What's happening
This bill requires travel promoters and consultants to provide detailed written or electronic disclosures before accepting payment, and increases penalties for violations causing significant consumer financial loss.
Why it matters
Earlier, clearer disclosures. The bill requires travel promoters and consultants to provide detailed, written or electronic disclosures—including all fees, cancellation terms, and service details—before or at the time payment is accepted, making it harder for companies to hide crucial information in the fine print.
Modernized communication standards. By explicitly allowing electronic disclosures, the bill ensures that consumers dealing online or through digital means receive the same protections and information as those making purchases in person or on paper.
Stronger enforcement mechanisms. The bill increases potential penalties for violations that result in significant consumer financial losses ($5,000 or more), making them felonies instead of misdemeanors, which raises the stakes for bad actors and may deter fraudulent or deceptive practices.
Enhanced consumer leverage. The changes empower the state attorney general to seek injunctions and restitution more effectively, and impose civil penalties proportional to consumer losses, potentially providing stronger remedies and recourse for victims of travel-related scams.
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Require Written Travel Agreements
Plain English, a few words. Used as the page title.
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History
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Require Written Travel Agreements
In Senate Committee · Consumer Protection · Sponsor Brian Kavanagh
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1793
2017-2018 Regular Sessions
IN SENATE
January 10, 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 travel agreements
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 157-a of the general business law, as added by chapter 754 of the laws of 1990, is amended to read as follows:
1. When a person agrees, in response to a solicitation by a travel promoter which is directed to the person individually, to purchase membership in a travel club or to enter into any travel services contract or other agreement to accept transportation, lodging, an interest or investment in a time share plan, travel investments, or other travel services, the travel promoter must provide such purchaser with written or electronic disclosure of all limitations on and terms of such purchase or agreement [within five business days of the date of the agreement] at the time or prior to the receipt of payment. Such disclosure shall clearly and conspicuously include:
a. the name, business address and telephone number of the travel promoter;
b. the amount due, the date of payment, the purpose of the payment and an itemized statement of the balance due, if any;
c. the name of the carrier with which the travel promoter has contracted to provide the transportation, the type and size of carrier to be used, and the date, time and place of each departure;
d. a detailed description of any other services provided in conjunction with the transportation;
e. conditions, if any, upon which the travel services contract between the travel promoter and the traveler may be cancelled, and the rights and obligations of all parties in the event of such cancellation;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04415-01-7
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f. the conditions, if any, upon which the travel services contract between the travel promoter and the carrier or other service provider may be cancelled, and the rights and obligations of all parties in the event of such cancellation; and
g. a description of all contingencies, limitations and/or conditions of the agreement.
§ 2. The general business law is amended by adding a new section 157-b to read as follows:
§ 157-b. Additional prohibitive practices by travel consultants. A travel consultant shall not receive payment for travel or services connected therewith unless at the time or prior to the receipt of payment, the travel consultant provides the purchaser with written or electronic disclosure of the terms of the purchase. Such disclosure shall clearly and conspicuously include:
1. the name, business address and telephone number of the travel consultant;
2. the amount due, the date of payment, the purpose of the payment and an itemized statement of the balance due, if any;
3. the name of the carrier with which the travel consultant has contracted to provide the transportation, the type and size of carrier to be used, and the date, time and place of each departure;
4. a detailed description of any other services provided in conjunction with the transportation;
5. conditions, if any, upon which the services between the travel consultant and the traveler may be cancelled, and the rights and obligations of all parties in the event of such cancellation;
6. the conditions, if any, upon which the agreement between the travel consultant and the carrier or other service provider may be cancelled, and the rights and obligations of all parties in the event of such cancellation; and
7. a description of all contingencies, limitations and/or conditions of the agreement.
§ 3. Subdivisions 1 and 2 of section 159 of the general business law, as amended by chapter 754 of the laws of 1990, are amended to read as follows:
1. Except as otherwise provided by law, any travel consultant who shall violate the terms of section one hundred fifty-eight of this article shall be guilty of a misdemeanor provided, however, that where such violation results in five thousand dollars or more of financial loss to a consumer, such violation shall constitute a class E felony.
2. Except as otherwise provided by law, any travel promoter who shall knowingly violate the terms of section one hundred fifty-eight-a of this article shall be guilty of a misdemeanor provided, however, that where such violation results in five thousand dollars or more of financial loss to a consumer, such violation shall constitute a class E felony.
§ 4. Subdivision 4 of section 159 of the general business law, as added by chapter 754 of the laws of 1990, is amended to read as follows:
4. Enforcement; penalties. Whenever there shall be a violation of section one hundred fifty-seven-a, one hundred fifty-seven-b, one hundred fifty-eight or one hundred fifty-eight-a of this article, 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 by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violations; and if it shall appear to the satisfaction of the court or justice that the defendant has, in fact, violated
S. 1793 3
this article, an injunction may be issued by such court or justice, enjoining and restraining any further violation, without requiring proof that any person has, in fact, been injured or damaged thereby. In any such proceeding, the court may make allowances to the attorney general as provided in paragraph six of subdivision (a) of section eighty-three hundred three of the civil practice law and rules, and direct restitution. Whenever the court shall determine that a violation of this article has occurred, the court may impose a civil penalty [of not more than five hundred dollars] based on the amount of financial loss to the consumer whose agreement was the subject of such proceeding for each violation. In connection with any such proposed application, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules.
§ 5. This act shall take effect on the sixtieth day after it shall have become a law and shall apply to all proceedings for violations of article 10-A of the general business law beginning on and after such effective date.
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 travel agreements
Purpose or general idea of bill
To require travel agencies to be more transparent about the terms of their services and to hold them accountable when causing financial harm to consumers.
Summary of specific provisions
Section 1 amends subdivision 1 of section 157-a of the general business law by requiring travel promoters to provide written or electronic disclosure of terms of purchase at the time or prior to receipt of payment. Currently, travel promoters must provide written disclosure within five business days.
Section 2 amends Article 10-A of the general business law by adding a new section 157-b requiring travel consultants to provide written or electronic disclosure of terms of purchase at the time or prior to receipt of payment. Currently, only travel promoters are required to provide such disclosure.
Section 3 amends subdivisions 1 and 2 of section 159 of the general business law by establishing a Class E felony when a travel agency causes a consumer financial loss of five thousand dollars or more.
Section 4 amends subdivision 4 of section 159 of the general business law by allowing a court to impose a civil penalty based on the amount of financial loss to the consumer.
Section 5 establishes the effective date.
Justification
This legislation comes in response to the recent exploitation of hundreds of would-be travelers and their relatives in Chinatown which resulted in losses totaling more than $1 million. Community members expressed difficulty proving they were victims due to lack of service documentation. Current law requires only "travel promoters" to give written disclosure of terms of agreement in five business days. This bill requires all travel agents, "travel promoters" and "travel consultants," to provide written or electronic receipts at the time of purchase for services like travel tickets, so consumers have proof of purchase to help combat fraud.
This legislation also makes penalties more appropriate for the level of fraud when travel agents violate existing law. Deception that leaves consumers, especially those facing language barriers, stranded cannot be tolerated. New York State law must provide greater protections against the fraudulent activities of dishonest travel agencies.
Prior legislative history
2016: S6068 - REFERRED TO CONSUMER PROTECTION 2015: S6068 - REFERRED
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.