Requires an advertising medium at the location offering the sale of motor fuel

BILL NUMBER:S687

Title of bill

An act to amend the general business law and the agriculture and markets law, in relation to requiring an advertising medium present at any premises offering the sale of motor fuel

Purpose or general of bill

The purpose of this bill is to ensure that motorists are able to make informed decisions with respect to motor fuel purchases by requiring gasoline station operators to fully disclose in a clear and conspicuous manner any discounts or price reductions.

Summary of provisions

Sections 1-3 of the bill amend the general business law by adding a new section 396-xx, the agriculture and markets law by amending subparagraph (iii) of paragraph a of subdivision 5 of section 192 by adding a new subparagraph (iv) and the addition of a new section 192-h. This bill would update New York law related to the posting of motor fuel prices by motor fuel dealers. The bill would require dealers to display a sign, placard or banner containing the prices of the three major grades of motor fuel offered for sale that is clearly visible from the street or highway adjacent to the premises. In the event that the dealer offers a discount or price reduction for motor fuel, such posting would be required to contain:

o the price per gallon from which the discount or price reduction is to be taken; o the amount of the discount or price reduction in cents per gallon; and o the conditions of the discount or price reduction.

The bill would require, dealers offering a cash discount to program the dispensers used to dispense fuel, at the discount price to compute the total sale at the discounted price per gallon and to label such dispensers with a notice reading "Includes Cash Discount". Dealers offering cash discounts whose fuel dispensers are not able to be programmed to compute at the cash discounted price would be required to place a conspicuous sign on the dispenser indicating that the dispenser is computing at the credit price and indicating the amount of the discount per gallon.

Section 4 sets forth an effective date of 180 days after enactment.

Justification

In August 2008, the Attorney General revealed the results of an investigation showing that nearly one-third of gas stations operating in Nassau and Suffolk counties engaged in deceptive practices. The Attorney general's investigation identified instances where gas stations engaged in deceptive advertising by listing the lower cash

prices on their street-view sign age without disclosing that the price was only for cash transactions. This practice can result in motorists being lured to the pumps only to find out that if they choose to use a credit card they will be charged a higher price.

In order to protect consumers from this practice and to provide regulatory guidance to gasoline station operators, this bill would require operators to display gasoline prices on a sign, placard or banner visible from the street. If a cash discount is offered, station operators would be required to conspicuously post the original price, the discounted price, and the conditions of the discount. Stations with dispensers that are unable to compute the final sale at the discounted cash price would be required to label such dispensers with a notice indicating that the dispenser is computing at the credit price and indicating the amount of the discount per gallon.

Prior legislative history

2011-12: S.4824/A.4315 (Gabryszak)(Enacting Clause Stricken) 2009: A.6958 (Fields)

Fiscal implications for state and local governments

None.

Effective date

This act shall take effect 180 days after enactment.