S T A T E   O F   N E W   Y O R K
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                                  8536

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 27, 2009
                               ___________

Introduced  by  M.  of A. CALHOUN, BALL, ERRIGO, FINCH, McDONOUGH, RAIA,
  TOWNSEND, WALKER -- Multi-Sponsored by  --  M.  of  A.  HAWLEY,  MENG,
  SAYWARD,  WEISENBERG  --  read  once  and referred to the Committee on
  Consumer Affairs and Protection

AN ACT to amend the general business law, in relation  to  false  adver-
  tisements  and  providing  that  any  rebates  be given at the time of
  purchase

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 3 of section 350-a of the general business law,
as  added  by  chapter  107  of  the laws of 1994, is amended to read as
follows:
  3. It shall constitute false advertising to:  (A) display or announce,
in print or broadcast advertising, the price of an item after  deduction
of  a  rebate unless the actual selling price is displayed or announced,
and clear and conspicuous notice is given in the  advertisement  that  a
mail-in rebate is required to achieve the lower net price[.];
  (B)  ADVERTISE  THE  PRICE OF MERCHANDISE OR SERVICE AS FREE BY USE OF
THE WORD "FREE" OR ANY OTHER TERM OF SIMILAR IMPORT WHEN THE MERCHANDISE
OR SERVICE IS NOT, IN FACT, FREE;
  (C) ADVERTISE THE PRICE OF MERCHANDISE OR SERVICE AS A REDUCED OR SALE
PRICE, OR COMPARE THE PRICE TO A PREVIOUS PRICE  UNLESS  THE  ADVERTISED
PRICE  IS  LOWER THAN THE ACTUAL, BONA FIDE PRICE FOR WHICH THE MERCHAN-
DISE OR SERVICE WAS OFFERED TO THE PUBLIC ON  A  REGULAR  BASIS  BY  THE
ADVERTISER,  FOR  A  REASONABLY  SUBSTANTIAL PERIOD OF TIME PRIOR TO THE
ADVERTISEMENT OR AS A DISCOUNT PRICE, UNLESS  THE  ADVERTISED  PRICE  IS
LOWER  THAN  THE PRICE BEING CHARGED FOR THE SAME MERCHANDISE OR SERVICE
BY OTHER SELLERS IN THE AREA; PROVIDED, HOWEVER, IN THE CASE  OF  A  NEW
PRODUCT, IF THE ADVERTISED PRICE IS LESS THAN THE PRICE WHICH THE ADVER-
TISER,  IN GOOD FAITH, EXPECTS TO CHARGE AFTER TERMINATION OF THE INTRO-
DUCTORY SALE, THERE IS NO VIOLATION  OF  THIS  SUBDIVISION.  THE  ACTUAL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11692-02-9
              

A. 8536                             2

PRICE  AFTER  THE  SALE SHALL BE EVIDENCE OF THE ADVERTISER'S GOOD FAITH
EXPECTATIONS;
  (D)  ADVERTISE  THE PRICE OF ANY MERCHANDISE AS BELOW COST, UNLESS THE
PRICE IS, IN  FACT,  BELOW  THE  COST  FOR  WHICH  THE  MERCHANDISE  WAS
PURCHASED AND PREPARED FOR SALE BY THE ADVERTISER; AND
  (E)  ADVERTISE MERCHANDISE OR SERVICE AS FREE OR THE PRICE OF MERCHAN-
DISE OR A SERVICE AS A DISCOUNT, REDUCED, OR SALE PRICE  IF  RECEIPT  OF
SUCH  MERCHANDISE  OR  SERVICE  IS CONTINGENT UPON THE PURCHASE OF OTHER
MERCHANDISE OR SERVICE AT A PRICE WHICH IS HIGHER THAN THE ACTUAL,  BONA
FIDE PRICE AT WHICH THE MERCHANDISE OR SERVICE WAS OFFERED TO THE PUBLIC
ON A REGULAR BASIS BY THE ADVERTISER FOR A REASONABLY SUBSTANTIAL PERIOD
OF TIME PRIOR TO THE ADVERTISEMENT, OR AT A PRICE WHICH IS SUBSTANTIALLY
HIGHER  THAN THE PRICE BEING CHARGED FOR THE SAME MERCHANDISE OR SERVICE
BY OTHER SELLERS IN THE AREA; PROVIDED, HOWEVER, IN THE CASE  OF  A  NEW
PRODUCT, IF THE ADVERTISED PRICE IS LESS THAN THE PRICE WHICH THE ADVER-
TISER,  IN GOOD FAITH, EXPECTS TO CHARGE AFTER TERMINATION OF THE INTRO-
DUCTORY SALE, THERE IS NO VIOLATION  OF  THIS  SUBDIVISION.  THE  ACTUAL
PRICE  AFTER  THE  SALE SHALL BE EVIDENCE OF THE ADVERTISER'S GOOD FAITH
EXPECTATIONS.
  S 2. The general business law is amended by adding a new section 399-i
to read as follows:
  S 399-I. REBATE GIVEN AT TIME OF PURCHASE. WHENEVER THE  PRICE  OF  AN
ITEM  AFTER  DEDUCTION OF A REBATE IS DISPLAYED OR ANNOUNCED IN PRINT OR
BROADCAST ADVERTISING, SUCH PRICE AFTER DEDUCTION SHALL  BE  GRANTED  AT
THE TIME OF PURCHASE.
  S 3. This act shall take effect immediately.