BILL NUMBER:  S1963

 TITLE OF BILL :  An act to amend the general business law, in
relation to appliance warranties

 PURPOSE :
To provide consumers with adequate notification that any appliance or
electronic equipment which requires repairs covered under a warranty
provided by a retailer may be subjected to "transportation costs" even
if the warranty states the repairs are to be made free of charge.
Problems may arise when a dealer imposes a fee to pick up a defective
appliance (or equipment) if it cannot be repaired in the home and/or
business. This pick up charge should be clearly noted either when a
warranty (extended or otherwise) is provided or purchased, or else in
writing on the warranty itself.

 SUMMARY OF PROVISIONS :
Adds a new section 395-c to the general business law relating to
appliance warranties. Section 1 defines the meaning of "person",
"service dealer" and "appliance" for the purpose of this article.
Section 2 provides that service dealers disclose in writing whether
any change is to be imposed for transportation of an appliance to
and/or from the location where the appliance is located to the place
NO QUERY ENTERED where the repair is to be made.

 JUSTIFICATION :
              

When an individual purchases a large appliance or electronic
equipment, the wording of the warranty (offered by a retailer) may
indicate "lifetime service" for either a small fee or else no cost at
all. An additional warranty may be purchased (extended warranty) to
cover the cost of "parts" for an additional fee. Problems arise when a
dealer imposes a charge to transport the defective equipment back to
the facility if it cannot be repaired in the home and/or business.
This pick up charge should be clearly explained either when the
warranty is purchased or else in writing on the warranty itself.
Furthermore, the possibility of consumer fraud exists if the
technician who is sent to the home to do the repair feels he cannot do
the repair in the home or business. Obviously, the firm undertaking
the repair will benefit financially from the pick up charge if the
appliance/equipment is returned to their repair facility. A consumer
purchasing special or extended warranties assumes that guarantees will
cover all aspects of any repair work, including the pick up and
delivery of the equipment. Presently there is no control over the cost
of this pickup and delivery service. It is arbitrarily set by the
service dealer and no schedule is provided delineating the charges
associated with that transportation. If offered the decision of losing
the use of the appliance/equipment or else paying what may be an
exorbitant amount for pick up and delivery of an appliance requiring
repair, most consumers will have no choice but to pay the repair firm
to pick up their appliance.

 LEGISLATIVE HISTORY :
2000:    S.2296/A.4057 Referred to Consumer Protection.
2001-02: S.2001/A.3336 No action.
2003-04: S.1168/A.2081 No action.
2005-06: S.2554/A.5336 No action.
2007-08: S.2951 Referred to Consumer Protection.

 FISCAL IMPLICATIONS :
None to New York State.

 EFFECTIVE DATE :
Effective ninety days after it shall have become law.