senate Bill S392

Provides that sellers of goods on the internet may not debit a charge account until goods are shipped or must credit the account if debited before

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 07 / Jan / 2009
    • REFERRED TO CONSUMER PROTECTION
  • 06 / Jan / 2010
    • REFERRED TO CONSUMER PROTECTION

Summary

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Bill Details

See Assembly Version of this Bill:
A1031
Versions:
S392
Legislative Cycle:
2009-2010
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law

Sponsor Memo

BILL NUMBER: S392

TITLE OF BILL :
An act to amend the general business law, in relation to charge
accounts used in the purchase of mail-order or telephone-order
merchandise

PURPOSE :
To protect the interest of the consumer by prohibiting credit card
accounts from being billed until the time that the purchased goods are
shipped.

SUMMARY OF PROVISIONS :
This legislation amends Section 396-m to ensure that sellers of goods
via mail-order, telephone-order or the internet are prohibited from
charging the buyer's credit card account until such time as the goods
are shipped.

JUSTIFICATION :
Section 396-m of the General Business Law relates to mail-order and
telephone order and internet sales. It provides that no such business
may accept an order for merchandise which is not reasonably
anticipated to be available for shipment within 30 days of the date
the seller debits the buyer's account. It further qualifies the above
in the event that the seller elects to be governed by a provision
which provides that when the seller is unable to ship the goods within
the specified time frame, due to circumstances beyond their control,
they send a notice to the customer stating the expected delay,
providing the customer with the choice to cancel the order and receive
a refund, be shipped the merchandise at a later date, or accept
substitute merchandise.

This legislation recognizes that there are situations beyond the
control of the seller and amends Section 396-m i (i) to provide that,
if the seller becomes aware that the item cannot be shipped within 30
days, they are prohibited from charging the customer's account until
such time as the merchandise is shipped. Consumers who shop for goods
through mail-order, telephone-order or the internet should not be
responsible for paying for those goods until such time as the goods
are shipped.

LEGISLATIVE HISTORY :
2007/2008 - S.818 Remained in the Senate Committee on Consumer
Protection/A.1535 Remained in the Assembly Consumer Affairs and
Protection Committee
2005/2006 - S.532 Remained in the Senate Committee on Consumer
Protection/A.959 Remained in the Assembly Consumer Affairs and
Protection Committee
2003/2004 - S.213 Remained in Senate Consumer Protection
Committee/A.342 Remained in the Assembly Consumer Protection Committee
2001/2002 - S.1981 Remained in Senate Consumer Protection Committee

FISCAL IMPLICATIONS :
None.

EFFECTIVE DATE :
This act shall take effect on the first of November next succeeding
the date on which it shall have become a law.
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