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

                                  7562

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             April 14, 2009
                               ___________

Introduced  by M. of A. PHEFFER, EDDINGTON, STIRPE, KOON, ALESSI, SPANO,
  RUSSELL, RAMOS, FIELDS, MILLMAN -- Multi-Sponsored  by  --  M.  of  A.
  BING,  CASTRO, COOK, CYMBROWITZ, DelMONTE, DINOWITZ, GABRYSZAK, GLICK,
  GORDON, GOTTFRIED, HOOPER, HYER-SPENCER,  JAFFEE,  MAISEL,  MAYERSOHN,
  McENENY,  REILLY,  ZEBROWSKI -- (at request of the Consumer Protection
  Board) -- read once and referred to the Committee on Consumer  Affairs
  and Protection

AN  ACT  to  amend  the  general  business law, in relation to requiring
  greater disclosure by stores of their refund policies

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Sections 217 and 218-a of the general business law, section
217  as  added  by chapter 1005 of the laws of 1960 and section 218-a as
added by chapter 870 of the  laws  of  1977,  are  amended  to  read  as
follows:
  S  217.  Definition. [For the purpose of] AS USED IN this article, THE
FOLLOWING WORDS AND PHRASES SHALL HAVE THE FOLLOWING MEANINGS:
  1. [the term "retail] "RETAIL mercantile establishment" shall  mean  a
place  where  goods,  wares or merchandise are offered to the public for
sale.
  2. "RESTOCKING FEE" SHALL MEAN ANY AMOUNT  CHARGED  BY  A  SELLER  FOR
ACCEPTING RETURNED MERCHANDISE AND PAYING A REFUND OR CREDIT.
  S  218-a.  Disclosure  of  refund policies. 1. Every retail mercantile
establishment shall conspicuously post, in  the  following  manner,  its
refund  policy  as  to  all  goods,  wares or merchandise offered to the
public for sale:
  (a) on a sign attached to the item itself; or
  (b) on a sign affixed to each cash register or point of sale; or
  (c) on a sign so situated as to be clearly visible to the  buyer  from
the cash register; or
  (d) on a sign posted at each store entrance used by the public.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08147-01-9
              

A. 7562                             2

  2.  The sign, required by subdivision one of this section to be posted
in every retail mercantile establishment, shall (A) state whether or not
it is the policy of such establishment to give refunds and, if so, under
what conditions, including but not limited to whether a refund  will  be
given:
  [(a)]  (I) on merchandise which had been advertised as "sale" merchan-
dise or marked "as is;"
  [(b)] (II) on merchandise for which no proof of purchase exists;
  [(c)] (III) at any time or not beyond a point in time specified; [or
  (d)] (IV) in cash, or as credit or store credit only; OR
  (V) SUBJECT TO ANY FEES, INCLUDING A RESTOCKING FEE, AND THE DOLLAR OR
PERCENTAGE AMOUNT OF EACH FEE; AND
  (B) ADVISE CONSUMERS THAT THEY ARE ENTITLED TO A WRITTEN COPY  OF  THE
STORE'S REFUND POLICY UPON REQUEST.
  3. Enforcement. Any retail mercantile establishment which violates any
provision  of this section shall be liable, for a period of up to [twen-
ty] THIRTY days from the date of purchase,  to  the  buyer  for  a  cash
refund or a credit, at the buyer's option, provided that the merchandise
has  not  been used or damaged by the buyer AND THE BUYER CAN VERIFY THE
DATE OF THE PURCHASE WITH A RECEIPT OR ANY OTHER  PURCHASE  VERIFICATION
METHOD UTILIZED BY THE RETAIL MERCHANT.
  4.  [The  provisions  of  subdivision  one  shall  not apply to retail
mercantile establishments or departments that have a policy  of  provid-
ing,  for  a  period  of  not  less  than  twenty days after the date of
purchase, a cash refund for a cash purchase or providing a  cash  refund
or  issuing  a  credit for a credit purchase, which credit is applied to
the account on which the purchase was debited, in  connection  with  the
return of its unused and undamaged merchandise.
  5.] Preemption. This section does not relieve any person, firm, corpo-
ration  or  association  subject  to the provisions of this section from
complying with any law, ordinance, rule or regulation  of  any  locality
relating  to  the  posting  of  refund  policies which affords the buyer
greater protection than do the provisions of this section.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law.