Assembly Bill A10561

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10561

                          I N  A S S E M B L Y

                              April 7, 2010
                               ___________

Introduced  by M. of A. GALEF -- read once and referred to the Committee
  on Consumer Affairs and Protection

AN ACT to amend the general business law, in relation to the honest  use
  of refund and rebate forms act

  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 article
32-A to read as follows:
                               ARTICLE 32-A
                HONEST USE OF REFUND AND REBATE FORMS ACT
SECTION 676. SHORT TITLE.
        677. DEFINITIONS.
        678. DISPLAY OF EXPIRED MANUFACTURER'S REFUND AND  REBATE  FORMS
               PROHIBITED.
        679. AVAILABILITY OF MANUFACTURER'S REFUND OR REBATE FORMS.
        679-A. PENALTIES.
        679-B. AFFIRMATIVE DEFENSES.
  S  676.  SHORT  TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "HONEST USE OF REFUND AND REBATE FORMS ACT".
  S 677. DEFINITIONS. WHENEVER USED IN THIS ARTICLE:
  (A) "MANUFACTURER'S REFUND" SHALL MEAN A RETURN OF THE TOTAL  PURCHASE
PRICE BY A MANUFACTURER TO A PURCHASER OF AN ITEM.
  (B) "MANUFACTURER'S REBATE" SHALL MEAN A RETURN BY A MANUFACTURER TO A
PURCHASER OF AN ITEM OF ANY PORTION OF THE SALES PRICE OR OF A SPECIFIED
MONETARY AMOUNT.
  (C)  "FORM" SHALL MEAN THE AUTHORIZED FORM REQUIRED TO BE COMPLETED BY
THE PURCHASER OF AN ITEM AS A PREREQUISITE TO A MANUFACTURER'S REFUND OR
REBATE.
  S 678. DISPLAY OF  EXPIRED  MANUFACTURER'S  REFUND  AND  REBATE  FORMS
PROHIBITED.  (A) IT SHALL BE UNLAWFUL FOR ANY PERSON, FIRM, PARTNERSHIP,
CORPORATION OR ASSOCIATION: (I) TO CAUSE TO BE ADVERTISED BY MEANS OF  A
NEWSPAPER  ADVERTISEMENT,  CIRCULAR,  TELEVISION  OR RADIO ANNOUNCEMENT,
OFF-THE-PREMISES PROMOTION OR OTHERWISE, THE AVAILABILITY OF; OR (II) TO
DISPLAY, PROMOTE OR DISTRIBUTE WITHIN THE PREMISES OF A RETAIL STORE  OR

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

                                                           LBD16410-01-0

A. 10561                            2

OTHERWISE  MAKE  AVAILABLE  THEREIN  ANY MANUFACTURER'S REFUND OR REBATE
FORM WHICH HAS EXPIRED AND WHICH WILL NOT BE HONORED BY THE MANUFACTURER
AS A RESULT OF SUCH EXPIRATION.
  (B)  THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION SHALL NOT APPLY
TO PERSONS, FIRMS, CORPORATIONS OR ASSOCIATIONS WHICH  POST  MANUFACTUR-
ER'S  REFUND  OR REBATE FORMS ON A BULLETIN BOARD NEAR A STORE ENTRANCE,
PROVIDED THAT SUCH BULLETIN BOARD IS MAINTAINED WITH  A  PROMINENT  SIGN
CONSPICUOUSLY  POSTED  ON  OR ADJACENT TO THE BULLETIN BOARD, CONTAINING
SUBSTANTIALLY THE FOLLOWING  LEGEND  IN  CLEAR  AND  CONSPICUOUS  PRINT:
"PLEASE NOTE: THIS STORE IS NOT RESPONSIBLE FOR EXPIRED REFUND OR REBATE
OFFERS  POSTED  HERE. PLEASE CHECK THE EXPIRATION DATE ON YOUR FORM." IN
THE ABSENCE OF THE REQUIRED SIGN, THE PROVISIONS OF SUBDIVISION  (A)  OF
THIS SECTION SHALL APPLY TO ANY PERSON, FIRM, CORPORATION OR ASSOCIATION
WHICH MAINTAINS SUCH A BULLETIN BOARD.
  (C)  PERSONS, FIRMS, CORPORATIONS OR ASSOCIATIONS SHALL NOT BE HELD TO
THE PROVISIONS OF SUBDIVISION (A) OF THIS  SECTION  WHEN  MANUFACTURER'S
REFUNDS  OR  REBATES ARE PRINTED ON OR CONTAINED WHOLLY WITHIN PACKAGES,
OR WHICH ARE CONTAINED ON THE INSIDE OF PRODUCT LABELS OR OTHERWISE  ARE
NOT READILY VISIBLE TO THE CONSUMER.
  S  679. AVAILABILITY OF MANUFACTURER'S REFUND OR REBATE FORMS. (A) ANY
PERSON, FIRM, PARTNERSHIP, CORPORATION OR ASSOCIATION: (I) WHICH  CAUSES
TO  BE ADVERTISED BY MEANS OF A NEWSPAPER ADVERTISEMENT, CIRCULAR, TELE-
VISION OR RADIO ANNOUNCEMENT OR OFF-THE-PREMISES PROMOTION OR OTHERWISE,
THE AVAILABILITY OF; OR (II) WHICH  DISPLAYS,  PROMOTES  OR  DISTRIBUTES
WITHIN THE PREMISES OF A RETAIL STORE OR OTHERWISE MAKES AVAILABLE THER-
EIN  A  MANUFACTURER'S  REFUND  OR  REBATE FORM SHALL MAKE AVAILABLE THE
APPROPRIATE MANUFACTURER'S REFUND OR REBATE FORM TO THE PURCHASER AT THE
TIME OF SALE.
  (B) A SELLER MAY, AT ITS DISCRETION, OFFER A SUBSTITUTE TO A  MANUFAC-
TURER'S  REFUND  OR  REBATE  TO  THE  PURCHASER.  IN SUCH A CASE, SUCH A
SUBSTITUTE OFFER SHALL BE DEEMED A SUBSTITUTE REFUND OR REBATE  IN  FULL
SATISFACTION  OF  THE PROVISIONS OF THIS ARTICLE: (I) WHEN AUTHORIZED BY
THE MANUFACTURER, OR (II) IF ACCEPTED BY THE PURCHASER.
  S 679-A. PENALTIES. (A) ANY PERSON, FIRM, CORPORATION  OR  ASSOCIATION
VIOLATING  A  PROVISION  OF  SECTION  SIX  HUNDRED  SEVENTY-EIGHT OR SIX
HUNDRED SEVENTY-NINE OF THIS ARTICLE SHALL BE SUBJECT TO A CIVIL PENALTY
OF NOT LESS THAN ONE HUNDRED DOLLARS AND  NOT  MORE  THAN  ONE  THOUSAND
DOLLARS.
  (B)  FOR THE PURPOSES OF THIS SECTION, THE UNLAWFUL DISPLAY OF A GROUP
OF IDENTICAL REFUND OR REBATE FORMS SHALL CONSTITUTE A SINGLE VIOLATION,
AND THE UNLAWFUL DISPLAY OF DIFFERENT  GROUPS  OF  IDENTICAL  REFUND  OR
REBATE  FORMS  SHALL  CONSTITUTE  SEPARATE  VIOLATIONS FOR EACH GROUP SO
DISPLAYED.
  S 679-B. AFFIRMATIVE DEFENSES. IT SHALL BE AN AFFIRMATIVE DEFENSE TO A
VIOLATION OF SECTION SIX HUNDRED SEVENTY-NINE OF THIS  ARTICLE  IF:  (I)
THE  SELLER  CAN  DEMONSTRATE  THAT  HE OR SHE HAD AN ADEQUATE NUMBER OF
REFUND OR REBATE FORMS SUFFICIENT TO MEET REASONABLY  ANTICIPATED  NEEDS
FOR SUCH FORMS DURING THE PARTICULAR OFFER; OR (II) THE MANUFACTURER CAN
DEMONSTRATE THAT AN ADEQUATE NUMBER OF REFUND OR REBATE FORMS SUFFICIENT
TO  MEET  REASONABLY ANTICIPATED NEEDS FOR SUCH FORMS DURING THE PARTIC-
ULAR OFFER WAS MADE AVAILABLE TO SELLERS PARTICIPATING IN SUCH OFFER.
  S 2. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.