S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9598
 
                           I N  A S S E M B L Y
 
                              March 26, 2024
                                ___________
 
 Introduced  by  M.  of  A.  ZEBROWSKI  --  read once and referred to the
   Committee on Consumer Affairs and Protection
 
 AN ACT to amend the general business law, in relation to prohibiting the
   practice of surge pricing by chain restaurants
 
   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 section
 391-w to read as follows:
   §  391-W.  SURGE  PRICING PROHIBITED. 1. FOR PURPOSES OF THIS SECTION,
 THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "COVERED ESTABLISHMENT" MEANS A FOOD OR  BEVERAGE  SERVICE  ESTAB-
 LISHMENT  THAT  IS  PART  OF  A  CHAIN  WITH  FIFTEEN  OR MORE LOCATIONS
 NATIONALLY DOING BUSINESS UNDER THE SAME  NAME  AND  OFFERING  FOR  SALE
 SUBSTANTIALLY  THE  SAME MENU ITEMS, OR A BEVERAGE SERVICE ESTABLISHMENT
 OR SIMILAR ESTABLISHMENT THAT IS NOT PART OF SUCH A CHAIN THAT VOLUNTAR-
 ILY REGISTERS WITH THE UNITED STATES FOOD AND DRUG ADMINISTRATION TO  BE
 SUBJECT  TO  THE FEDERAL REQUIREMENTS FOR NUTRITION LABELING OF STANDARD
 MENU ITEMS PURSUANT TO 21 CFR 101.11(D), OR ANY SUCCESSOR REGULATION;
   (B) "DYNAMIC PRICING"  MEANS  THE  PRACTICE  OF  BOTH  INCREASING  AND
 DECREASING  PRICES,  BASED  ON  MARKET CONDITIONS, THE SEASON AND SUPPLY
 CHANGES; AND
   (C) "SURGE PRICING" MEANS THE PRACTICE OF RAISING PRICES  WHEN  DEMAND
 FOR  A  SERVICE  IS  STRONG AND LOWERING PRICES WHEN DEMAND FOR GOODS OR
 SERVICES IS WEAK IN THE ABSENCE OF CHANGES  IN  MARKET  CONDITIONS,  THE
 SEASON AND SUPPLY.
   2.  (A) NO COVERED ESTABLISHMENT SHALL ENGAGE IN THE PRACTICE OF SURGE
 PRICING.
   (B) THE PROVISIONS OF THIS SUBDIVISION SHALL NOT PROHIBIT  THE  IMPLE-
 MENTATION  OF  DYNAMIC  PRICING DURING CERTAIN PERIODS INCLUDING BUT NOT
 LIMITED TO EARLY-BIRD SPECIALS, HAPPY HOURS AND  SEASONAL  SPECIALS,  OR
 FOR PACKAGES AND CATERING SERVICES.
   (C)  THE  IMPOSITION  OF AN ADDITIONAL CHARGE FOR PATRONS USING THIRD-
 PARTY APPS TO ORDER FROM COVERED ESTABLISHMENTS SHALL NOT BE  CONSIDERED
 TO BE A VIOLATION OF THIS SECTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14825-01-4
 A. 9598                             2
 
   3.  A VIOLATION OF THIS SECTION SHALL BE PUNISHABLE BY A CIVIL PENALTY
 OF TWO HUNDRED FIFTY DOLLARS FOR EACH SUCH OCCURRENCE.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.