Relates to the advertising medium for motor fuel sales

2 Co-sponsors

• Martin Malavé Dilan
• Charles J. Fuschillo Jr.

BILL NUMBER:S7087A

Title of bill

An act to amend the general business law and the agriculture and markets law, in relation to the advertising medium for motor fuel sales

Purpose or general idea of bill

The purpose of this bill is to ensure that motorists are able to make informed decisions with respect to motor fuel purchases.

Summary of specific provisions

This bill would update New York law related to the posting of motor fuel prices by motor fuel stations. The bill would require stations offering fuel to the public at a differential price of seven percent or greater, to post the higher of the prices offered on an advertising medium. If the station offers motor fuel to the public at a differential price of less than seven percent, then the station must either post the higher of the prices available, or they must clearly and conspicuously give notice of the fact that they are advertising the reduced price.

The bill would provide that failure to comply shall subject any person or firm to a civil penalty of up to five hundred dollars for a first offense, up to one thousand dollars for a second offense, and up to ten thousand dollars for a third or subsequent offense.

Justification

With gas prices averaging over four dollars a gallon in many areas of the State, motorists are feeling significant pain at the pump. To add insult to injury, some motorists have reported being lured to a particular gas station by the promise of reduced price fuel, only to find that the price listed on the roadside sign only applies to cash purchases. In some instances, motor fuel stations are advertising a price that is one to two dollars less than the price that is actually available to credit customers. Motorists depend on roadside signs to determine which gas station to patronize, using such signs to quickly comparison shop among competing stations so it is important that these signs relay accurate information to consumers. Motorists have also reported instances of unclear and unreadable discount disclosures. In some instances, the words "cash" and "credit" are posted in a font so small the words are nearly impossible to read unless the motorists are directly under or beside the sign.

Prior legislative history

New bill.

Fiscal implications for state and local governments

None to the State.

Effective date

This act shall take effect on the one hundred eightieth day after which it shall have become a law.