What's happening
This bill requires mercantile establishments to include a specific disclosure when seeking civil settlements for larceny and imposes penalties for noncompliance.
Why it matters
Enhances transparency for accused individuals. By mandating a standard, prominent disclosure, the bill ensures that people accused of larceny fully understand their civil liability, the terms of settlement, and the distinction between civil and criminal consequences. This can help prevent confusion or coercion in settlement communications.
Imposes strict penalties for noncompliance. If businesses fail to include the required disclosure, they are strictly liable for actual damages, must pay triple the highest amount they sought in settlement, and cover the defendant's legal costs and attorney fees. This creates a strong incentive for businesses to follow the law and protects consumers from improper or misleading settlement tactics.
Clarifies the relationship between civil settlements and criminal charges. The required disclosure makes it explicit that accepting or rejecting a civil settlement does not, by default, prevent criminal prosecution, unless specifically stated. This clarity helps individuals make more informed decisions about whether to settle civilly.
Potentially deters aggressive or predatory settlement practices. By introducing specific language and consequences, the bill aims to curb exploitative practices by some retailers or their agents who may otherwise pressure accused individuals into unfair or hasty settlements without clear information or recourse.
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Who cares
Headline styles
Disclose Civil Lawsuit Warnings
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 32
1 Co-sponsor
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.
Retail Settlement Notices Required
In Assembly Committee · Consumer Affairs And Protection · Sponsor Jeffrey Dinowitz
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4210
2019-2020 Regular Sessions
IN SENATE
March 4, 2019
Introduced by Sen. SEPULVEDA -- 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 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
S. 4210 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.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to communications by mercantile establishments attempting to settle civil actions deriving from larceny prosecutions
Purpose or general idea of bill
The purpose of this bill is to inform consumers that a settlement related to a larceny prosecution will not have any effect on any crimi- nal actions arising from the same event that lead to the civil action
Summary of provisions
Section 1 adds a new section 349-f to the general business law that requires a mercantile establishment that is attempting to settle a civil action that is derived from a criminal prosecution provides a notice to a consumer in any correspondence related to a possible settlement that explains that a settlement of the civil action will not have any effect on any criminal actions arising from the events that lead to the civil action. The section provides the exact statement a mercantile establish- ment must provide in writing or read to a consumer if the communication is spoken.
Section 1 also allows for treble damages, as well as costs and attor- ney's fees as determined by a court.
Section 2 sets the effective date
Justification
There has been a series of articles recently highlighting deceptive practices that merchants and retailers are using to punish shoplifters. Section 11-105 of the general obligation law allows for civil penalties for anyone who commits larceny as defined by paragraph (a) of subdivi- sion two of section 155.05 of the penal law and clearly outlines the rights a merchant or retailer has in pursuing the civil action. However, many merchants have initiated communication, both written and verbal, with those who have committed larceny to attempt to settle out of court. These communications have been found to be deceptive in that they often allege a civil suit will be filed that the merchant has no intention of filing, they are often sent by third parties who have been retained to represent the merchant to collect a penalty. They also mislead consumers to believe that should they settle the civil action they will be freed from any future criminal proceeding which is not the case.
This legislation would require a specific and explicit notice be provided in any form of communication that the communication is an attempt to settle the civil action related to a criminal prosecution that the consumer has a right to refuse or accept, and that acceptance or refusal of the offer will have no impact on any criminal action aris- ing from the event that led to the civil action. Furthermore the notice will inform the consumer that refusing the settlement may result in civil litigation.
Prior legislative history
2017-18: A.5231- Third Reading Calendar 2015-16: A.402-A -Third Reading Calendar 2013-14: A.9478 -Third Reading Rules Calendar
Fiscal implications
None to the State
Effective date
This act shall take effect immediately and shall apply to any prospec- tive attempted settlements of such civil actions.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.