Provides that a false representation of affiliation or approval, or false implication of such affiliation or approval, of any official, state or local agencies or other official source, shall be false advertising.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4575
SPONSOR: Fall TITLE OF BILL:
An act to amend the general business law, in relation to false represen-
tation of affiliation or approval of state or local agencies
PURPOSE OR GENERAL IDEA OF BILL:
To clarify that the prohibition on false or misleading advertising in
New York State's General Business Law includes a false impression of
government correspondence
SUMMARY OF PROVISIONS:
Section one of this bill amends Section 350-a of the General Business
Law to provide that false impressions of official government correspond-
ence shall be considered false advertising and prohibited under Article
22-a of GBL, which declares deceptive acts and practices unlawful.
Section two of this bill sets the effective date.
JUSTIFICATION:
New York's landmark consumer protection law; Article 22-A of the General
Business Law, renders deceptive "acts or practices in the conduct of any
business, trade or commerce or in the furnishing of any service" unlaw-
ful. Any person or firm in violation of this statute is subject to a
state right of action from the Attorney General, a private right of
action from injured parties, and civil penalties.
The law makes specific mention of certain nefarious practices and
tactics such as pension poaching for Veterans Affairs benefits and
deceitful marketing by energy service companies (ESCOs). It also
provides an additional civil penalty of up to $10,000 for persons or
firms who willfully target seniors, in recognition of the vulnerable
nature of this subset of consumers.
Missing from this statute, however, is an express prohibition on commer-
cial correspondence which purports to be affiliated with a government
entity. Examples of for-profit companies disguising sales pitches as
official and urgent government correspondence, from notices that a prop-
erty tax bill may be about to increase to declarations that a consumer
has been found eligible for Medicaid, abound. These predatory mailers
will frequently target senior citizens, who may have trouble reading the
fine print on the back of the envelope which clarifies that the mail is
not affiliated with a government agency at all. While federal rules
issued by the Federal Trade Commission ban false or misleading represen-
tations of governmental authority for debt collectors, there is no such
blanket prohibition for other industries.
This bill would amend New York's General Business Law to clarify that
mail which willfully creates a false impression of official correspond-
ence is considered false advertising and subject to all penalties there-
in described.
It is the sponsor's hope that this change if enacted would better
protect seniors from predatory advertising while encouraging companies
to be clearer and more forthright about the products or services they
are selling.
PRIOR LEGISLATIVE HISTORY:
02/03/23 referred to consumer affairs and protection
01/03/24 referred to consumer affairs and protection
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law.
