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- Referred to consumer protection
- Referred to consumer protection
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BILL NUMBER:S5339
Title of bill
An act to amend the general business law, in relation to availability for sale of advertised merchandise
Purpose or general idea of bill
This legislation relates to the availability of merchandise at a price lower than it is normally sold for, and outlines a detailed policy in relation to rainchecks.
Summary of specific provisions
This bill adds a new Section 397-b to the General Business Law.
Should a retailer advertise merchandise at a price lower than the product is usually sold at, and such article is not available though out the advertised period, then at the request of the purchaser the store must offer to issue a raincheck unless certain provisions exist
This legislation defines rainchecks, details the information which must be included on the raincheck, and Prescribes the manner in which affected retailers must inform consumers of the availability of rain-checks. Each retailer that advertises sale items would be required to clearly and conspicuously post a sign indicating where a raincheck can be obtained. Violation of any provision of the bill would subject a retailer to the provisions of Article 22-A of the General Business Law for having committed a false and misleading advertising practice and/or a civil penalty,
Justification
The practice of "bait and switch" advertising which is deceptive within the statutory proscription (as in Section 349 (a) of the General Business Law) involves an advertisement and offer of a product which is not bona fide because what the merchant actually has on hand and intends to sell is significantly different from that which drew the potential customer in, and, hence, is a practice which does not include conduct of a seller in continually modifying proposed terms of a contract with the buyer as the negotiations proceed. This judicial decision was set forth in GOLDBERG V. MANHATTAN LINCOLN MERCURY 91985), and is taken from McKinney's. Enactment of this law would enable New York State to enforce long-standing Federal Trade Commission regulation and policy, court orders, and a 1972 New York City Regulation on bait advertising.
Although many retailers have implemented raincheck policies with the interests of the consumer in mind, some retailers either do not have policies or employ policies that do not favor the consumer. The result is that many consumers view raincheck policies with jaundiced eyes. The credibility of many retailers' raincheck policies have eroded, creating an industry-wide crisis of confidence.
Neither the consumer nor the retailer wins. Several studies have found that the Federal Trade Commission policies, New York City regulation, bait advertising guides, and general orders have not increased compliance with the premise that when supplies of an advertised item will not meet anticipated demand, the advertisement should disclose that fact. This bill would serve to statutorily recognize these current rules and regulations and provide for greater enforcement of them. Indeed, consumers would receive the protection they deserve from deceptive bait advertising.
Prior legislative history
A.443 of 2011/2012 A.10778 and S.4445 of 2009/2010
Fiscal implications
No fiscal implications are related to this legislation.
Effective date
This act shall take effect on the sixtieth day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.