New Fuschillo Law Will Raise The Penalties For Companies That Engage In False Advertising

Senator Charles J. Fuschillo, Jr. (8th Senate District) announced today that legislation he sponsored to protect New Yorkers from false advertising and deceptive business practices (S4306) has been signed into law by Governor Eliot Spitzer. Both the State Senate and Assembly passed the legislation in June.

Senator Fuschillo, Chairman of the Senate’s Consumer Protection Committee, said "We must do everything we can to protect consumers from being misled by an unscrupulous business. Higherpenalties will create a stronger deterrent to keep companies from using deception and misinformation to rip off consumers."

The new law raises the maximumpenalty for companies that engage in unfair or deceptive business practices. Businesses that engage in this type of conduct will now face a maximum civilpenalty of $5,000 per violation. The New York State Attorney General has the power to bring civil lawsuits against these businesses to recover damages.

Prior to the passage of this new law, companies faced a maximumpenalty of only $500 per violation.

The new law took effect immediately after it was signed.

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