What's happening
This bill allows the attorney general to seek damages or fines against unlawful sellers of unordered goods in New York.
Why it matters
Empowers the attorney general to seek financial penalties. not just injunctions—against businesses that send unordered goods, meaning stronger deterrence for violating consumer protection laws.
Allows for recovery of actual damages or statutory fines. (up to $500 per violation), which could provide more meaningful compensation and justice for consumers affected by these unlawful sales tactics.
Applies the new enforcement and penalty provisions to all cases involving unordered goods. , potentially leading to broader compliance among sellers and greater protection for New Yorkers from deceptive business practices.
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Who cares
Headline styles
Crack Down on Unlawful Selling
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to consumer protection
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
148
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. SQUADRON -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to authorizing the attorney general to bring an action for violation of the prohibitions concerning unlawful selling practices and specifying damages awardable
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 3 of section 396 of the general business law, as amended by chapter 99 of the laws of 1966, is amended to read as follows:
3. a. Whenever there shall be a violation of this section, an application may be made by the attorney general in the name of the people of the state of New York to a court or justice having jurisdiction to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violation; and if it shall appear to the satisfaction of the court or justice that the defendant is, in fact, violating this section, an injunction may be issued by such court or justice, enjoining and restraining such action or violation, without requiring proof that any person has, in fact, been misled or deceived or otherwise damaged thereby.
b. In addition to the authority granted to the attorney general pursuant to paragraph a of this subdivision, the attorney general may bring an action against a person who violates the provisions of subdivision two of this section to recover the greater of:
(1) actual damages; or
(2) up to five hundred dollars for each instance in which goods, wares or merchandise were sent in violation of the provisions of subdivision two of this section.
§ 2. This act shall take effect immediately and shall apply to all selling practices pertaining to unordered goods.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02676-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to authorizing the attorney general to bring an action for violation of the prohibitions concerning unlawful selling practices and specifying damages awardable
Purpose of the bill
Authorizes the attorney general to bring an action to protect consumers who are sent unsolicited goods and later billed with their only recourse being sending back the goods at their own expense.
Summary of provisions
Section 1 of the bill amends section 396 of the general business law as it relates to authorizing the attorney general to take action against violations of the unsolicited and unordered good provisions. It allows the attorney general to recover damages of either the actual damages or up to $500 for each violation.
Justification
Consumers are sometimes sent unsolicited goods under the pretense that they will not be charged if they return the goods. However, consumers can be threatened with collection notices and credit report damage related to unsolicited goods. This practice is deceptive and the Attorney General should be empowered to protect consumers.
Prior legislative history
2015-2016: S1629/A1354 - REFERRED TO CONSUMER PROTECTION/Passed Assembly 2013-2014: S7283/A1441 - REFERRED TO CONSUMER PROTECTION/Passed Assembly A.2213 of 2011-12 A.8049 of 2009-10
Fiscal implications for state
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.