BILL NUMBER: S8700

SPONSOR: CLEARE
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring that
digital coupons are made available to consumers in paper form of identi-
cal value

 
PURPOSE:

This legislation will require that digital coupons are made available to
consumers in paper form of identical value.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section.l amends the General Business Law by adding a new section 396-oo
which:

*Defines "digital coupon" as a store coupon, rebate or similar instru-
ment that is offered to a consumer through the internet.

              

*States that a person selling or offering for sale goods or services at
retail that offers a digital coupon shall make available to a consumer a
paper coupon of identical value.

*States that any person that violates the provisions of the above subdi-
vision shall be subject to a civil penalty of up to $2500 dollars for a
first offense and up.to $5000 for any subsequent offense, which may be
collected and enforced by the divisions of consumer protection estab-
lished pursuant to Section 94a of the Executive Law.

*States that the secretary of state, on behalf of the. division of
consumer protection, shall adopt rules and regulations necessary to
effectuate the purposes of this section.

Section 2 sets the effective date.

 
JUSTIFICATION:

Many New Yorkers, particularly those without internet access or smart-
phones, are unable to take advantage of weekly store circulars that
feature "digital-only" sales items. This puts vulnerable consumers,
including the elderly and low-income populations, at a disadvantage, as
they are forced to pay higher prices than those with internet access and
smartphones. Especially during a time of record high inflation, this
creates an undue financial burden on these individuals.

The number of customers in New York State is well within the millions.
According to a January 13, 2022 national poll by the Pew Research
Center, 39% of those older than 65 do not own a smartphone and 25% do
not use the internet. According to another national poll by the Pew
Research Center dated June 22, 2021 among households with incomes under
$30,000, 43% do not have broadband access. A September 14, 2021 state-
ment from the State Comptroller's Office states that over one million
New. Yorker households are not connected to broadband, with many predom-
inantly rural areas remaining underserved by broadband infrastructure.
The same statement highlights that approximately 1 in 3 New York house-
holds with income less than $20,000 lacked access to broadband at home.
As of 2019, the greatest share of households lacking access was in New
York City. These populations are shut out of digital deals which often
hold a better value than a physical coupon.

Furthermore, the promotion of digital-only deals can be misleading to
those who are not familiar with these offers. Many customers misunder-
stand the nature of digital deals and assume that simply scanning their
loyalty card or entering their phone number at checkout will entitle
them to the advertised price.

According to a September 2022 survey by Consumer World nearly one-third
of shoppers could not correctly explain how to obtain an advertised
digital discount and 25% of customers who understand these offers admit
they may lack the technical ability to use the store's app or website.

This bill would require that stores offer physical coupons of identical
value to their digital counterparts. This would ensure that all custom-
ers have access to the same savings opportunities, regardless of their
technological abilities or access to the internet. By requiring physical
coupons to be available, we can ensure that everyone, regardless of
their digital literacy or resources, can take advantage of the same
savings opportunities.

 
PRIOR LEGISLATIVE HISTORY:

New Legislation

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect six months after it shall have become a law.
Effective immediately, the addition, amendment, and/or repeal of any
rule or regulation necessary for the implementation of this act on its
effective date are authorized to be made and completed on or before such
effective date.