Requires retailer rebates to be provided by the retailer to a consumer at the time of purchase

BILL NUMBER:S2687D

Title of bill

An act to amend the general business law, in relation to requirements for rebates provided by retailers

Purpose

This legislation would require a rebate when offered solely by a retail establishment to be paid at the time of purchase in a manner of the choosing of the retailer.

Summary of specific provisions

Adds a new section, 391-s, to the General Business Law. It defines "rebate" "manufacture's rebate", requires a rebate offered directly by a retailer to be provided at the time of purchase in a manner of the choosing of the retailer, and provides for a civil penalty of $100 for each violation.

Justification

Many companies apply rebates as a way of enticing customers to purchase items. While no consumer can argue with being offered a discount on a product, companies know that a consumer is significantly less likely to apply for a rebate. Further the rebate process is often cumbersome and consumers often give up, or erroneously fill out the proper forms and are summarily rejected for the rebate. If a company's true intention is to incentive a purchase by offering a discount, then such discount should be applied immediately.

This legislation which applies solely when a rebate is offered by a retailer would require that the rebate is paid at that moment in a manner chosen by the retailer for example with a direct price reduction, or a gift certificate or gift card.

Prior legislative history

S. 6003 of 2004; Referred to Consumer Protection S. 2267 of 2005/06; Referred to Consumer Protection S. 2716 of 2007/08; Referred to Consumer Protection S. 2358 of 2009/10; Referred to Consumer Protection FISCAL IMPLICATIONS: None.

Effective date

The first of September next succeeding the date on which it shall have become law.