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350-L. AGENCY LIABILITY.
350-M. DEFENSES.
350-N. COVERED SUPPLIER IMMUNITY.
350-O. ENFORCEMENT.
350-P. RULES OF CONSTRUCTION.
§ 350-J. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
1. "ANTITRUST LAWS" SHALL HAVE THE SAME MEANING AS IN 15 USC 12(A) AND
SHALL ALSO INCLUDE:
(A) SECTION FIVE OF THE FEDERAL TRADE COMMISSION ACT TO THE EXTENT
SUCH SECTION APPLIES TO UNFAIR METHODS OF COMPETITION; AND
(B) ANY ANTITRUST LAWS OF THE STATE OF NEW YORK.
2. "CHANNELS OF TRADE" MEANS THE DISTINCT AND DIVERSE PATHWAYS THROUGH
WHICH COVERED GOODS ARE MARKETED, DISTRIBUTED, AND SOLD TO CONSUMERS IN
THE UNITED STATES, INCLUDING TRADITIONAL SUPERMARKETS, HYPERMARKETS,
DISCOUNT STORES, CONVENIENCE STORES, ONLINE OR E-COMMERCE RETAILERS,
SPECIALTY FOOD STORES, MASS MERCHANDISERS, WHOLESALE CLUBS, AND ANY
OTHER RETAIL ESTABLISHMENTS, PLATFORMS, OR ENTITIES THAT ENGAGE IN THE
SALE OF COVERED GOODS, EITHER PRIMARILY OR AS A SEGMENT OF THEIR BROADER
RETAIL OFFERING, AND COMPETE FOR CONSUMER GROCERY DOLLARS.
3. "COVERED GOOD" MEANS A GROCERY ITEM, INCLUDING AN ITEM DESCRIBED IN
PARAGRAPH (1) OR (2) OF THE DEFINITION OF ELIGIBLE FOODS UNDER 7 CFR
271, OR A CONSUMER PACKAGED GOOD. THE TERM "COVERED GOOD" DOES NOT
INCLUDE GASOLINE, PRESCRIPTION DRUGS, TOBACCO, OR ALCOHOLIC BEVERAGES.
4. "COVERED RETAILER" MEANS A PERSON THAT SELLS COVERED GOODS TO END
PURCHASERS AT ONE OR MORE PHYSICAL LOCATIONS IN THE STATE OF NEW YORK.
5. "COVERED SUPPLIER" MEANS A PERSON THAT:
(A) PRODUCES AND SELLS COVERED GOODS IN THE STATE OF NEW YORK; AND
(B) SELLS, DIRECTLY OR THROUGH SUCH PERSON'S AGENT OR ANY THIRD PARTY
WITH WHICH SUCH COVERED SUPPLIER CONTRACTS, COVERED GOODS PRODUCED OR
MANUFACTURED BY SUCH PERSON, DIRECTLY OR THROUGH SUCH PERSON'S AGENT OR
ANY THIRD PARTY WITH WHICH SUCH COVERED SUPPLIER CONTRACTS, TO COVERED
RETAILERS OR COVERED WHOLESALERS IN AN AGGREGATE AMOUNT EXCEEDING SIX
BILLION DOLLARS PER YEAR, AS ADJUSTED EACH YEAR BY AN AMOUNT EQUAL TO
THE PERCENTAGE INCREASE, IF ANY, IN THE CONSUMER PRICE INDEX FOR ALL
URBAN CONSUMERS PUBLISHED BY THE U.S. DEPARTMENT OF LABOR.
6. "COVERED WHOLESALER" MEANS A PERSON THAT PURCHASES COVERED GOODS
FOR THE PURPOSE OF RESELLING OR DISTRIBUTING THEM TO COVERED RETAILERS
IN THE STATE OF NEW YORK.
7. "DOMINANT COVERED RETAILER" MEANS A COVERED RETAILER WITH:
(A) ANNUAL RETAIL SALES OF COVERED GOODS IN AN AGGREGATE AMOUNT
EXCEEDING EIGHTEEN BILLION DOLLARS, AS ADJUSTED EACH YEAR BY AN AMOUNT
EQUAL TO THE PERCENTAGE INCREASE, IF ANY, IN THE CONSUMER PRICE INDEX
FOR ALL URBAN CONSUMERS PUBLISHED BY THE U.S. DEPARTMENT OF LABOR; AND
(B) NOT LESS THAN ONE STOREFRONT OR DISTRIBUTION CENTER LOCATED IN
MORE THAN TWENTY STATES INCLUDING THE STATE OF NEW YORK.
8. "PERSON" SHALL INCLUDE:
(A) EACH ENTITY THAT A PERSON OWNS OR CONTROLS, IN WHOLE OR IN PART;
AND
(B) EACH ENTITY THAT CONTROLS SUCH PERSON, IN WHOLE OR IN PART.
9. "PRICING DIFFERENTIAL" MEANS, WITH RESPECT TO THE VOLUME UNIT BASIS
OF A COVERED GOOD PURCHASED BY A COVERED RETAILER OR COVERED WHOLESALER
COMPARED TO THE VOLUME UNIT BASIS OF A PRODUCT PURCHASED BY A DOMINANT
COVERED RETAILER:
(A) THE DIFFERENCE IN PRICE OF THE PRODUCT MULTIPLIED BY THE QUANTITY
SOLD; OR
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(B) THE DIFFERENCE IN THE PRICE EQUIVALENT OF THE TERMS OF SALE OF THE
PRODUCT, ADJUSTED BY THE TIME VALUE OF MONEY TO ACCOUNT FOR ANY DIFFER-
ENCE IN PAYMENT TERMS, MULTIPLIED BY THE QUANTITY SOLD.
10. "SAME COVERED GOODS" MEANS, WITH RESPECT TO TWO DIFFERENT COVERED
GOODS, A COVERED GOOD AND ANY OTHER COVERED GOOD SOLD UNDER THE SAME
BRAND THAT DIFFERS ONLY IN QUANTITY OR PACKAGING.
11. "SAME TERMS OF SALE" MEANS, WITH RESPECT TO TWO DIFFERENT AGREE-
MENTS, TERMS OF SALE THAT ARE IDENTICAL ON A PER UNIT BASIS, EXCLUDING
SHIPPING AND DELIVERY COSTS, WHICH MAY VARY ON ACCOUNT OF DISTANCE,
SPEED, OR METHOD OF SHIPPING AND DELIVERY, OR AVAILABILITY OF SELF-DIS-
TRIBUTION.
12. "TERMS OF SALE" MEANS ALL SUBSTANTIVE TERMS AND CONDITIONS OF SALE
COMMONLY SUBJECT TO NEGOTIATION AND COMPETITION, INCLUDING PRICE,
DISCOUNTS, REBATES, DELIVERY TERMS, PAYMENT TERMS, PACKAGE SIZE, PROMO-
TIONAL ALLOWANCES, MARKETING DEVICES, MERCHANDISING ARRANGEMENTS, TERMS
OF DISTRIBUTION, AND ANY OTHER SIMILAR TERMS, CONSIDERED ON A PER UNIT
BASIS AS APPROPRIATE.
13. "VOLUME UNIT BASIS" MEANS THE BASE UNIT OF MEASUREMENT, NOT
EXCEEDING A TRUCKLOAD, BY WHICH PURCHASE QUANTITIES ARE MEASURED IN
PURCHASE AGREEMENTS BETWEEN A COVERED SUPPLIER AND A COVERED RETAILER OR
COVERED WHOLESALER.
14. "ACTUAL DAMAGES" MEANS THE PRICING DIFFERENTIAL SUFFERED BY A
COVERED RETAILER OR COVERED WHOLESALER AS A RESULT OF A VIOLATION OF
THIS ARTICLE.
§ 350-K. ENSURING PRICE FAIRNESS. IT SHALL BE UNLAWFUL FOR:
1. A COVERED SUPPLIER, DIRECTLY OR THROUGH ITS AGENT, TO FAIL TO
EXTEND THE SAME TERMS OF SALE OF A COVERED GOOD TO ALL COVERED RETAILERS
AND COVERED WHOLESALERS THAT PURCHASE THE COVERED GOOD ON THE SAME
VOLUME UNIT BASIS IN REASONABLY CONTEMPORANEOUS SALES;
2. A COVERED SUPPLIER TO FAIL TO PROVIDE, WITHIN FOURTEEN DAYS OF A
WRITTEN REQUEST FROM A COVERED RETAILER OR COVERED WHOLESALER THAT HAS
PURCHASED A COVERED GOOD OR RECEIVED AN OFFER INCLUDING TERMS OF SALE
FOR A COVERED GOOD FROM THE COVERED SUPPLIER, DIRECTLY OR THROUGH ITS
AGENT, THE ANONYMIZED TERMS OF SALE FROM ALL CONTRACTS WITH DOMINANT
COVERED RETAILERS THAT PURCHASED THE SAME COVERED GOOD ON THE SAME
VOLUME UNIT BASIS DURING THE ONE HUNDRED EIGHTY DAY PERIOD PRIOR TO
WHICH THE PURCHASE OR OFFER INCLUDING TERMS OF SALE WAS MADE;
3. A COVERED SUPPLIER, DIRECTLY OR THROUGH ITS AGENT, TO REFUSE THE
SALE OF A COVERED GOOD TO A COVERED RETAILER OR COVERED WHOLESALER ON
THE BASIS OF A DISTINCTION IN CHANNELS OF TRADE, OR OTHER SIMILAR BASIS,
IF THE EFFECT IS TO FACILITATE A DIFFERENCE IN TERMS OF SALE IN
VIOLATION OF SUBDIVISION ONE OF THIS SECTION;
4. A COVERED SUPPLIER, DIRECTLY OR THROUGH ITS AGENT, TO REFUSE THE
SALE OF A COVERED GOOD TO A COVERED RETAILER OR A COVERED WHOLESALER IF:
(A) THE COVERED RETAILER IS NOT A DOMINANT COVERED RETAILER;
(B) THE COVERED RETAILER OR THE COVERED WHOLESALER HAS MADE AND
COMPLETED PAYMENT FOR PURCHASES FROM THE COVERED SUPPLIER WITHIN THE
PREVIOUS TWELVE MONTHS;
(C) THE COVERED RETAILER OR THE COVERED WHOLESALER HAS MADE A REQUEST
OF THE COVERED SUPPLIER TO PROVIDE TO SUCH RETAILER OR WHOLESALER THE
SAME TERMS OF SALE PROVIDED TO OTHER COVERED RETAILERS OR COVERED WHOLE-
SALERS, CONSISTENT WITH THE TERMS OF THIS SECTION; AND
(D) A REFUSAL BY THE COVERED SUPPLIER TO SELL A COVERED GOOD TO THE
COVERED RETAILER OR COVERED WHOLESALER HAS NO COMMERCIALLY REASONABLE
JUSTIFICATION;
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5. A DOMINANT COVERED RETAILER, OR ITS PURCHASING AGENT OR ANY THIRD
PARTY THROUGH WHICH A DOMINANT COVERED RETAILER CONTRACTS TO PURCHASE
COVERED GOODS, TO IMPOSE ON OR REQUIRE OF A COVERED SUPPLIER TERMS OF
SALE WITH RESPECT TO A COVERED GOOD IF THE DOMINANT COVERED RETAILER
KNOWS, OR REASONABLY SHOULD KNOW, THAT:
(A) THE DOMINANT COVERED RETAILER, OR ITS PURCHASING AGENT, THEREBY
WILL ACQUIRE MORE OF THE COVERED GOOD THAN THE DOMINANT COVERED RETAILER
CAN SELL BETWEEN THE REGULAR PURCHASE INTERVALS OF THE DOMINANT COVERED
RETAILER; AND
(B) PURCHASES BY THE DOMINANT COVERED RETAILER, OR ITS PURCHASING
AGENT, UNDER THE TERMS OF SALE ARE LIKELY TO RESULT IN UNREASONABLY
DIMINISHED AVAILABILITY OF THE COVERED GOOD TO ANOTHER COVERED RETAILER;
OR
6. A DOMINANT COVERED RETAILER, OR ITS PURCHASING AGENT OR ANY THIRD
PARTY THROUGH WHICH A DOMINANT COVERED RETAILER CONTRACTS TO PURCHASE
COVERED GOODS, DIRECTLY OR INDIRECTLY, TO TAKE ANY ACTION THAT SUCH
DOMINANT COVERED RETAILER, PURCHASING AGENT, OR THIRD PARTY INTENDS,
KNOWS, OR SHOULD KNOW WILL COERCE OR INDUCE A COVERED SUPPLIER TO
VIOLATE THIS SECTION.
§ 350-L. AGENCY LIABILITY. A COVERED SUPPLIER OR DOMINANT COVERED
RETAILER, AS APPLICABLE, SHALL BE LIABLE FOR ANY VIOLATION OF SECTION
THREE HUNDRED FIFTY-K OF THIS ARTICLE BY A CONTRACTED THIRD PARTY.
§ 350-M. DEFENSES. A PERSON ALLEGED TO HAVE ENGAGED IN UNLAWFUL
CONDUCT DESCRIBED IN SECTION THREE HUNDRED FIFTY-K OF THIS ARTICLE SHALL
NOT BE LIABLE FOR SUCH CONDUCT ON SHOWING, BY A PREPONDERANCE OF THE
EVIDENCE, THAT:
1. ANY DIFFERENCE IN THE TERMS OF SALE WAS PREDOMINANTLY ATTRIBUTABLE
TO A COVERED RETAILER ENGAGING IN SELF-DISTRIBUTION OF THE COVERED GOOD
AT ISSUE OR OTHERWISE LOWERING THE OVERALL COSTS OF THE COVERED SUPPLIER
THROUGH GENUINE EFFICIENCIES, SUCH AS ECONOMIES IN DISTRIBUTION OR MANU-
FACTURING;
2. A COVERED RETAILER VOLUNTARILY ACCEPTED TERMS OF SALE RELATING TO A
COVERED GOOD THAT WERE NOT THE SAME TERMS OF SALE AS THE TERMS OF SALE
OF ANOTHER COVERED RETAILER IN EXCHANGE FOR COMMERCIALLY REASONABLE
CONSIDERATION, PROVIDED THE ACCEPTANCE OF SUCH TERMS WAS NEITHER PRETEX-
TUAL, COERCED, NOR MADE UNDER DURESS; OR
3. THE TERMS OF SALE APPLIED ONLY TO CASES IN WHICH THERE WAS AN ACTU-
AL OR IMMINENT DETERIORATION OF PERISHABLE GOODS, OBSOLESCENCE OF
SEASONAL GOODS, DISTRESS SALES UNDER COURT PROCESS, OR SALES IN GOOD
FAITH IN DISCONTINUANCE OF BUSINESS IN THE GOODS CONCERNED.
§ 350-N. COVERED SUPPLIER IMMUNITY. PROVIDED THAT A COVERED SUPPLIER
DID NOT COLLUDE WITH THE RELEVANT DOMINANT COVERED RETAILER IN ANY
SCHEME VIOLATIVE OF THE ANTITRUST LAWS, A COVERED SUPPLIER SHALL BE
IMMUNE FROM LIABILITY FOR A VIOLATION OF SECTION THREE HUNDRED FIFTY-K
OF THIS ARTICLE WHERE THE DEFENDANT COVERED SUPPLIER SHOWS BY A PREPON-
DERANCE OF THE EVIDENCE THAT:
1. THE VIOLATION WAS IMPOSED ON OR REQUIRED OF THE DEFENDANT COVERED
SUPPLIER BY A DOMINANT COVERED RETAILER;
2. THE DEFENDANT COVERED SUPPLIER WOULD HAVE SUFFERED SUBSTANTIAL HARM
TO ITS BUSINESS WERE IT TO REFUSE THE DEMAND OF THE DOMINANT COVERED
RETAILER; AND
3. THE DEFENDANT COVERED SUPPLIER MADE A GOOD FAITH EFFORT TO DISCLOSE
THE DOMINANT COVERED RETAILER'S CONDUCT TO THE ATTORNEY GENERAL.
§ 350-O. ENFORCEMENT. THE ATTORNEY GENERAL OR A PERSON INJURED BY A
VIOLATION OF THIS ARTICLE MAY FILE SUIT TO:
1. OBTAIN AN INJUNCTION TO CURE A VIOLATION OF THIS ARTICLE; AND/OR
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2. OBTAIN A CIVIL PENALTY IN AN AMOUNT NOT GREATER THAN THREE TIMES
THE ACTUAL DAMAGES.
§ 350-P. RULES OF CONSTRUCTION. 1. NOTWITHSTANDING ANY PROVISION OF
THIS ARTICLE, THIS ARTICLE SHALL NOT BE CONSTRUED TO LIMIT, IMPAIR, OR
SUPERSEDE ANY OF THE ANTITRUST LAWS.
2. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO REQUIRE ANY PERSON TO
DO BUSINESS WITH ANY OTHER PERSON, UNLESS THE REFUSAL TO DO SO WOULD
VIOLATE A PROVISION OF THIS ARTICLE.
§ 4. This act shall take effect immediately.