S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6663--A
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 7, 2025
                                ___________
 
 Introduced  by  M.  of  A.  LEE,  STECK, KELLES, GONZALEZ-ROJAS, COLTON,
   MAGNARELLI, GLICK, OTIS, DAVILA, McDONOUGH -- read once  and  referred
   to  the  Committee  on  Consumer  Affairs  and Protection -- 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. 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:
   (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;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00734-05-5
 A. 6663--A                          2
              

 
   (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  FEE AND IS INDETERMINABLE AT THE TIME OF THE
 OFFER OR ADVERTISEMENT, DISCLOSE SUCH VARIABLE FEE 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.
   (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
 A. 6663--A                          3
 
 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) A PERSON, FIRM, PARTNERSHIP, ASSOCIATION, OR  CORPORATION  THAT
 PROVIDES  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,  AND  IS  IN  COMPLIANCE  WITH THE BROADBAND CONSUMER LABEL
 REQUIREMENTS ADOPTED BY THE FEDERAL  COMMUNICATIONS  COMMISSION  IN  FCC
 22-86  ON  NOVEMBER  FOURTEENTH,  TWO  THOUSAND  TWENTY-TWO, CODIFIED IN
 SECTION 8.1(A) OF TITLE 47 OF THE CODE OF FEDERAL REGULATIONS, SHALL  BE
 DEEMED  IN COMPLIANCE WITH THIS SECTION. PROVIDED, HOWEVER, THAT IF SUCH
 FEDERAL BROADBAND CONSUMER LABEL REQUIREMENTS ARE NO LONGER  APPLICABLE,
 A  PERSON,  FIRM,  PARTNERSHIP,  ASSOCIATION,  OR  CORPORATION PROVIDING
 BROADBAND INTERNET ACCESS SERVICE SHALL COMPLY WITH  THE  PROVISIONS  OF
 THIS SECTION.
   (B) A PERSON, FIRM, PARTNERSHIP, ASSOCIATION, OR CORPORATION PROVIDING
 CABLE  SERVICE,  AS  DEFINED IN SECTION 522(6) OF TITLE 47 OF THE UNITED
 STATES CODE, WHETHER ON A STANDALONE BASIS OR AS PART OF A BUNDLE,  THAT
 COMPLIES  WITH THE TRUTH IN BILLING AND ADVERTISING REQUIREMENTS ADOPTED
 BY THE FEDERAL COMMUNICATIONS COMMISSION, AS CODIFIED IN SECTION  76.310
 OF  TITLE  47  OF  THE  CODE  OF FEDERAL REGULATIONS, SHALL BE DEEMED IN
 COMPLIANCE WITH THIS SECTION. PROVIDED, HOWEVER, THAT IF SUCH  TRUTH  IN
 BILLING  REQUIREMENTS ARE NO LONGER APPLICABLE, A PERSON, FIRM, PARTNER-
 SHIP, ASSOCIATION, OR CORPORATION PROVIDING CABLE SERVICE  SHALL  COMPLY
 WITH THE PROVISIONS OF THIS SECTION.
   (C) A FINANCIAL INSTITUTION THAT IS REQUIRED TO PROVIDE DISCLOSURES IN
 COMPLIANCE  WITH  ANY  OF  THE  FOLLOWING FEDERAL OR STATE ACTS OR REGU-
 LATIONS 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.
   FOR PURPOSES OF THIS PARAGRAPH, "FINANCIAL INSTITUTION" SHALL HAVE THE
 SAME MEANING AS DEFINED IN SECTION EIGHT HUNDRED ONE OF   THE  FINANCIAL
 SERVICES  LAW.
   (D)  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.
   (E) 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
 A. 6663--A                          4
 
 ADVERTISED INCLUDES A CLEAR AND CONSPICUOUS DISCLOSURE OF THE PERCENTAGE
 OF ANY AUTOMATIC AND MANDATORY GRATUITY TO BE CHARGED.
   (F)  A PERSON, FIRM, PARTNERSHIP, ASSOCIATION, OR CORPORATION OFFERING
 SERVICES FOR WHICH THE TOTAL PRICE OF THE SERVICE CANNOT  REASONABLY  BE
 KNOWN  AT  THE TIME OF THE OFFER DUE TO FACTORS THAT DETERMINE THE TOTAL
 PRICE THAT ARE BEYOND THE CONTROL OF SUCH PERSON OR ENTITY OFFERING  THE
 SERVICE, INCLUDING FACTORS THAT ARE DETERMINED BY CONSUMER SELECTIONS OR
 PREFERENCES  OR  THAT RELATE TO DISTANCE OR TIME, IS COMPLIANT WITH THIS
 SECTION IF SUCH PERSON  OR  ENTITY  OFFERING  THE  SERVICE  CLEARLY  AND
 CONSPICUOUSLY DISCLOSES:
   (I) THE FACTORS THAT DETERMINE THE TOTAL PRICE;
   (II) ANY MANDATORY FEES ASSOCIATED WITH THE TRANSACTION; AND
   (III) THAT THE TOTAL PRICE OF THE SERVICES MAY VARY.
   (G) IT IS NOT INTENDED TO BE A VIOLATION OF THIS SECTION TO ADVERTISE,
 DISPLAY,  OR  OFFER  THE CURRENT BID IN AN ONGOING AUCTION PROVIDED THAT
 THE BID CLEARLY AND CONSPICUOUSLY DISCLOSES:
   (I) ALL AMOUNTS THAT THE BUYER WOULD BE REQUIRED TO  PAY,  OTHER  THAN
 THOSE  AMOUNTS LISTED UNDER SUBPARAGRAPH (II) OF PARAGRAPH (A) OF SUBDI-
 VISION ONE OF THIS SECTION; AND
   (II) THAT THE TOTAL PRICE OF THE GOODS OR SERVICES MAY VARY.
   (H) IT IS NOT INTENDED TO BE A VIOLATION OF THIS SECTION TO ADVERTISE,
 DISPLAY, OR OFFER MULTIPLE TOTAL PRICES IN ONE ADVERTISEMENT AS LONG  AS
 EACH  TOTAL  PRICE  CORRESPONDS TO ONE GOOD OR SERVICE IN THE ADVERTISE-
 MENT.
   (I) OFFERS OR ADVERTISEMENTS FOR SHORT-TERM LODGING, INCLUDING  TEMPO-
 RARY  SLEEPING ACCOMMODATIONS AT A HOTEL, MOTEL, INN, SHORT-TERM RENTAL,
 VACATION RENTAL, OR OTHER PLACE OF LODGING THAT ARE IN  COMPLIANCE  WITH
 PART  464  OF  CHAPTER  I OF TITLE 16 OF THE CODE OF FEDERAL REGULATIONS
 SHALL BE DEEMED IN COMPLIANCE WITH THIS SECTION. PROVIDED, HOWEVER, THAT
 IF SUCH REGULATIONS ARE NO LONGER APPLICABLE, A PERSON,  FIRM,  PARTNER-
 SHIP,  ASSOCIATION,  OR  CORPORATION  OFFERING  SHORT-TERM LODGING SHALL
 COMPLY WITH THE PROVISIONS OF THIS SECTION.
   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. Severability. If any clause, sentence, paragraph, section or part
 of this act shall be adjudged by any court of competent jurisdiction  to
 be invalid and after exhaustion of  all  further  judicial  review,  the
 judgment  shall  not affect, impair or invalidate the remainder thereof,
 but shall be confined in its operation to the  clause,  sentence,  para-
 graph,  section or part of this act directly involved in the controversy
 in which the judgment shall have been rendered.
   §  4. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.