NY State Senate Bill 2023-S7783B

Current Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 06, 2024	referred to consumer affairs and protection delivered to assembly passed senate
Jan 31, 2024	amended on third reading 7783b
Jan 17, 2024	advanced to third reading
Jan 16, 2024	2nd report cal.
Jan 09, 2024	1st report cal.113
Jan 03, 2024	referred to consumer protection
Dec 22, 2023	print number 7783a
Dec 22, 2023	amend and recommit to rules
Dec 01, 2023	referred to rules

Votes

- Feb 6, 2024 - Floor Vote
  S7783B
  
  53
  
  Aye
  
  9
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Feb 6, 2024
      
      aye (53)
      
      Addabbo Jr.
      
      Bailey
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Thomas
      
      Webb
      
      Weber
      
      Weik
      
      nay (9)
      
      Ashby
      
      Borrello
      
      Helming
      
      Martins
      
      Mattera
      
      Ortt
      
      Palumbo
      
      Stec
      
      Tedisco
      
      excused (1)
      
      Walczyk
  Jan 9, 2024 - Consumer Protection Committee Vote
  S7783B
  
  5
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Consumer Protection Committee Vote: Jan 9, 2024
      
      aye (5)
      
      Brouk
      
      Gonzalez
      
      Kavanagh
      
      Myrie
      
      Thomas
      
      aye wr (2)
      
      Canzoneri-Fitzpatrick
      
      Weber

Bill Amendments

Original

B (Active)

co-Sponsors

View additional co-sponsors

2023-S7783 - Details

See Assembly Version of this Bill:: A9192
Current Committee:: Assembly Consumer Affairs And Protection
Law Section:: General Business Law
Laws Affected:: Add §396-yy, Gen Bus L

2023-S7783 - Summary

Establishes the "New York junk fee prevention act"; requires clear and conspicuous pricing practices regarding trash junk fees.

2023-S7783 - Sponsor Memo

                                 
BILL NUMBER: S7783

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the general business law, in relation to clear and
conspicuous pricing practices regarding mandatory junk fees

 
PURPOSE:

To eliminate hidden junk fees by requiring sellers to display the total
price of a good or service, inclusive of all mandatory fees.

 
SUMMARY OF PROVISIONS:

Section one refers to the title of the act, the "New York Junk Fee
Prevention Act."

Section two amends the general business law by adding a new section
396-yy, which includes three subsections. Subsection 1 defines "mandato-
ry fee" while making exceptions for taxes and certain delivery fees. It
also defines "total price" as the full price that a consumer must pay,

inclusive of all mandatory fees associated with the transaction.
Subsection 2 requires any person or entity doing business in the state
to clearly and conspicuously display the total price of a good or
service, inclusive of all mandatory fees, in every offer or advertise-
ment, not just toward the end of the payment process. Subsection 3
relates to the enforcement of this section, authorizing the attorney
general to bring actions and seek injunctions. It also allows private
individuals adversely affected by violations of this section to sue for
damages.

Section three amends the general business law by adding a new section
349-g, which lists new deceptive pricing methods related to junk fees.
Such methods shall be deemed deceptive practices within the meaning of
section 349 and be enforced as such.

Section four relates to the effective date.

 
JUSTIFICATION:

Consumers have become all too familiar with the hidden costs of junk
fees. Rarely can someone complete a transaction without getting hit with
a service fee, fulfillment fee, convenience fee, or some other hidden
charge. These junk fees raise the prices of everything from concert
tickets and hotel bookings to car rentals and internet services.

Junk fees are particularly frustrating not just because they make things
more expensive but also because they are imposed on consumers in unfair
and deceptive ways. Rather than disclose all mandatory fees up front -
thus making it clear what the total price will be at the outset - compa-
nies lure customers in with a seemingly low price tag, then surprise
them with added fees at the end of the payment process.  By keeping
these charges hidden, companies have made it more difficult to compare
prices and search for the best deals, leading many consumers to surren-
der to an artificially inflated price.

In addition to harming consumers, junk fees place honest businesses at a
competitive disadvantage. Companies that immediately disclose the total
price of their products inclusive of all mandatory fees - will often
lose customers to bad faith actors who advertise a lower charge but
actually charge more. By allowing junk fees to proliferate, the market
ends up rewarding companies that engage in predatory bait-and-switch
tactics while punishing those that are transparent with consumers.

The actual, total price of a good or service should never come as a
surprise; it should be clearly and conspicuously displayed from the
outset, accounting for all mandatory fees from the very beginning of the
transaction. This would empower shoppers to assess their options more
efficiently and make better-informed decisions. It would also bring some
much-needed fairness into our free-market system. By cracking down on
deceptive advertising practices and requiring transparent pricing, this
bill will finally do away with junk fees and provide both consumers and
businesses much-needed relief.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
LOCAL FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become law.

2023-S7783 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7783
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             December 1, 2023
                                ___________
 
 Introduced  by Sens. GIANARIS, SKOUFIS, HOYLMAN-SIGAL, MAY, SEPULVEDA --
   read twice and ordered printed, and when printed to  be  committed  to
   the Committee on Rules
 
 AN  ACT  to  amend  the  general  business law, in relation to clear and
   conspicuous pricing practices regarding mandatory junk fees

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "New York junk fee prevention act".
   § 2. The general business law is amended by adding a new section  396-
 yy to read as follows:
   §  396-YY.  JUNK  FEE  PREVENTION. 1. DEFINITIONS. FOR THE PURPOSES OF
 THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) (I) "MANDATORY FEE" INCLUDES:
   (A) ANY FEE OR SURCHARGE  THAT  A  CONSUMER  IS  REQUIRED  TO  PAY  TO
 PURCHASE OR LEASE ANY GOOD OR SERVICE BEING ADVERTISED;
   (B)  ANY FEE OR SURCHARGE THAT IS NOT REASONABLY AVOIDABLE TO COMPLETE
 THE PURCHASE OR LEASE OF ANY GOOD OR SERVICE BEING ADVERTISED;
   (C) ANY FEE OR SURCHARGE FOR ANY GOOD OR  SERVICE  THAT  A  REASONABLE
 CONSUMER  WOULD  EXPECT TO BE INCLUDED WITH THE PURCHASE OR LEASE OF THE
 GOOD OR SERVICE BEING ADVERTISED; AND
   (D) ANY OTHER FEE OR SURCHARGE DETERMINED APPROPRIATE BY THE  ATTORNEY
 GENERAL.
   (II) "MANDATORY FEE" SHALL NOT INCLUDE:
   (A)  ANY  TAX, DUTY, OR CUSTOM LEVIED BY ANY LOCAL, STATE, FEDERAL, OR
 OTHER GOVERNMENTAL ENTITY; AND
   (B) ANY FEE COVERING THE COST OF DELIVERING GOODS, THE AMOUNT OF WHICH
 IS BASED UPON THE DELIVERY METHOD SELECTED  BY  THE  CONSUMER,  PROVIDED
 THAT  SUCH  AMOUNT  IS  DISCLOSED  TO  THE  CONSUMER  PRIOR TO ACCEPTING
 PAYMENT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13717-02-3
 S. 7783                             2

 
   (B) "TOTAL PRICE" SHALL MEAN THE FULL PRICE THAT A CONSUMER MUST  PAY,
 INCLUDING ANY AND ALL MANDATORY FEES ASSOCIATED WITH THE TRANSACTION, IN
 ORDER TO COMPLETE THE PURCHASE OR LEASE OF A GOOD OR SERVICE.
   2. CLEAR AND CONSPICUOUS PRICING. ANY PERSON, FIRM, PARTNERSHIP, ASSO-
 CIATION,  OR  CORPORATION  DOING  BUSINESS IN THE STATE, OR ANY AGENT OR
 EMPLOYEE THEREOF, SHALL CLEARLY  AND  CONSPICUOUSLY  DISPLAY,  IN  EVERY
 OFFER  AND ADVERTISEMENT FOR THE SALE OR LEASE OF A GOOD OR SERVICE, THE
 TOTAL PRICE OF THE GOOD OR SERVICE BEING OFFERED OR ADVERTISED.
   3. ENFORCEMENT. (A) FOR EVERY VIOLATION OF THIS SECTION,  AN  APPLICA-
 TION  MAY BE MADE BY THE ATTORNEY GENERAL IN A COURT OF COMPETENT JURIS-
 DICTION TO ISSUE AN INJUNCTION, AND UPON NOTICE TO THE DEFENDANT OF  NOT
 LESS  THAN  FIVE  DAYS,  TO  ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH
 VIOLATION. IF IT SHALL APPEAR TO THE SATISFACTION OF THE COURT THAT  THE
 DEFENDANT  IS,  IN FACT, IN VIOLATION OF THIS SECTION, AN INJUNCTION MAY
 BE ISSUED BY SUCH  COURT,  ENJOINING  AND  RESTRAINING  SUCH  ACTION  OR
 VIOLATION,  WITHOUT  REQUIRING  PROOF THAT ANY PERSON HAS, IN FACT, BEEN
 MISLED OR DECEIVED OR OTHERWISE DAMAGED THEREBY.
   (B) THE ATTORNEY GENERAL,  OR  ANY  PERSON  ADVERSELY  AFFECTED  BY  A
 VIOLATION  OF  THIS  SECTION,  MAY BRING AN ACTION AGAINST THE PERSON OR
 ENTITY IN VIOLATION OF THIS SECTION TO RECOVER THE GREATER OF:
   (I) ACTUAL DAMAGES;
   (II) UP TO FIVE HUNDRED DOLLARS FOR EACH  UNINTENTIONAL  VIOLATION  OF
 THIS SECTION; OR
   (III)  UP  TO  ONE  THOUSAND DOLLARS FOR EACH INTENTIONAL, KNOWING, OR
 WILLFUL VIOLATION OF THIS SECTION.
   (C) IN AN ACTION BROUGHT PURSUANT TO PARAGRAPH (B)  OF  THIS  SUBDIVI-
 SION,  THE  COURT MAY AWARD COSTS OF THE ACTION TOGETHER WITH REASONABLE
 ATTORNEYS' FEES TO A PREVAILING PLAINTIFF.
   (D) THE RIGHT OF ACTION AVAILABLE UNDER  THIS  SUBDIVISION  IS  EXEMPT
 FROM ANY PRE-DISPUTE ARBITRATION CLAUSES THAT MAY BIND A CONSUMER WHO IS
 ADVERSELY AFFECTED BY A VIOLATION OF THIS SECTION.
   (E)  ANY AGREEMENT RELATING TO THE WAIVER OF ANY PROVISION WITHIN THIS
 SECTION SHALL BE DEEMED VOID.
   (F) NOTHING IN THIS SECTION SHALL IN ANY WAY LIMIT RIGHTS OR  REMEDIES
 WHICH  ARE  OTHERWISE AVAILABLE UNDER LAW TO THE ATTORNEY GENERAL OR ANY
 OTHER PERSON AUTHORIZED TO BRING AN ACTION UNDER THIS SECTION.
   § 3. The general business law is amended by adding a new section 349-g
 to read as follows:
   § 349-G. DECEPTIVE PRICING  METHODS.  THE  FOLLOWING  PRICING  METHODS
 WHICH RESULT IN THE SALE OR LEASE OF ANY GOOD OR SERVICE SHALL BE DEEMED
 A  DECEPTIVE  PRACTICE  PURSUANT  TO SECTION THREE HUNDRED FORTY-NINE OF
 THIS ARTICLE:
   1. ADVERTISING OR OTHERWISE DISPLAYING THE PRICE OF A GOOD OR  SERVICE
 WITHOUT  CLEARLY  AND  CONSPICUOUSLY  DISPLAYING THE TOTAL PRICE OF SUCH
 GOOD OR SERVICE, INCLUDING ANY AND ALL MANDATORY  FEES  ASSOCIATED  WITH
 THE TRANSACTION;
   2.  SELLING  A  GOOD OR SERVICE, OR DISPLAYING A GOOD OR SERVICE BEING
 SOLD BY A THIRD PARTY, WITHOUT CLEARLY AND CONSPICUOUSLY DISCLOSING  THE
 PORTION  OF  THE PURCHASE PRICE THAT REPRESENTS A MANDATORY FEE PRIOR TO
 ACCEPTING PAYMENT FOR SUCH GOOD OR SERVICE;
   3. LEASING A GOOD OR SERVICE, OR DISPLAYING A GOOD  OR  SERVICE  BEING
 LEASED  BY  A  THIRD PARTY, WITHOUT CLEARLY AND CONSPICUOUSLY DISCLOSING
 THE PORTION OF THE LEASING PRICE THAT REPRESENTS A MANDATORY  FEE  PRIOR
 TO ACCEPTING PAYMENT FOR SUCH GOOD OR SERVICE;
   4.  MAKING A FALSE OR MISLEADING DISCLOSURE OF SUBTOTALS, FEES, CHARG-
 ES, OR ANY OTHER COMPONENT OF THE TOTAL PRICE OF A GOOD OR SERVICE;
 S. 7783                             3
 
   5. PRESENTING SUBTOTALS, FEES, CHARGES, OR  OTHER  COMPONENTS  OF  THE
 TOTAL  PRICE  OF  THE GOOD OR SERVICE LESS PROMINENTLY OR IN A FONT SIZE
 THAT IS SMALLER THAN THE FONT SIZE USED TO PRESENT THE  TOTAL  PRICE  OF
 THE GOOD OR SERVICE; AND
   6.  INCREASING  THE  PRICE  OF  A GOOD OR SERVICE AFTER A CONSUMER HAS
 SELECTED THE GOOD OR SERVICE FOR PURCHASE OR LEASE.
   § 4. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.

co-Sponsors

View additional co-sponsors

2023-S7783A - Details

See Assembly Version of this Bill:: A9192
Current Committee:: Assembly Consumer Affairs And Protection
Law Section:: General Business Law
Laws Affected:: Add §396-yy, Gen Bus L

2023-S7783A - Summary

Establishes the "New York junk fee prevention act"; requires clear and conspicuous pricing practices regarding trash junk fees.

2023-S7783A - Sponsor Memo

                                 
BILL NUMBER: S7783A

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the general business law, in relation to clear and
conspicuous pricing practices regarding mandatory junk fees

 
PURPOSE:

To eliminate hidden junk fees by requiring sellers to display the total
price of a good or service, inclusive of all mandatory fees.

 
SUMMARY OF PROVISIONS:

Section one refers to the title of the act, the "New York Junk Fee
Prevention Act."

Section two amends the general business law by adding a new section
396-yy, which includes three subsections. Subsection 1 defines "mandato-
ry fee" while making exceptions for taxes and certain delivery fees. It
also defines "total price" as the full price that a consumer must pay,

inclusive of all mandatory fees associated with the transaction.
Subsection 2 requires any person or entity doing business in the state
to clearly and conspicuously display the total price of a good or
service, inclusive of all mandatory fees, in every offer or advertise-
ment, not just toward the end of the payment process. Subsection 3
relates to the enforcement of this section, authorizing the attorney
general to bring actions and seek injunctions. It also allows private
individuals adversely affected by violations of this section to sue for
damages.

Section three relates to the effective date.

 
JUSTIFICATION:

Consumers have become all too familiar with the hidden costs of junk
fees. Rarely can someone complete a transaction without getting hit with
a service fee, fulfillment fee, convenience fee, or some other hidden
charge. These junk fees raise the prices of everything from concert
tickets and hotel bookings to car rentals and Internet services.

In addition to harming consumers, junk fees place honest businesses at a
competitive disadvantage. Companies that immediately disclose the total
price of their products inclusive of all mandatory fees - will often
lose customers to bad faith actors who advertise a lower charge but
actually charge more. By allowing junk fees to proliferate, the market
ends up rewarding companies that engage in predatory bait-andswitch
tactics while punishing those that are transparent with consumers.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
LOCAL FISCAL IMPLICATIONS:
 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become law.

2023-S7783A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7783--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             December 1, 2023
                                ___________
 
 Introduced  by  Sens.  GIANARIS, SKOUFIS, CHU, GOUNARDES, HOYLMAN-SIGAL,
   MAY, RAMOS, SEPULVEDA -- read twice  and  ordered  printed,  and  when
   printed  to  be  committed  to  the  Committee  on  Rules -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee

 AN ACT to amend the general business  law,  in  relation  to  clear  and
   conspicuous pricing practices regarding mandatory junk fees
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York junk fee prevention act".
   §  2. The general business law is amended by adding a new section 396-
 yy to read as follows:
   § 396-YY. JUNK FEE PREVENTION. 1. DEFINITIONS.  FOR  THE  PURPOSES  OF
 THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) (I) "MANDATORY FEE" INCLUDES:
   (A)  ANY  FEE  OR  SURCHARGE  THAT  A  CONSUMER  IS REQUIRED TO PAY TO
 PURCHASE OR LEASE ANY GOOD OR SERVICE BEING ADVERTISED;
   (B) ANY FEE OR SURCHARGE THAT IS NOT REASONABLY AVOIDABLE TO  COMPLETE
 THE PURCHASE OR LEASE OF ANY GOOD OR SERVICE BEING ADVERTISED;
   (C)  ANY  FEE  OR  SURCHARGE FOR ANY GOOD OR SERVICE THAT A REASONABLE
 CONSUMER WOULD EXPECT TO BE INCLUDED WITH THE PURCHASE OR LEASE  OF  THE
 GOOD OR SERVICE BEING ADVERTISED; AND
   (D)  ANY OTHER FEE OR SURCHARGE DETERMINED APPROPRIATE BY THE ATTORNEY
 GENERAL.
   (II) "MANDATORY FEE" SHALL NOT INCLUDE:
   (A) ANY TAX, DUTY, OR CUSTOM LEVIED BY ANY LOCAL, STATE,  FEDERAL,  OR
 OTHER GOVERNMENTAL ENTITY; AND
   (B) ANY FEE COVERING THE COST OF DELIVERING GOODS, THE AMOUNT OF WHICH
 IS  BASED  UPON  THE  DELIVERY METHOD SELECTED BY THE CONSUMER, PROVIDED

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13717-03-3
 S. 7783--A                          2

 
 THAT SUCH AMOUNT  IS  DISCLOSED  TO  THE  CONSUMER  PRIOR  TO  ACCEPTING
 PAYMENT.
   (B)  "TOTAL PRICE" SHALL MEAN THE FULL PRICE THAT A CONSUMER MUST PAY,
 INCLUDING ANY AND ALL MANDATORY FEES ASSOCIATED WITH THE TRANSACTION, IN
 ORDER TO COMPLETE THE PURCHASE OR LEASE OF A GOOD OR SERVICE.
   2. CLEAR AND CONSPICUOUS PRICING. ANY PERSON, FIRM, PARTNERSHIP, ASSO-
 CIATION, OR CORPORATION DOING BUSINESS IN THE STATE,  OR  ANY  AGENT  OR
 EMPLOYEE  THEREOF,  SHALL  CLEARLY  AND  CONSPICUOUSLY DISPLAY, IN EVERY
 OFFER AND ADVERTISEMENT FOR THE SALE OR LEASE OF A GOOD OR SERVICE,  THE
 TOTAL PRICE OF THE GOOD OR SERVICE BEING OFFERED OR ADVERTISED.
   3.  ENFORCEMENT.  (A) FOR EVERY VIOLATION OF THIS SECTION, AN APPLICA-
 TION MAY BE MADE BY THE ATTORNEY GENERAL IN A COURT OF COMPETENT  JURIS-
 DICTION  TO ISSUE AN INJUNCTION, AND UPON NOTICE TO THE DEFENDANT OF NOT
 LESS THAN FIVE DAYS, TO ENJOIN AND  RESTRAIN  THE  CONTINUANCE  OF  SUCH
 VIOLATION.  IF IT SHALL APPEAR TO THE SATISFACTION OF THE COURT THAT THE
 DEFENDANT IS, IN FACT, IN VIOLATION OF THIS SECTION, AN  INJUNCTION  MAY
 BE  ISSUED  BY  SUCH  COURT,  ENJOINING  AND  RESTRAINING SUCH ACTION OR
 VIOLATION, WITHOUT REQUIRING PROOF THAT ANY PERSON HAS,  IN  FACT,  BEEN
 MISLED OR DECEIVED OR OTHERWISE DAMAGED THEREBY.
   (B)  THE  ATTORNEY  GENERAL,  OR  ANY  PERSON  ADVERSELY AFFECTED BY A
 VIOLATION OF THIS SECTION, MAY BRING AN ACTION  AGAINST  THE  PERSON  OR
 ENTITY IN VIOLATION OF THIS SECTION TO RECOVER THE GREATER OF:
   (I) ACTUAL DAMAGES;
   (II)  UP  TO  FIVE HUNDRED DOLLARS FOR EACH UNINTENTIONAL VIOLATION OF
 THIS SECTION; OR
   (III) UP TO ONE THOUSAND DOLLARS FOR  EACH  INTENTIONAL,  KNOWING,  OR
 WILLFUL VIOLATION OF THIS SECTION.
   (C)  IN  AN  ACTION BROUGHT PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVI-
 SION, THE COURT MAY AWARD COSTS OF THE ACTION TOGETHER  WITH  REASONABLE
 ATTORNEYS' FEES TO A PREVAILING PLAINTIFF.
   (D)  THE  RIGHT  OF  ACTION AVAILABLE UNDER THIS SUBDIVISION IS EXEMPT
 FROM ANY PRE-DISPUTE ARBITRATION CLAUSES THAT MAY BIND A CONSUMER WHO IS
 ADVERSELY AFFECTED BY A VIOLATION OF THIS SECTION.
   (E) ANY AGREEMENT RELATING TO THE WAIVER OF ANY PROVISION WITHIN  THIS
 SECTION SHALL BE DEEMED VOID.
   (F)  NOTHING IN THIS SECTION SHALL IN ANY WAY LIMIT RIGHTS OR REMEDIES
 WHICH ARE OTHERWISE AVAILABLE UNDER LAW TO THE ATTORNEY GENERAL  OR  ANY
 OTHER PERSON AUTHORIZED TO BRING AN ACTION UNDER THIS SECTION.
   §  3.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.

co-Sponsors

View additional co-sponsors

2023-S7783B (ACTIVE) - Details

See Assembly Version of this Bill:: A9192
Current Committee:: Assembly Consumer Affairs And Protection
Law Section:: General Business Law
Laws Affected:: Add §396-yy, Gen Bus L

2023-S7783B (ACTIVE) - Summary

Establishes the "New York junk fee prevention act"; requires clear and conspicuous pricing practices regarding trash junk fees.

2023-S7783B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7783B

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the general business law, in relation to clear and
conspicuous pricing practices regarding mandatory junk fees

 
PURPOSE:

To eliminate hidden junk fees by requiring sellers to display the total
price of a good or service, inclusive of all mandatory fees.

 
SUMMARY OF PROVISIONS:

Section one refers to the title of the act, the "New York Junk Fee
Prevention Act."

Section two amends the general business law by adding a new section
396-yy, which includes three subsections.

Subsection 1 defines "mandatory fee" while making certain exceptions.

It also defines "total price" as the full price that a consumer must
pay, inclusive of all mandatory fees associated with the transaction.

Subsection 2 requires any person or entity who solicits or facilitates a
purchase directly from a consumer to clearly and conspicuously display
the total price of a good or service, inclusive of all mandatory fees,
in every offer or advertisement in most circumstances, and disclosure of
mandatory fee exceptions prior to accepting payment.

Subsection 3 relates to the enforcement of this section, authorizing the
attorney general to bring actions and seek injunctions. It also allows
private individuals adversely affected by violations of this section to
sue for damages.

Subsection 4 sets forth compliance for those: providing broadband in
complying with the relevant federal regulations; financial institutions
which comply with listed federal standards; those imposing surcharges on
sales transactions where a consumer elects to use a credit card instead
of other payment means; and food service establishments which display
the percentage of automatic and mandatory gratuity to be charged.

Subsection 5 provides that those subject to subdivision four of section
25.07 of the arts and cultural affairs law, and air carriers, shall not
be subject to the provisions of this section.

Section three relates to the effective date.

 
JUSTIFICATION:

Consumers have become all too familiar with the hidden costs of junk
fees. Rarely can someone complete a transaction without getting hit with
a service fee, fulfillment fee, convenience fee, or some other hidden
charge. These junk fees raise the prices of everything from concert
tickets and hotel bookings to car rentals and internet services.

In addition to harming consumers, junk fees place honest businesses at a
competitive disadvantage. Companies that immediately disclose the total
price of their products inclusive of all mandatory fees - will often
lose customers to bad faith actors who advertise a lower charge but
actually charge more. By allowing junk fees to proliferate, the market
ends up rewarding companies that engage in predatory bait-and- switch
tactics while punishing those that are transparent with consumers.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
LOCAL FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law.

2023-S7783B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7783--B
     Cal. No. 113
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             December 1, 2023
                                ___________
 
 Introduced   by   Sens.   GIANARIS,  SKOUFIS,  CHU,  COMRIE,  FERNANDEZ,
   GOUNARDES, HOYLMAN-SIGAL, JACKSON, MAY, RAMOS, SEPULVEDA -- read twice
   and ordered printed, and when printed to be committed to the Committee
   on Rules -- committee discharged, bill amended, ordered  reprinted  as
   amended  and  recommitted  to  said  committee  --  recommitted to the
   Committee on Consumer Protection in accordance  with  Senate  Rule  6,
   sec. 8 -- reported favorably from said committee, ordered to first and
   second  report,  ordered  to  a  third  reading,  amended  and ordered
   reprinted, retaining its place in the order of third reading
 
 AN ACT to amend the general business  law,  in  relation  to  clear  and
   conspicuous pricing practices regarding mandatory junk fees
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York junk fee prevention act".
   §  2. The general business law is amended by adding a new section 396-
 yy to read as follows:
   § 396-YY. JUNK FEE PREVENTION. 1. FOR THE PURPOSES  OF  THIS  SECTION,
 THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  (I)  "MANDATORY FEE" INCLUDES ANY FEE OR SURCHARGE, ADDITIONAL TO
 THE PRICE OF A GOOD OR SERVICE, THAT:
   (A) A CONSUMER IS REQUIRED TO PAY TO PURCHASE OR  LEASE  ANY  GOOD  OR
 SERVICE BEING ADVERTISED;
   (B)  IS  NOT REASONABLY AVOIDABLE TO COMPLETE THE PURCHASE OR LEASE OF
 ANY GOOD OR SERVICE BEING ADVERTISED;
   (C) A REASONABLE  CONSUMER  WOULD  EXPECT  TO  BE  INCLUDED  WITH  THE
 PURCHASE OR LEASE OF THE GOOD OR SERVICE BEING ADVERTISED; OR
   (D)  IS  ADDED  BY DEFAULT FOR THE CONSUMER, BY THE SELLER OR AUTOMAT-
 ICALLY, AND REQUIRES ACTION BY THE CONSUMER TO REMOVE IT;
   (II) "MANDATORY FEE" SHALL NOT INCLUDE:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13717-04-4

 S. 7783--B                          2
 
   (A) ANY TAX, DUTY, FEE OR CUSTOM LEVIED BY ANY LOCAL, STATE,  FEDERAL,
 OR  OTHER  GOVERNMENTAL  OR  QUASI-GOVERNMENTAL  ENTITY,  AS WELL AS ANY
 ASSESSMENT FEE OF A GOVERNMENT-CREATED SPECIAL DISTRICT, INCLUDING BUSI-
 NESS IMPROVEMENT DISTRICTS AND TOURISM IMPROVEMENT DISTRICTS;
   (B) ANY FEE COVERING THE COST OF DELIVERING GOODS, THE AMOUNT OF WHICH
 IS  BASED  UPON  THE  DELIVERY METHOD SELECTED BY THE CONSUMER, PROVIDED
 THAT SUCH AMOUNT IS  DISCLOSED  TO  THE  CONSUMER  PRIOR  TO  COLLECTING
 PAYMENT INFORMATION;
   (C)  ANY  NOMINAL FEE FOR THE PURPOSE OF PRE-AUTHORIZING A TRANSACTION
 THAT IS IMMEDIATELY REFUNDED OR REMOVED UPON  THE  CHARGE  OF  THE  FULL
 PURCHASE AMOUNT; OR
   (D) ANY OPTIONAL ADD-ONS OR ADD-ON PRODUCT OR SERVICE AS DEFINED BY 16
 CFR PART 463(A).
   (B)  "TOTAL PRICE" SHALL MEAN THE FULL PRICE OF A GOOD OR SERVICE THAT
 A CONSUMER MUST PAY, INCLUDING ANY AND  ALL  MANDATORY  FEES  ASSOCIATED
 WITH THE TRANSACTION, BUT NOT INCLUDING ANY EXEMPTIONS TO MANDATORY FEES
 PURSUANT  TO  SUBDIVISION  ONE OF THIS SECTION, IN ORDER TO COMPLETE THE
 PURCHASE OR LEASE OF A GOOD OR SERVICE.
   2.  (A) ANY PERSON, FIRM, PARTNERSHIP, ASSOCIATION, CORPORATION OR ANY
 AGENT OR EMPLOYEE WHO SOLICITS OR FACILITATES A PURCHASE DIRECTLY FROM A
 CONSUMER, OR LEASE OF ANY GOOD OR SERVICE DIRECTLY TO A CONSUMER, IN THE
 STATE, SHALL CLEARLY AND CONSPICUOUSLY:
   (I) DISCLOSE TO THE CONSUMER IN EVERY OFFER OR ADVERTISEMENT  FOR  THE
 PURCHASE  OR  LEASE  OF A GOOD OR SERVICE THAT INCLUDES PRICING INFORMA-
 TION, THE TOTAL PRICE OF THE GOOD OR SERVICE  BEING  OFFERED  OR  ADVER-
 TISED,  EXCEPT  WHERE  THE  TOTAL  PRICE OF THE GOOD OR SERVICE IS TO BE
 DERIVED FROM A VARIABLE RATE AND IS INDETERMINABLE AT THE  TIME  OF  THE
 OFFER  OR  ADVERTISEMENT, DISCLOSE SUCH VARIABLE RATE ALONG WITH ANY AND
 ALL MANDATORY FEES ASSOCIATED WITH THE TRANSACTION; AND
   (II) DISCLOSE TO THE CONSUMER ANY TAX, DUTY, CUSTOM,  OR  FEE  AMOUNTS
 UNDER  SUBPARAGRAPH  (II)  OF  PARAGRAPH  (A) OF SUBDIVISION ONE OF THIS
 SECTION, PRIOR TO ACCEPTING PAYMENT.
   (B) DISCLOSURES OF THE TOTAL PRICE, FEES, CHARGES OR ANY COMPONENT  OF
 THE  TOTAL  PRICE  SHALL  NOT  BE FALSE OR MISLEADING, AND MUST BY THEIR
 FONT, SIZE, CONTRAST, LOCATION, THE LENGTH  OF  TIME  THEY  APPEAR,  AND
 OTHER  CHARACTERISTICS,  BE PRESENTED PROMINENTLY AND STAND OUT FROM ANY
 ACCOMPANYING TEXT OR OTHER VISUAL  ELEMENTS  SO  THAT  THEY  ARE  EASILY
 NOTICED, READ, AND UNDERSTOOD.
   3. (A) FOR EVERY VIOLATION OF THIS SECTION, AN APPLICATION MAY BE MADE
 BY THE ATTORNEY GENERAL IN A COURT OF COMPETENT JURISDICTION TO ISSUE AN
 INJUNCTION, AND UPON NOTICE TO THE DEFENDANT OF NOT LESS THAN FIVE DAYS,
 TO  ENJOIN  AND  RESTRAIN THE CONTINUANCE OF SUCH VIOLATION. IF IT SHALL
 APPEAR TO THE SATISFACTION OF THE COURT THAT THE DEFENDANT IS, IN  FACT,
 IN VIOLATION OF THIS SECTION, AN INJUNCTION MAY BE ISSUED BY SUCH COURT,
 ENJOINING  AND  RESTRAINING  SUCH ACTION OR VIOLATION, WITHOUT REQUIRING
 PROOF THAT ANY PERSON HAS, IN FACT, BEEN MISLED OR DECEIVED OR OTHERWISE
 DAMAGED THEREBY.
   (B) THE ATTORNEY GENERAL,  OR  ANY  PERSON  ADVERSELY  AFFECTED  BY  A
 VIOLATION  OF  THIS  SECTION,  MAY BRING AN ACTION AGAINST THE PERSON OR
 ENTITY IN VIOLATION OF THIS SECTION TO RECOVER THE GREATER OF:
   (I) ACTUAL DAMAGES;
   (II) UP TO FIVE HUNDRED DOLLARS FOR EACH  UNINTENTIONAL  VIOLATION  OF
 THIS SECTION; OR
   (III)  UP  TO  ONE  THOUSAND DOLLARS FOR EACH INTENTIONAL, KNOWING, OR
 WILLFUL VIOLATION OF THIS SECTION.
 S. 7783--B                          3
 
   (C) IN AN ACTION BROUGHT PURSUANT TO PARAGRAPH (B)  OF  THIS  SUBDIVI-
 SION,  THE  COURT MAY AWARD COSTS OF THE ACTION TOGETHER WITH REASONABLE
 ATTORNEYS' FEES TO A PREVAILING PLAINTIFF.
   (D)  ANY  ACTION TAKEN UNDER THIS SECTION PLEADING A VIOLATION OF THIS
 SECTION SHALL BE EXEMPT FROM ANY PRE-DISPUTE  ARBITRATION  CLAUSES  THAT
 MAY  BIND  A  CONSUMER  WHO IS ADVERSELY AFFECTED BY A VIOLATION OF THIS
 SECTION.
   (E) ANY AGREEMENT RELATING TO THE WAIVER OF ANY PROVISION WITHIN  THIS
 SECTION SHALL BE DEEMED VOID.
   (F)  NOTHING IN THIS SECTION SHALL IN ANY WAY LIMIT RIGHTS OR REMEDIES
 WHICH ARE OTHERWISE AVAILABLE UNDER LAW TO THE ATTORNEY GENERAL  OR  ANY
 OTHER PERSON AUTHORIZED TO BRING AN ACTION UNDER THIS SECTION.
   4.  (A)  COMPLIANCE  BY  A  PERSON, FIRM, PARTNERSHIP, ASSOCIATION, OR
 CORPORATION PROVIDING BROADBAND INTERNET ACCESS SERVICE ON ITS OWN OR AS
 PART OF A BUNDLE, AS DEFINED IN SECTION 8.1(B) OF TITLE 47 OF  THE  CODE
 OF  FEDERAL  REGULATIONS, WITH THE BROADBAND CONSUMER LABEL REQUIREMENTS
 ADOPTED BY THE FEDERAL COMMUNICATIONS COMMISSION IN FCC 22-86 ON  NOVEM-
 BER  FOURTEENTH,  TWO THOUSAND TWENTY-TWO, CODIFIED IN SECTION 8.1(A) OF
 TITLE 47 OF THE CODE OF FEDERAL REGULATIONS, SHALL BE DEEMED IN  COMPLI-
 ANCE WITH THIS SECTION.
   (B) FOR PURPOSES OF THIS PARAGRAPH, "FINANCIAL INSTITUTION" SHALL HAVE
 THE  SAME  MEANING AS DEFINED IN SECTION EIGHT HUNDRED ONE OF THE FINAN-
 CIAL SERVICES LAW. A FINANCIAL INSTITUTION THAT IS REQUIRED  TO  PROVIDE
 DISCLOSURES  IN  COMPLIANCE  WITH  ANY OF THE FOLLOWING FEDERAL OR STATE
 ACTS OR REGULATIONS WITH RESPECT TO A FINANCIAL  TRANSACTION  IS  EXEMPT
 FROM THIS SECTION FOR PURPOSES OF SUCH FINANCIAL TRANSACTION:
   (I) THE FEDERAL TRUTH IN SAVINGS ACT;
   (II) THE FEDERAL ELECTRONIC FUND TRANSFER ACT;
   (III) SECTION 19 OF THE FEDERAL RESERVE ACT;
   (IV) THE FEDERAL TRUTH IN LENDING ACT;
   (V) THE FEDERAL REAL ESTATE SETTLEMENT PROCEDURES ACT;
   (VI) THE FEDERAL HOME OWNERSHIP AND EQUITY PROTECTION ACT; OR
   (VII)  ANY  REGULATION  ADOPTED PURSUANT TO ANY OF THE FEDERAL ACTS IN
 SUBPARAGRAPHS (I) THROUGH (VI) OF THIS PARAGRAPH, INCLUSIVE.
   (C) COMPLIANCE WITH THE NOTICE REQUIREMENTS OF  SECTION  FIVE  HUNDRED
 EIGHTEEN  OF  THE  GENERAL  BUSINESS LAW BY A PERSON, FIRM, PARTNERSHIP,
 ASSOCIATION, OR CORPORATION IMPOSING A SURCHARGE  ON  ANY  SALES  TRANS-
 ACTION  WHERE  A CONSUMER ELECTS TO USE A CREDIT CARD IN LIEU OF PAYMENT
 BY CASH, CHECK, OR SIMILAR MEANS, SHALL BE DEEMED COMPLIANCE  WITH  THIS
 SECTION.
   (D) A FOOD SERVICE ESTABLISHMENT AS DEFINED IN PARAGRAPH (B) OF SUBDI-
 VISION  ONE  OF SECTION THREE HUNDRED NINETY-ONE-V OF THIS ARTICLE SHALL
 BE DEEMED COMPLIANT WITH THIS SECTION IF, IN EVERY OFFER  OR  ADVERTISE-
 MENT  FOR THE PURCHASE OR LEASE OF A GOOD OR SERVICE THAT INCLUDES PRIC-
 ING INFORMATION, THE TOTAL PRICE OF THE GOOD OR SERVICE BEING OFFERED OR
 ADVERTISED INCLUDES A CLEAR AND CONSPICUOUS DISCLOSURE OF THE PERCENTAGE
 OF ANY AUTOMATIC AND MANDATORY GRATUITY TO BE CHARGED.
   5. (A) ENTITIES SUBJECT TO SUBDIVISION FOUR OF SECTION  25.07  OF  THE
 ARTS  AND CULTURAL AFFAIRS LAW SHALL NOT BE SUBJECT TO THE PROVISIONS OF
 THIS SECTION.
   (B) THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO AIR  TRANSPORTA-
 TION  PROVIDED BY AIR CARRIERS, AS THOSE TERMS ARE USED IN SECTION 41713
 OF TITLE 49 OF THE UNITED STATES CODE.
   § 3. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law.

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Senate Bill S7783B

Sponsored By

Current Bill Status - In Assembly Committee

Feb 6, 2024 - Floor Vote

Floor Vote: Feb 6, 2024

Jan 9, 2024 - Consumer Protection Committee Vote

Consumer Protection Committee Vote: Jan 9, 2024

Bill Amendments

co-Sponsors

2023-S7783 - Details

2023-S7783 - Summary

2023-S7783 - Sponsor Memo

2023-S7783 - Bill Text download pdf

co-Sponsors

2023-S7783A - Details

2023-S7783A - Summary

2023-S7783A - Sponsor Memo

2023-S7783A - Bill Text download pdf

co-Sponsors

2023-S7783B (ACTIVE) - Details

2023-S7783B (ACTIVE) - Summary

2023-S7783B (ACTIVE) - Sponsor Memo

2023-S7783B (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7783B

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Sponsored By

Current Bill Status - In Assembly Committee

Bill Amendments

co-Sponsors

2023-S7783 - Details

2023-S7783 - Summary

2023-S7783 - Sponsor Memo

2023-S7783 - Bill Text download pdf

co-Sponsors

2023-S7783A - Details

2023-S7783A - Summary

2023-S7783A - Sponsor Memo

2023-S7783A - Bill Text download pdf

co-Sponsors

2023-S7783B (ACTIVE) - Details

2023-S7783B (ACTIVE) - Summary

2023-S7783B (ACTIVE) - Sponsor Memo

2023-S7783B (ACTIVE) - Bill Text download pdf

Comments