Bill Text: NY S03929 | 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 advertisers' rebates shall be granted at the time of purchase.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-01-04 - REFERRED TO CONSUMER PROTECTION [S03929 Detail]

Download: New_York-2011-S03929-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3929
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                    March 10, 2011
                                      ___________
       Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
         printed to be committed to the Committee on Consumer 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
   23  PRICE  AFTER  THE  SALE SHALL BE EVIDENCE OF THE ADVERTISER'S GOOD FAITH
   24  EXPECTATIONS;
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02902-01-1
       S. 3929                             2
    1    (D) ADVERTISE THE PRICE OF ANY MERCHANDISE AS BELOW COST,  UNLESS  THE
    2  PRICE  IS,  IN  FACT,  BELOW  THE  COST  FOR  WHICH  THE MERCHANDISE WAS
    3  PURCHASED AND PREPARED FOR SALE BY THE ADVERTISER; AND
    4    (E)  ADVERTISE MERCHANDISE OR SERVICE AS FREE OR THE PRICE OF MERCHAN-
    5  DISE OR A SERVICE AS A DISCOUNT, REDUCED, OR SALE PRICE  IF  RECEIPT  OF
    6  SUCH  MERCHANDISE  OR  SERVICE  IS CONTINGENT UPON THE PURCHASE OF OTHER
    7  MERCHANDISE OR SERVICE AT A PRICE WHICH IS HIGHER THAN THE ACTUAL,  BONA
    8  FIDE PRICE AT WHICH THE MERCHANDISE OR SERVICE WAS OFFERED TO THE PUBLIC
    9  ON A REGULAR BASIS BY THE ADVERTISER FOR A REASONABLY SUBSTANTIAL PERIOD
   10  OF TIME PRIOR TO THE ADVERTISEMENT, OR AT A PRICE WHICH IS SUBSTANTIALLY
   11  HIGHER  THAN THE PRICE BEING CHARGED FOR THE SAME MERCHANDISE OR SERVICE
   12  BY OTHER SELLERS IN THE AREA; PROVIDED, HOWEVER, IN THE CASE  OF  A  NEW
   13  PRODUCT, IF THE ADVERTISED PRICE IS LESS THAN THE PRICE WHICH THE ADVER-
   14  TISER,  IN GOOD FAITH, EXPECTS TO CHARGE AFTER TERMINATION OF THE INTRO-
   15  DUCTORY SALE, THERE IS NO VIOLATION  OF  THIS  SUBDIVISION.  THE  ACTUAL
   16  PRICE  AFTER  THE  SALE SHALL BE EVIDENCE OF THE ADVERTISER'S GOOD FAITH
   17  EXPECTATIONS.
   18    S 2. The general business law is amended by adding a new section 399-j
   19  to read as follows:
   20    S 399-J. REBATE GIVEN AT TIME OF PURCHASE. WHENEVER THE  PRICE  OF  AN
   21  ITEM  AFTER  DEDUCTION OF A REBATE IS DISPLAYED OR ANNOUNCED IN PRINT OR
   22  BROADCAST ADVERTISING, SUCH PRICE AFTER DEDUCTION SHALL  BE  GRANTED  AT
   23  THE TIME OF PURCHASE.
   24    S 3. This act shall take effect immediately.