  NO  VIOLATION OF THIS SUBDIVISION. THE ACTUAL
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02902-01-1
       A. 3493                             2
    1  PRICE AFTER THE SALE SHALL BE EVIDENCE OF THE  ADVERTISER'S  GOOD  FAITH
    2  EXPECTATIONS;
    3    (D)  ADVERTISE  THE PRICE OF ANY MERCHANDISE AS BELOW COST, UNLESS THE
    4  PRICE IS, IN  FACT,  BELOW  THE  COST  FOR  WHICH  THE  MERCHANDISE  WAS
    5  PURCHASED AND PREPARED FOR SALE BY THE ADVERTISER; AND
    6    (E)  ADVERTISE MERCHANDISE OR SERVICE AS FREE OR THE PRICE OF MERCHAN-
    7  DISE OR A SERVICE AS A DISCOUNT, REDUCED, OR SALE PRICE  IF  RECEIPT  OF
    8  SUCH  MERCHANDISE  OR  SERVICE  IS CONTINGENT UPON THE PURCHASE OF OTHER
    9  MERCHANDISE OR SERVICE AT A PRICE WHICH IS HIGHER THAN THE ACTUAL,  BONA
   10  FIDE PRICE AT WHICH THE MERCHANDISE OR SERVICE WAS OFFERED TO THE PUBLIC
   11  ON A REGULAR BASIS BY THE ADVERTISER FOR A REASONABLY SUBSTANTIAL PERIOD
   12  OF TIME PRIOR TO THE ADVERTISEMENT, OR AT A PRICE WHICH IS SUBSTANTIALLY
   13  HIGHER  THAN THE PRICE BEING CHARGED FOR THE SAME MERCHANDISE OR SERVICE
   14  BY OTHER SELLERS IN THE AREA; PROVIDED, HOWEVER, IN THE CASE  OF  A  NEW
   15  PRODUCT, IF THE ADVERTISED PRICE IS LESS THAN THE PRICE WHICH THE ADVER-
   16  TISER,  IN GOOD FAITH, EXPECTS TO CHARGE AFTER TERMINATION OF THE INTRO-
   17  DUCTORY SALE, THERE IS NO VIOLATION  OF  THIS  SUBDIVISION.  THE  ACTUAL
   18  PRICE  AFTER  THE  SALE SHALL BE EVIDENCE OF THE ADVERTISER'S GOOD FAITH
   19  EXPECTATIONS.
   20    S 2. The general business law is amended by adding a new section 399-j
   21  to read as follows:
   22    S 399-J. REBATE GIVEN AT TIME OF PURCHASE. WHENEVER THE  PRICE  OF  AN
   23  ITEM  AFTER  DEDUCTION OF A REBATE IS DISPLAYED OR ANNOUNCED IN PRINT OR
   24  BROADCAST ADVERTISING, SUCH PRICE AFTER DEDUCTION SHALL  BE  GRANTED  AT
   25  THE TIME OF PURCHASE.
   26    S 3. This act shall take effect immediately.