What's happening
This bill requires retailers in New York to offer rainchecks for advertised sale items that are out of stock, with specific exceptions and conditions.
Why it matters
Promotes consumer fairness. By requiring rainchecks for out-of-stock sale items (with exceptions), the bill aims to prevent retailers from luring customers with advertised discounts they cannot actually fulfill, addressing a common source of consumer frustration.
Defines clear exceptions and conditions. The bill lays out specific situations where rainchecks do not have to be offered (e.g., one-of-a-kind items, limited stock disclosures, certain agricultural products), which balances consumer protection with retailer practicality and transparency.
Creates enforceable standards and safeguards. The proposed law specifies what information must be on a raincheck, prohibits requiring advance payment for a raincheck, and sets timeframes for redemption—empowering consumers and providing clarity for retailers on compliance.
Maintains flexibility for local governments and retailers. It allows municipalities to enact stricter rules and lets sellers and buyers agree to extend raincheck redemption periods, while also ensuring retailers aren’t penalized if suppliers fail to deliver, provided records are kept—offering a practical approach to implementation.
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Who cares
Headline styles
Require Retailers Give Rainchecks
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
No co-sponsors yet.
History
- Referred to consumer protection
- 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 Retailers Give Rainchecks
Assembly Floor Calendar · Sponsor Sandy Galef
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 1711 A. 1498
2019-2020 Regular Sessions
SENATE - ASSEMBLY
January 15, 2019
IN SENATE -- Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
IN ASSEMBLY -- Introduced by M. of A. GALEF, L. ROSENTHAL, ENGLEBRIGHT, WEPRIN, SEAWRIGHT -- read once and referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to availability for sale of advertised merchandise
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 397-b to read as follows:
§ 397-b. Availability for sale of advertised merchandise. 1. A retailer who advertises an article of merchandise for sale at a price which is reduced, in good faith, to a price below the price such articles are usually sold or offered for sale for in the store, and does not have such article available throughout the advertised period shall, on the request of a purchaser of such article, offer to issue a raincheck unless one or more of the following situations exists:
(a) The advertisement is made in relation to mail order merchandise as regulated by section three hundred ninety-six-m of this article.
(b) The advertisement is of an article that is one of a kind and the advertisement clearly and conspicuously states such fact.
(c) The advertisement clearly and conspicuously states the specific quantity of the article available at the outset of the sale.
(d) The advertisement clearly and conspicuously states that a raincheck is not available. This exclusion may only be used if the article will not be offered for sale for at least one hundred twenty days from the expiration date of the advertisement.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00229-01-9
S. 1711 2 A. 1498
(e) Products defined in subdivision three of section two of the agriculture and markets law shall be excluded from the provisions of this section, provided, however, that any retailer offering for sale or selling such products may issue rainchecks pursuant to this section.
2. A raincheck issued pursuant to subdivision one of this section shall entitle the holder to purchase, at the store issuing such raincheck, the advertised article at the advertised price within sixty days from the date of issuance or for a period of ten business days from the first date of availability of the article, whichever shall be later.
The issuance of such raincheck shall constitute an agreement on the part of the seller to supply such article at such price. Nothing contained herein shall prohibit a seller from offering a similar article of equal or greater value either during the period covered by such advertisement of the article or within sixty days from the date of issuance of the raincheck, or the seller and purchaser from agreeing to lengthen the redemption period of such raincheck. If the purchaser accepts substitution, such substitution shall constitute compliance with the provisions of subdivision one of this section.
3. The raincheck shall include at least the following information:
(a) Name, address and telephone number of the issuer.
(b) Date of issuance.
(c) Last date that the raincheck can be redeemed.
(d) Name, description and quantity desired of the article.
(e) The advertised price.
4. The raincheck shall contain the following notice:
You may redeem this raincheck for the advertised item described on the other side within sixty days of issuance or for a period of ten business days from the first date of availability of the item, whichever shall be later.
You will pay only the advertised price for the item.
You are under no obligation to buy the item.
5. It shall be an affirmative defense to an alleged violation of this section that the seller was unable to honor a raincheck within the redemption period because such seller did not receive a reorder of the advertised article from a supplier through no fault of the seller provided, however, that the seller must maintain records sufficient to show that the advertised sale items were reordered in adequate time for delivery and in sufficient quantity to fulfill raincheck obligations.
6. This section shall not apply to a purchase for resale.
7. Nothing in this section shall be construed to relieve the seller from any other provision of law prohibiting the advertising of goods or services with the intent not to meet reasonably expected demand.
8. No purchaser shall be required to prepay the purchase price or any part thereof in order to obtain a raincheck.
9. Nothing in this section shall be construed to restrict the power of any county, city, town or village to adopt and enforce additional local laws, ordinances, or regulations which exceed the minimum applicable standards in this section.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law.
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 availability for sale of advertised merchandise
Purpose or general idea of bill
This legislation relates to the availability of merchandise at a price lower than it is normally sold for, and outlines a detailed policy in relation to rain-checks.
Summary of provisions
Section 1. The General Business Law is amended by adding a new section 397-b.
Read the full memo (775 words)
§ 397-b. Availability for sale of advertised merchandise. 1. Retailers who advertises merchandise at a reduced price, and do not have the item available during the advertised period, must by the request of a purchaser, offer to issue a rain-check. A few exceptions do apply. 2. The rain-check shall entitle the holder to purchase the advertised arti- cle within 60 days from the date of issuance, or for a period of 10 business days, from the first date of availability of the item, whichev- er shall be later. Substitute items can be offered should the purchaser accept the substitution. 3. The rain-check must include: (a) name, address, and telephone number of issuer, (b) date of issuance, (c) expi- ration date, (d) name, description and quantity of article, and (e) the advertised price. 4. The rain-check must contain the following notice: You may redeem this rain-check for the advertised item described on the other side within sixty days of issuance or for a period of ten business days from the first date of availability of the item, whichever shall be later. You will pay only the advertised price for this item. You are under no obligation to buy the item. 5. It shall be an affirmative defense to an alleged violation if the seller was unable to honor the rain-check because the seller did not receive a reorder from a supplier through no fault of the seller provided, however, that the seller main- tain records sufficient of the situation. 6. This section shall not apply to a purchase for resale. 7. Nothing in this section shall be construed to relieve the seller from any other provision of law prohib- iting the advertising of good or services with the intent not to meet reasonably expected demand. 8. No purchaser shall be required to prepay in order to obtain a rain-check. 9. Nothing in this section shall be construed to restrict the power of any county, city, town or village to adopt and enforce additional laws, which exceed the minimum applicable standards in this section.
Section 2. Establishes the effective date.
Justification
The practice of "bait and switch" advertising which is deceptive within the statutory proscription (as in Section 349 (a) of the General Busi- ness Law) involves an advertisement and offer of a product which is not bona fide because what the merchant actually has on hand and intends to sell is significantly different from that which drew the potential customer in, and, hence, is a practice which does not include conduct of a seller in continually modifying proposed terms of a contract with the buyer as the negotiations proceed. This judicial decision was set forth in GOLDBERG V. MANHATTAN LINCOLN MERCURY 91985), and is taken from McKinney's. Enactment of this law would enable New York State to enforce long-standing Federal Trade Commission regulation and policy, court orders, and a 1972 New York City Regulation on bait advertising.
Although many retailers have implemented rain-check policies with the interests of the consumer in mind, some retailers either do not have policies or employ policies that do not favor the consumer. The result is that many consumers view rain-check policies with jaundiced eyes. The credibility of many retailers' rain-check policies have eroded, creating an industry-wide crisis of confidence.
Neither the consumer nor the retailer wins. Several studies have found that the Federal Trade Commission policies, New York City regulations, bait advertising guides, and general orders have not increased compli- ance with the premise that when supplies of an advertised item will not meet anticipated demand, the advertisement should disclose that fact.
This bill would serve to statutorily recognize these current rules and regulations and provide for greater enforcement of them. Indeed, consum- ers would receive the protection they deserve from deceptive bait and switch advertising.
Prior legislative history
A.7941 and S.8046 of2017/2018 A.5710 of 2015/2016 A.1835-A of 2013/2014 A.443 of 2011/2012 A.10778 and S. 4445 of 2009/2010
Fiscal implications for state and local governments
There are no fiscal implications associated with the passage of this legislation.
Effective date
This act shall take effect on the one hundred eightieth day after it shall have become a law.
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