A09192 Summary:

BILL NOA09192
 
SAME ASSAME AS S07783-B
 
SPONSORLee
 
COSPNSRSteck, Kelles, Gonzalez-Rojas, Colton, Ardila, Magnarelli, Glick, Otis, Davila, McDonough
 
MLTSPNSR
 
Add §396-yy, Gen Bus L
 
Establishes the "New York junk fee prevention act"; requires clear and conspicuous pricing practices regarding trash junk fees.
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A09192 Actions:

BILL NOA09192
 
02/12/2024referred to consumer affairs and protection
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A09192 Committee Votes:

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A09192 Floor Votes:

There are no votes for this bill in this legislative session.
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A09192 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9192
 
                   IN ASSEMBLY
 
                                    February 12, 2024
                                       ___________
 
        Introduced by M. of A. LEE -- read once and referred to the Committee on
          Consumer Affairs and Protection
 
        AN  ACT  to  amend  the  general  business law, in relation to clear and
          conspicuous pricing practices regarding mandatory junk fees
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "New York junk fee prevention act".
     3    § 2. The general business law is amended by adding a new section  396-
     4  yy to read as follows:
     5    §  396-yy.  Junk  fee prevention. 1. For the purposes of this section,
     6  the following terms shall have the following meanings:
     7    (a) (i) "Mandatory fee" includes any fee or surcharge,  additional  to
     8  the price of a good or service, that:
     9    (A)  a  consumer  is  required to pay to purchase or lease any good or
    10  service being advertised;
    11    (B) is not reasonably avoidable to complete the purchase or  lease  of
    12  any good or service being advertised;
    13    (C)  a  reasonable  consumer  would  expect  to  be  included with the
    14  purchase or lease of the good or service being advertised; or
    15    (D) is added by default for the consumer, by the  seller  or  automat-
    16  ically, and requires action by the consumer to remove it;
    17    (ii) "Mandatory fee" shall not include:
    18    (A)  any tax, duty, fee or custom levied by any local, state, federal,
    19  or other governmental or  quasi-governmental  entity,  as  well  as  any
    20  assessment fee of a government-created special district, including busi-
    21  ness improvement districts and tourism improvement districts;
    22    (B) any fee covering the cost of delivering goods, the amount of which
    23  is  based  upon  the  delivery method selected by the consumer, provided
    24  that such amount is  disclosed  to  the  consumer  prior  to  collecting
    25  payment information;
    26    (C)  any  nominal fee for the purpose of pre-authorizing a transaction
    27  that is immediately refunded or removed upon  the  charge  of  the  full
    28  purchase amount; or
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13717-05-4

        A. 9192                             2
 
     1    (D) any optional add-ons or add-on product or service as defined by 16
     2  CFR part 463(a).
     3    (b)  "Total price" shall mean the full price of a good or service that
     4  a consumer must pay, including any and  all  mandatory  fees  associated
     5  with the transaction, but not including any exemptions to mandatory fees
     6  pursuant  to  subdivision  one of this section, in order to complete the
     7  purchase or lease of a good or service.
     8    2.  (a) Any person, firm, partnership, association, corporation or any
     9  agent or employee who solicits or facilitates a purchase directly from a
    10  consumer, or lease of any good or service directly to a consumer, in the
    11  state, shall clearly and conspicuously:
    12    (i) disclose to the consumer in every offer or advertisement  for  the
    13  purchase  or  lease  of a good or service that includes pricing informa-
    14  tion, the total price of the good or service  being  offered  or  adver-
    15  tised,  except  where  the  total  price of the good or service is to be
    16  derived from a variable rate and is indeterminable at the  time  of  the
    17  offer  or  advertisement, disclose such variable rate along with any and
    18  all mandatory fees associated with the transaction; and
    19    (ii) disclose to the consumer any tax, duty, custom,  or  fee  amounts
    20  under  subparagraph  (ii)  of  paragraph  (a) of subdivision one of this
    21  section, prior to accepting payment.
    22    (b) Disclosures of the total price, fees, charges or any component  of
    23  the  total  price  shall  not  be false or misleading, and must by their
    24  font, size, contrast, location, the length  of  time  they  appear,  and
    25  other  characteristics,  be presented prominently and stand out from any
    26  accompanying text or other visual  elements  so  that  they  are  easily
    27  noticed, read, and understood.
    28    3. (a) For every violation of this section, an application may be made
    29  by the attorney general in a court of competent jurisdiction to issue an
    30  injunction, and upon notice to the defendant of not less than five days,
    31  to  enjoin  and  restrain the continuance of such violation. If it shall
    32  appear to the satisfaction of the court that the defendant is, in  fact,
    33  in violation of this section, an injunction may be issued by such court,
    34  enjoining  and  restraining  such action or violation, without requiring
    35  proof that any person has, in fact, been misled or deceived or otherwise
    36  damaged thereby.
    37    (b) The attorney general,  or  any  person  adversely  affected  by  a
    38  violation  of  this  section,  may bring an action against the person or
    39  entity in violation of this section to recover the greater of:
    40    (i) actual damages;
    41    (ii) up to five hundred dollars for each  unintentional  violation  of
    42  this section; or
    43    (iii)  up  to  one  thousand dollars for each intentional, knowing, or
    44  willful violation of this section.
    45    (c) In an action brought pursuant to paragraph (b)  of  this  subdivi-
    46  sion,  the  court may award costs of the action together with reasonable
    47  attorneys' fees to a prevailing plaintiff.
    48    (d) Any action taken under this section pleading a violation  of  this
    49  section  shall  be  exempt from any pre-dispute arbitration clauses that
    50  may bind a consumer who is adversely affected by  a  violation  of  this
    51  section.
    52    (e)  Any agreement relating to the waiver of any provision within this
    53  section shall be deemed void.
    54    (f) Nothing in this section shall in any way limit rights or  remedies
    55  which  are  otherwise available under law to the attorney general or any
    56  other person authorized to bring an action under this section.

        A. 9192                             3
 
     1    4. (a) Compliance by a  person,  firm,  partnership,  association,  or
     2  corporation providing broadband internet access service on its own or as
     3  part  of  a bundle, as defined in section 8.1(b) of title 47 of the code
     4  of federal regulations, with the broadband consumer  label  requirements
     5  adopted  by the federal communications commission in FCC 22-86 on Novem-
     6  ber fourteenth, two thousand twenty-two, codified in section  8.1(a)  of
     7  title  47 of the code of federal regulations, shall be deemed in compli-
     8  ance with this section.
     9    (b) For purposes of this paragraph, "financial institution" shall have
    10  the same meaning as defined in section eight hundred one of  the  finan-
    11  cial  services  law. A financial institution that is required to provide
    12  disclosures in compliance with any of the  following  federal  or  state
    13  acts  or  regulations  with respect to a financial transaction is exempt
    14  from this section for purposes of such financial transaction:
    15    (i) the federal truth in savings act;
    16    (ii) the federal electronic fund transfer act;
    17    (iii) section 19 of the federal reserve act;
    18    (iv) the federal truth in lending act;
    19    (v) the federal real estate settlement procedures act;
    20    (vi) the federal home ownership and equity protection act; or
    21    (vii) any regulation adopted pursuant to any of the  federal  acts  in
    22  subparagraphs (i) through (vi) of this paragraph, inclusive.
    23    (c)  Compliance  with  the notice requirements of section five hundred
    24  eighteen of the general business law by  a  person,  firm,  partnership,
    25  association,  or  corporation  imposing  a surcharge on any sales trans-
    26  action where a consumer elects to use a credit card in lieu  of  payment
    27  by  cash,  check, or similar means, shall be deemed compliance with this
    28  section.
    29    (d) A food service establishment as defined in paragraph (b) of subdi-
    30  vision one of section three hundred ninety-one-v of this  article  shall
    31  be  deemed  compliant with this section if, in every offer or advertise-
    32  ment for the purchase or lease of a good or service that includes  pric-
    33  ing information, the total price of the good or service being offered or
    34  advertised includes a clear and conspicuous disclosure of the percentage
    35  of any automatic and mandatory gratuity to be charged.
    36    5.  (a)  Entities  subject to subdivision four of section 25.07 of the
    37  arts and cultural affairs law shall not be subject to the provisions  of
    38  this section.
    39    (b)  The provisions of this section shall not apply to air transporta-
    40  tion provided by air carriers, as those terms are used in section  41713
    41  of title 49 of the United States code.
    42    §  3. This act shall take effect on the first of January next succeed-
    43  ing the date on which it shall have become a law.
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