Enacts a "Computer Lemon Law" to protect purchasers of defective computer equipment

BILL NUMBER:S3227

Title of bill

An act to amend the general business law, in relation to protecting the purchasers of defective computer equipment

Summary of provisions

This bill would add Article 16-A to the general business law, also titled the "Computer Lemon Law," which will require written notice to purchasers regarding purchasers' rights, of computer equipment at time of sale or lease of such equipment. This statement must be signed in acknowledgement by the purchaser, and must include the name and version number of all hardware and operating software purchased. The purchaser is entitled to effective repairs by the manufacturer for any nonconformity that arises, at no cost to the purchaser during a minimum coverage period of 24 months. Equipment must be repaired in a timely manner either on-site or off, but with shipping or related charges billed to the manufacturer.

Repairs must be guaranteed by the manufacturer for two years. If the repairs are ineffective the purchaser may return for further repair at no cost, or may be refunded by the manufacturer, or may receive a new computer/equipment of equal or greater value from the manufacturer.

No computer device returned in accordance with this section may be resold in this state. A manufacturer who violates any provision of this article may be subject to civil action by the purchaser to recover damages not to exceed six-thousand dollars in addition to litigation fees and replacement of ineffective computer devices.

Justification

Marketing of computer equipment has expanded to the point where unscrupulous sale and leasing tactics have become common. Many consumers have complained that they were promised the best, but when they receive a defective product and contact computer companies for a remedy, they are greeted with long telephone holds, followed by hour long tests to be administered by the consumer and then several weeks worth of waiting to mail the computer to the company to hopefully fix the problem. Sometimes these consumers have are left with no choice than to keep a product that is less than what was promised.

When these types of situations occur with a recently purchased vehicle in New York, the consumer is covered by the Lemon Law with rights including the return of the vehicle for the full purchase price. The computer consumer should have similar formal, across-the-board protection in purchasing costly equipment, should there be nonconformity in the equipment once the purchaser takes possession.

Existing law

None.

Fiscal implications

None to the state.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become a law.