Senate Bill S4114

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4114
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2023
                                ___________
 
 Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Internet and Technology
 
 AN ACT to amend the general business  law  and  the  executive  law,  in
   relation to automated purchasing software
 
   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
 390-e to read as follows:
   §  390-E.  AUTOMATED  PURCHASING  SOFTWARE;  PROHIBITED.  1.  FOR  THE
 PURPOSES  OF  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   (A) "AUTOMATED PURCHASING SOFTWARE" SHALL MEAN  ANY  MACHINE,  DEVICE,
 COMPUTER  PROGRAM  OR  COMPUTER  SOFTWARE THAT, ON ITS OWN OR WITH HUMAN
 ASSISTANCE, BYPASSES SECURITY MEASURES OR ACCESS CONTROL  SYSTEMS  ON  A
 RETAIL  GOODS  PURCHASING  PLATFORM,  OR OTHER CONTROLS OR MEASURES ON A
 RETAIL GOODS PURCHASING PLATFORM, THAT ASSIST IN IMPLEMENTING A LIMIT ON
 THE NUMBER OF ANY SPECIFIC ITEM OF  GOODS  THAT  CAN  BE  PURCHASED,  TO
 PURCHASE ANY SPECIFIC ITEM OF GOODS.
   (B)  "RETAIL  GOODS  PURCHASING  PLATFORM"  SHALL  MEAN A RETAIL GOODS
 PURCHASING WEBSITE, APPLICATION, PHONE SYSTEM, OR OTHER TECHNOLOGY PLAT-
 FORM USED TO SELL GOODS.
   2. (A) IT SHALL BE UNLAWFUL FOR ANY PERSON, FIRM, CORPORATION OR OTHER
 ENTITY TO UTILIZE AUTOMATED PURCHASING SOFTWARE TO PURCHASE GOODS.
   (B) IT SHALL BE UNLAWFUL FOR ANY PERSON, FIRM,  CORPORATION  OR  OTHER
 ENTITY  TO  KNOWINGLY  RESELL  OR OFFER TO RESELL ANY ITEM OF GOODS THAT
 SUCH PERSON, FIRM, CORPORATION OR OTHER ENTITY KNOWS WAS OBTAINED  USING
 AUTOMATED PURCHASING SOFTWARE.
   3.  ANY  PERSON,  FIRM,  CORPORATION  OR  OTHER  ENTITY  WHO KNOWINGLY
 UTILIZES AUTOMATED PURCHASING SOFTWARE IN ORDER TO PURCHASE ANY ITEM  OF
 GOODS  SHALL  BE SUBJECT TO A CIVIL PENALTY IN AN AMOUNT OF NO LESS THAN
 FIVE HUNDRED DOLLARS AND NO MORE THAN ONE THOUSAND FIVE HUNDRED  DOLLARS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08469-01-3
              

 S. 4114                             2
 
 FOR EACH SUCH VIOLATION AND SHALL FORFEIT ALL PROFITS MADE FROM THE SALE
 OF ANY SUCH UNLAWFULLY OBTAINED GOODS.
   4.  ANY  PERSON,  FIRM,  CORPORATION OR OTHER ENTITY WHO INTENTIONALLY
 MAINTAINS ANY INTEREST IN OR MAINTAINS ANY CONTROL OF THE  OPERATION  OF
 AUTOMATED  PURCHASING  SOFTWARE  TO PURCHASE GOODS SHALL BE SUBJECT TO A
 CIVIL PENALTY IN AN AMOUNT OF NO LESS THAN SEVEN HUNDRED  FIFTY  DOLLARS
 AND  NO  MORE  THAN  ONE  THOUSAND  FIVE  HUNDRED  DOLLARS FOR EACH SUCH
 VIOLATION AND SHALL FORFEIT ALL PROFITS MADE FROM THE SALE OF  ANY  SUCH
 UNLAWFULLY OBTAINED GOODS.
   5.  ANY  PERSON, FIRM, CORPORATION OR OTHER ENTITY WHO KNOWINGLY SELLS
 OR OFFERS TO SELL ANY ITEM OF GOODS THAT SUCH PERSON, FIRM,  CORPORATION
 OR  OTHER  ENTITY KNOWS WAS OBTAINED USING AUTOMATED PURCHASING SOFTWARE
 SHALL BE SUBJECT TO A CIVIL PENALTY IN AN AMOUNT OF NO  LESS  THAN  FIVE
 HUNDRED  DOLLARS  AND NO MORE THAN ONE THOUSAND FIVE HUNDRED DOLLARS FOR
 EACH SUCH VIOLATION AND SHALL FORFEIT ALL PROFITS MADE FROM THE SALE  OF
 ANY SUCH UNLAWFULLY OBTAINED GOODS.
   6. ANY PERSON WHO IS SUBJECT TO A CIVIL PENALTY UNDER THIS SECTION AND
 HAS  BEEN  ASSESSED  A  PENALTY UNDER THIS SECTION IN THE PREVIOUS THREE
 YEARS SHALL BE GUILTY OF A VIOLATION AND MAY BE FINED NO LESS  THAN  ONE
 THOUSAND  DOLLARS  AND  NO MORE THAN FIVE THOUSAND DOLLARS FOR EACH SUCH
 VIOLATION AND SHALL FORFEIT ALL PROFITS FROM THE SALE OF ANY SUCH UNLAW-
 FULLY OBTAINED GOODS. IN ADDITION, A PERSON  CONVICTED  OF  A  VIOLATION
 UNDER THIS SECTION MAY BE REQUIRED TO FORFEIT ANY AND ALL EQUIPMENT USED
 IN THE UNLAWFUL PURCHASING OF GOODS.
   7.  THE  CONSUMER PROTECTION DIVISION OF THE DEPARTMENT OF STATE SHALL
 RECEIVE, COMPILE AND FORWARD  TO  THE  ATTORNEY  GENERAL  COMPLAINTS  OF
 VIOLATIONS OF THE PROVISIONS OF THIS SECTION.
   8.  THE  ATTORNEY  GENERAL  SHALL  HAVE  JURISDICTION  TO  ENFORCE THE
 PROVISIONS OF THIS SECTION.
   9. ANY AGGRIEVED PARTY THAT  HAS  BEEN  INJURED  BY  WRONGFUL  CONDUCT
 PRESCRIBED  BY  THIS  SECTION  MAY BRING AN ACTION TO RECOVER ALL ACTUAL
 DAMAGES SUFFERED AS A RESULT OF ANY OF SUCH WRONGFUL CONDUCT. THE  COURT
 IN  ITS  DISCRETION  MAY  AWARD  DAMAGES UP TO THREE TIMES THE AMOUNT OF
 ACTUAL DAMAGES. THE COURT MAY ENJOIN THE RESPONDENT  FROM  ANY  AND  ALL
 ACTIVITY PROHIBITED UNDER THIS SECTION. THE COURT MAY ALSO AWARD REASON-
 ABLE ATTORNEY'S FEES AND COSTS.
   §  2. Subdivision 3 of section 94-a of the executive law is amended by
 adding a new paragraph 13-a to read as follows:
   (13-A) RECEIVE, COMPILE AND FORWARD TO THE ATTORNEY GENERAL COMPLAINTS
 OF VIOLATIONS OF SECTION THREE HUNDRED NINETY-E OF THE GENERAL  BUSINESS
 LAW PROHIBITING THE USE OF AUTOMATED PURCHASING SOFTWARE;
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law.