Relates to consumer protection from prescription drug reimportation

2 Co-sponsors

• Timothy M. Kennedy
• George D. Maziarz

BILL NUMBER:S7389A

Title of bill

An act to amend the general business law, in relation to consumer protection from prescription drug reimportation

Purpose

This bill makes prescription drug reimportation an unlawful practice in New York State, authorizes the Attorney General to make an application to the court for an injunction against the continuance of violations of this article, and allows the court to impose civil penalties for such violations.

Summary of provisions

Section one adds a new article to the general business law titled "Consumer Protection from Prescription Drug Reimportation."

This section makes it an unlawful practice to purchase for resale, sell, offer for sale, or deliver in any manner any prescription drug approved by the United States Federal Drug Administration that is either: (1) manufactured in the United States, exported to another country, and then subsequently reimported in violation of state or federal law, or (2) manufactured for sale in another country and imported into the United States in violation of state or federal law.

Further, this section provides enforcement and penalties for this new article. It authorizes the New York State Attorney General to make an application to the court for an injunction to enjoin and restrain the continuance of violations of this article and authorizes the court to issue such injunction if the court or justice finds that the defendant has in fact violated this article. It also authorizes the New York State Attorney General, in connection with any proposed application for injunction, to take proof, make a determination of the relevant facts, and issue subpoenas in accordance with the Civil Practice Law and Rules (CPLR). Further, the court may impose a civil penalty of $1,000 to $10,000 when a violation of this article has occurred.

Lastly, this section provides that the New York State Attorney General give notice to the person against whom such proceeding is contemplated and an opportunity to show why proceedings should not be instituted against him or her. The Attorney General is exempted from giving notice and opportunity where it is not in the public interest.

Section two states that this act shall take effect on the ninetieth day after it shall have become a law.

Justification

In recent years, there has been an increase in individuals and businesses buying prescription drugs from foreign countries and importing them for sale in New York State. This practice is extremely dangerous to New York consumers. Prescription drugs that are illegally imported into New York State could be contaminated, ineffective, and improperly stored and transported, thus making them unsafe. These drugs pose additional risks to consumers if they do not comply with federal labeling requirements and warnings which provide important product information to the consumer.

While the illegal importation of prescription drugs may be prosecuted at the federal level, there are few protections for consumers at the

state level. This bill creates a new article under the general business law that makes prescription drug reimportation an unlawful practice and provides the New York State Attorney General and the court with certain powers for those in violation of this article.

Legislative history

New bill.

Fiscal implications

None to the state

Effective date

The ninetieth day after it shall have become a law.