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History
- Referred to consumer protection
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Provides that sellers of goods on the internet may not debit a charge account until goods are shipped or must credit the account if debited before
In Assembly Committee · Consumer Affairs And Protection · Sponsor John McEneny
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to charge accounts used in the purchase of mail-order or telephone-order merchandise
Purpose
To protect the interest of the consumer by prohibiting credit card accounts from being billed until the time that the purchased goods are shipped.
Summary of provisions
This legislation amends Section 396-m to ensure that sellers of goods via mail-order, telephone-order or the internet are prohibited from charging the buyer's credit card account until such time as the goods are shipped.
Justification
Section 396-m of the General Business Law relates to mail-order and telephone order and internet sales. It provides that no such business may accept an order for merchandise which is not reasonably anticipated to be available for shipment within 30 days of the date the seller debits the buyer's account. It further qualifies the above in the event that the seller elects to be governed by a provision which provides that when the seller is unable to ship the goods within the specified time frame, due to circumstances beyond their control, they send a notice to the customer stating the expected delay, providing the customer with the choice to cancel the order and receive a refund, be shipped the merchandise at a later date, or accept substitute merchandise.
This legislation recognizes that there are situations beyond the control of the seller and amends Section 396-m i (i) to provide that, if the seller becomes aware that the item cannot be shipped within 30 days, they are prohibited from charging the customer's account until such time as the merchandise is shipped. Consumers who shop for goods through mail-order, telephone-order or the internet should not be responsible for paying for those goods until such time as the goods are shipped.
Legislative history
2007/2008 - S.818 Remained in the Senate Committee on Consumer Protection/A.1535 Remained in the Assembly Consumer Affairs and Protection Committee 2005/2006 - S.532 Remained in the Senate Committee on Consumer Protection/A.959 Remained in the Assembly Consumer Affairs and Protection Committee 2003/2004 - S.213 Remained in Senate Consumer Protection Committee/A.342 Remained in the Assembly Consumer Protection Committee 2001/2002 - S.1981 Remained in Senate Consumer Protection Committee
Fiscal implications
None.
Effective date
This act shall take effect on the first of November next succeeding the date on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.