NY State Senate Bill 2025-S4687

Senate Bill S4687

2025-2026 Legislative Session

Regulates and requires issuance of raincheck by retailer where advertised merchandise is not available for sale

download bill text pdf

Current Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 11, 2025	referred to consumer protection

2025-S4687 (ACTIVE) - Details

See Assembly Version of this Bill:: A3881
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §397-b, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A10778
2011-2012: A443
2013-2014: A1835
2015-2016: A5710
2017-2018: S8046, A7941
2019-2020: S1711, A1498
2021-2022: S4813, A6458
2023-2024: S4130, A4620

2025-S4687 (ACTIVE) - Summary

Mandates that any article of merchandise advertised, and not available throughout advertised period, must be supplied at advertised price by seller within sixty days from the date the purchaser of such article is notified of its availability; specifies terms of raincheck and limited exceptions.

2025-S4687 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4687

SPONSOR: CLEARE
 
TITLE OF BILL:

An act to amend the general business law, in relation to disclosure of
raincheck policies for certain advertised merchandise

 
PURPOSE:

The purpose of this bill is to require retailers to provide a raincheck
to purchasers for the sale of advertised merchandise.

 
SUMMARY OF PROVISIONS:

Section 1 of this bill would amend the General Business Law to require
retailers to provide a raincheck to purchasers for the sale of adver-
tised merchandise under certain conditions. Such rainchecks allow
purchasers to purchase the merchandise at the advertised price for up to
60 days after issuance of the raincheck or for a period of ten business
days from the first date of availability of the article, whichever shall
be later. Additionally, the section requires certain information to be

included on the raincheck and that such raincheck include a notice.

Section 2 of the bill provides that the effective date shall take effect
on the one hundred eightieth day after it shall have become a law.

 
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 wary 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 Commis-
sion policies, New York City regulations, bait advertising guides, and
general orders have not increased compliance 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.

 
LEGISLATIVE HISTORY:

2021-22:S.4813(Reichlin-Melnick) - Referred to Consumer Protection.

2019-20:S.1711(Carlucci)-Referred to Consumer Protection

2017-18:S.8046(Carlucci)- Referred to Consumer Protection

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

2025-S4687 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4687
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 11, 2025
                                ___________
 
 Introduced  by  Sen.  CLEARE -- 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  disclosure  of
   raincheck policies for certain advertised merchandise
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 397-c to read as follows:
   § 397-C. DISCLOSURE OF RAINCHECK POLICY.  1.  FOR THE PURPOSES OF THIS
 SECTION, THE TERM "RAINCHECK" SHALL MEAN A WRITTEN STATEMENT ISSUED BY A
 RETAILER ALLOWING THE PURCHASE OF DESIGNATED MERCHANDISE AT A PREVIOUSLY
 ADVERTISED PRICE.
   2. A RETAILER WHO HAS ADOPTED AS A POLICY THE ISSUANCE OF   RAINCHECKS
 TO CONSUMERS FOR SALE OF ADVERTISED MERCHANDISE NOT AVAILABLE THROUGHOUT
 THE  ADVERTISED  PERIOD  SHALL, CLEARLY AND CONSPICUOUSLY POST ITS RAIN-
 CHECK POLICY:
   (A) IN CLOSE PROXIMITY TO THE CASH REGISTER OR SO SITUATED  AS  TO  BE
 CLEARLY VISIBLE TO THE BUYER AT THE POINT OF SALE;
   (B) ON ITS WEBSITE; AND
   (C) IN ANY ONLINE OR PRINTED ADVERTISEMENTS.
   3.    ANY  RAINCHECK  POLICY  ADOPTED  AND  POSTED BY A RETAILER SHALL
 INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING INFORMATION:
   (A)  NAME, ADDRESS, AND TELEPHONE NUMBER OF THE RETAILER;
   (B)  RETAILER'S WEBSITE AND E-MAIL ADDRESS;
   (C) A STATEMENT THAT READS "ANY RAINCHECK  ISSUED  FOR  AN  ADVERTISED
 ITEM WILL BE HONORED FOR SIXTY DAYS AFTER ISSUANCE".
   4.  ANY  RAINCHECK  ISSUED  UNDER A POLICY ADOPTED BY A RETAILER 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;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01415-01-5

 S. 4687                             2
 
   (D) NAME, DESCRIPTION AND QUANTITY DESIRED OF THE ARTICLE; AND
   (E) THE ADVERTISED PRICE.
   5. THE RAINCHECK ISSUED SHALL CONTAIN THE FOLLOWING NOTICE:
   "YOU  MAY  REDEEM  THIS RAINCHECK FOR THE ADVERTISED ITEM DESCRIBED ON
 THE OTHER SIDE WITHIN SIXTY DAYS OF ISSUANCE.
   YOU WILL PAY ONLY THE ADVERTISED PRICE FOR THE ITEM.
   YOU ARE UNDER NO OBLIGATION TO BUY THE ITEM."
   6. IT SHALL BE UNLAWFUL FOR ANY RETAILER WHO PROVIDES A RAINCHECK  FOR
 ANY ADVERTISED MERCHANDISE WHICH IS NOT AVAILABLE FOR IMMEDIATE PURCHASE
 TO FAIL TO:
   (A)  CLEARLY AND CONSPICUOUSLY POST ITS RAINCHECK POLICY IN ACCORDANCE
 WITH THE REQUIREMENTS OF SUBDIVISION TWO OF THIS SECTION;
   (B) HONOR OR SATISFY THE RAINCHECK WITHIN SIXTY DAYS FROM THE DATE  OF
 ISSUANCE,  PROVIDED  THAT  AFTER  A  GOOD FAITH EFFORT A RETAILER CANNOT
 PROCURE THE ADVERTISED MERCHANDISE WITHIN  THE  SIXTY  DAY  PERIOD,  THE
 RETAILER  MAY  OFFER  THE  HOLDER A SUBSTANTIALLY SIMILAR ARTICLE OF THE
 SAME KIND, QUALITY, AND PRICE OF THE ORIGINAL ADVERTISED MERCHANDISE; OR
   (C) GIVE WRITTEN NOTICE VIA MAIL OR E-MAIL OR NOTICE BY PHONE  TO  THE
 HOLDER OF ANY RAINCHECK WHEN THE MERCHANDISE IS AVAILABLE AND INFORM THE
 HOLDER OF THE RAINCHECK THAT THE ADVERTISED MERCHANDISE WILL BE HELD FOR
 A  PERIOD  OF NO LESS THAN TEN DAYS FROM THE DATE OF NOTIFICATION, OR TO
 THE END OF THE SIXTY DAY PERIOD FOR WHICH THE RAINCHECK IS VALID, WHICH-
 EVER IS LONGER.
   7. 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.
   8. A VIOLATION OF THIS SECTION SHALL BE PUNISHABLE BY A CIVIL  PENALTY
 NOT TO EXCEED TWO HUNDRED FIFTY DOLLARS.
   9. THIS SECTION SHALL NOT APPLY TO A PURCHASE FOR RESALE.
   10.  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.
   11. NO PURCHASER SHALL BE REQUIRED TO PREPAY THE PURCHASE PRICE OR ANY
 PART THEREOF IN ORDER TO OBTAIN A RAINCHECK.
   12.  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 APPLICA-
 BLE STANDARDS IN THIS SECTION.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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