What's happening
This bill requires mercantile establishments attempting civil settlements for larceny to provide clear legal notices and imposes penalties for noncompliance.
Why it matters
Enhances transparency and consumer awareness. by requiring mercantile establishments to provide a clear, standardized legal notice (in conspicuous, larger font or read aloud) when seeking civil settlements for alleged larceny, ensuring individuals understand their rights and potential liabilities.
Clarifies separation of civil and criminal actions. , informing alleged offenders that civil settlements do not automatically preclude criminal prosecution unless explicitly agreed upon—making it harder for establishments to obscure the possibility of future criminal charges.
Imposes strict penalties for noncompliance. If a business fails to provide the required notice, it is strictly liable for any actual damages to the defendant, must pay triple the highest settlement amount sought, and cover legal costs and reasonable attorneys’ fees if the affected individual successfully sues—creating a strong incentive for businesses to comply.
Protects alleged offenders from misleading or coercive practices. by mandating transparency about the legal consequences, including the exact financial penalties and the separate nature of civil and criminal proceedings, thereby reducing the risk of uninformed or pressured settlements.
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Who cares
Headline styles
Retail Settlement Notices Required
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Referred to consumer affairs and protection
- Referred to consumer affairs and 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.
Disclose Civil Lawsuit Warnings
In Senate Committee · Consumer Protection · Sponsor Luis R. Sepúlveda
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3238
2019-2020 Regular Sessions
IN ASSEMBLY
January 29, 2019
Introduced by M. of A. DINOWITZ, LENTOL, MOSLEY, RAIA -- read once and referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to communications by mercantile establishments attempting to settle civil actions deriving from larceny prosecutions
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general business law is amended by adding a new section 349-f to read as follows:
§ 349-f. Civil proceedings derivative of alleged larceny. 1. Whenever a mercantile establishment attempts to settle a civil action pursuant to section 11-105 of the general obligations law, all communications pertaining to such attempted settlement shall contain the following statement, which shall, if written, be in a conspicuous place, in font larger than the remainder of the communication, and, if spoken, read in its entirety:
"This is an attempt to reach a civil settlement agreement resulting from a larceny that allegedly involves you. Should you choose to agree to this settlement, you will be subject to the terms and conditions of such agreement, which are governed by §11-105 of New York State's General Obligations Law.
Should you refuse this agreement, you are still subject to §11-105 of New York State's General Obligations Law, which indicates that persons who commit larceny against the property of a mercantile establishment are civilly liable to such mercantile establishment in the amount of the retail price of the merchandise (only if such merchandise is not recovered in saleable condition), up to $1,500, and a penalty in the amount that is the greater of $75 or five-times the retail price, up to $500. The mercantile establishment may file a civil lawsuit against you to pursue the recovery of these damages. These civil penalties prescribed
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01190-01-9
A. 3238 2
by law are entirely separate from any criminal penalties that may be brought against you.
Should you accept or refuse a civil settlement agreement, a mercantile establishment may still bring criminal charges against you in a court of law, unless such civil settlement agreement between you and the mercantile establishment precludes the mercantile establishment from pursuing criminal charges."
2. A mercantile establishment that violates this section shall be strictly liable for:
(a) Any actual damages sustained by defendant as a result of such failure;
(b) Treble the amount sought by the mercantile establishment in any such settlement agreement. In the case of multiple settlement offers, the amount to be trebled shall be the highest settlement amount sought by such mercantile establishment;
(c) In the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorneys' fee as determined by the court.
§ 2. This act shall take effect immediately and shall apply to any prospective attempted settlements of such civil actions.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.