1. The Laws of New York
  2. Consolidated Laws
  3. General Business
  4. Article 12-B: Mercantile Establishments


Section 218-AA Warranty disclosure

General Business (GBS)

1. As used in this section, the term "grey markets merchandise" means any brand-name consumer product normally accompanied by a warranty valid in the United States of America which is imported into the United States through channels other than the manufacturer's authorized United States distributor, for sale to the public in this state, and which, by reason of this manner of distribution, may not be accompanied by a manufacturer's express written warranty valid in the United States. Grey markets merchandise shall be limited to products purchased by a consumer for use primarily for personal, family or household purposes.

  2. Every retail dealer who knowingly offers for sale grey markets merchandise shall conspicuously post, in the following manner, the information required by subdivision three of this section:

  a. On a sign attached to the item itself; or

  b. On a sign affixed to each cash register or point of sale at which such goods are offered for sale; or

  c. On a sign so situated as to be clearly visible to the buyer from the register.

  3. Every retail dealer who offers for sale grey markets merchandise shall disclose, as applicable, that either some of the products or a specific product are not:

  a. accompanied by the manufacturer's warranty valid in the United States; or

  b. accompanied by instructions in English; or

  c. eligible for a rebate offered by the manufacturer.

  4. Every retail dealer or dealer engaged in a mail-order business who offers for sale grey markets merchandise shall include the disclosure required by subdivision three of this section in any written advertisement relating to such product. Such disclosure shall be made in type of a conspicuous size.

  5. Any retail dealer who violates any provision of this section shall be liable, for a period of up to twenty days from the date of purchase, to the buyer for a refund or credit on credit-card purchases provided the product purchased has not been used or damaged by the buyer.

  6. Whenever there shall be a violation of this section an application may be made by the attorney general in the name of the people of the state of New York to a court or justice having jurisdiction by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violations; and if it shall appear to the satisfaction of the court or justice that the defendant has, in fact, violated this section, an injunction may be issued by such court or justice, enjoining and restraining any further violation, without requiring proof that any person has, in fact, been injured or damaged thereby. In any such proceeding, the court may make allowances to the attorney general as provided in paragraph six of subdivision (a) of section eighty-three hundred three of the civil practice law and rules, and direct restitution. Whenever the court shall determine that a violation of this section has occurred, the court may impose a civil penalty of not more than five hundred dollars for each violation. In connection with any such proposed application, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules.

  7. Provided, however, that it shall be an affirmative defense that the consumer is provided with a written warranty which offers equal or greater protection than the manufacturer's warranty through a warrantor demonstrated to be a financially responsible retailer, distributor, importer or other third person capable of fulfilling warranty obligations.