BILL NUMBER: S5366

SPONSOR: COMRIE
 
TITLE OF BILL:  An act to amend the general business law, in relation
to public notification of tracking return policy

 
PURPOSE:

While current law mandates only the posting of refund policies to safe-
guard consumers' rights, this bill requires stores to publicly post
whether the frequency or volume of a buyer's returns are electronically
tracked.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill adds § 218-b to the general business law that
would require retailers that use electronic systems to record and moni-
tor the frequency and volume of a buyer's return or exchange of goods to
disclose the use of such systems in a clear and conspicuous manner.

Section two of the bill provides the effective date.
              

 
JUSTIFICATION:

According to news reports certain retail merchant's use high tech track-
ing systems that monitor the number of times a customer returns merchan-
dise purchased at their stores. Reports also mentioned that based on
this tracking, stores have limited the option of returning an item by
customers they determined have made returns too frequently. These
reports also raised concerns that ordinary everyday customers seeking to
return merchandise could lose their ability to do so.

While there is no question that retailers face the challenge of prevent-
ing various forms of fraud from shoplifters and price switches, honest
customers are certainly entitled to know the full return policy of
merchants they patronize. This legislation does not seek to hinder the
retail industry's efforts to protect against fraud or other abuse of
their return policies, but seeks to strengthen state law that protects
consumer's rights to return merchandise by requiring full disclosure of
the use of return tracking systems. Similar legislation has been intro-
duced in neighboring states, and New Yorkers as well as New York's econ-
omy deserve the same protections.

 
PRIOR LEGISLATIVE HISTORY:

2017-2018: A.498 - Third Reading Calendar
2015-2016: A.5039 - Third Reading Calendar
2014: A.3377 - Third Reading Calendar
2013: A.3377 - Referred to Rules
2012: A.3010-A - Referred to Rules
2011: A.3010 - Consumer Affairs and Protection
2009-2010: A.3404 - Consumer Affairs and Protection
2007-2008: A.5255 - Consumer Affairs and Protection
2005-2006: A.6549-B - Consumer Affairs and Protection

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
One hundred eighty days after becoming a law.