BILL NUMBER:S5017A

TITLE OF BILL:  An act to amend the general business law, in relation
to requiring any business that offers extended warranties to provide
the consumer statistical data concerning how many times the extended
warranty has to be utilized by consumers for that particular product,
an explanation as to the reason the extended warranty was utilized,
and if there were any instances in which the extended warranty was not
honored by the business

SUMMARY OF PROVISIONS:

Section One of the bill amends the General Business law to add a new
section, 349-f which states that any corporation or other business
entity operating within the State that offers extended warranties on
products purchased by or provided to consumers located in the State
shall make available on its website statistical data, compiled
annually, of how many times the extended warranty has been utilized by
consumers for each product for which an extended warranty is offered,
together with an explanation as to the reason the extended warranty
was utilized, and, if there are any instances in which the extended
warranty was not honored information as to the number of times the
warranty was not honored and an explanation of the reasons why it was
not honored.

EXISTING LAW:
              

Currently, businesses in New York do not have to share with consumers
statistical data about their extended warranty services.

JUSTIFICATION:

There is no uniform standard of what an "extended warranty" means in
the State of New York. Consumers are often given the opportunity to
purchase an extended warranty, sometimes for hundreds of dollars, when
buying a major appliance (such as a refrigerator), an electronic
device, or a motor vehicle (new or used). While these types of
"durable goods" typically come with manufacturers' warranties, the
warranties may be limited in scope. An extended warranty may cover
parts and labor not included in the manufacturer's warranty and may
even extend the manufacturer's warranty for a longer period of time.

Many times a consumer has no information on which to judge if the
extended warranty is likely to be needed, and has limited information
as to what the extended warranty actually covers. Under current law
there is no reliable way for the consumer to ascertain the statistical
data needed to make an informed decision on whether or not to purchase
an extended warranty.

This bill will help New York consumers by requiring any business that
offers extended warranties to provide on its website the statistical
data concerning how many times the extended warranty has been utilized
by consumers for each particular product, an explanation as to the
reasons the extended warranty was utilized, and information about any
instances in which the extended warranty was not honored by the
business.


LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

None to the State of New York.

LOCAL FISCAL IMPLICATIONS:

None to the State of New York.

EFFECTIVE DATE:

This act shall take effect on the first of January next succeeding the
date upon which it shall become a law.