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This entry was published on 2014-09-22
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SECTION 218-AA
Warranty disclosure
General Business (GBS) CHAPTER 20, ARTICLE 12-B
§ 218-aa. Warranty disclosure. 1. As used in this section, the term
"grey markets merchandise" means any brand-name consumer product
normally accompanied by a warranty valid in the United States of America
which is imported into the United States through channels other than the
manufacturer's authorized United States distributor, for sale to the
public in this state, and which, by reason of this manner of
distribution, may not be accompanied by a manufacturer's express written
warranty valid in the United States. Grey markets merchandise shall be
limited to products purchased by a consumer for use primarily for
personal, family or household purposes.

2. Every retail dealer who knowingly offers for sale grey markets
merchandise shall conspicuously post, in the following manner, the
information required by subdivision three of this section:

a. On a sign attached to the item itself; or

b. On a sign affixed to each cash register or point of sale at which
such goods are offered for sale; or

c. On a sign so situated as to be clearly visible to the buyer from
the register.

3. Every retail dealer who offers for sale grey markets merchandise
shall disclose, as applicable, that either some of the products or a
specific product are not:

a. accompanied by the manufacturer's warranty valid in the United
States; or

b. accompanied by instructions in English; or

c. eligible for a rebate offered by the manufacturer.

4. Every retail dealer or dealer engaged in a mail-order business who
offers for sale grey markets merchandise shall include the disclosure
required by subdivision three of this section in any written
advertisement relating to such product. Such disclosure shall be made in
type of a conspicuous size.

5. Any retail dealer who violates any provision of this section shall
be liable, for a period of up to twenty days from the date of purchase,
to the buyer for a refund or credit on credit-card purchases provided
the product purchased has not been used or damaged by the buyer.

6. Whenever there shall be a violation of this section an application
may be made by the attorney general in the name of the people of the
state of New York to a court or justice having jurisdiction by a special
proceeding to issue an injunction, and upon notice to the defendant of
not less than five days, to enjoin and restrain the continuance of such
violations; and if it shall appear to the satisfaction of the court or
justice that the defendant has, in fact, violated this section, an
injunction may be issued by such court or justice, enjoining and
restraining any further violation, without requiring proof that any
person has, in fact, been injured or damaged thereby. In any such
proceeding, the court may make allowances to the attorney general as
provided in paragraph six of subdivision (a) of section eighty-three
hundred three of the civil practice law and rules, and direct
restitution. Whenever the court shall determine that a violation of this
section has occurred, the court may impose a civil penalty of not more
than five hundred dollars for each violation. In connection with any
such proposed application, the attorney general is authorized to take
proof and make a determination of the relevant facts and to issue
subpoenas in accordance with the civil practice law and rules.

7. Provided, however, that it shall be an affirmative defense that the
consumer is provided with a written warranty which offers equal or
greater protection than the manufacturer's warranty through a warrantor
demonstrated to be a financially responsible retailer, distributor,
importer or other third person capable of fulfilling warranty
obligations.