Requires all rebates to be provided by the retailer to a purchaser at the time of the purchase of the good or service to which the rebate applies; authorizes the retailer to determine and disclose in advertisements the method in which the rebate shall be provided; provides for a civil penalty of one hundred dollars for each violation.
TITLE OF BILL: An act to amend the general business law, in relation to requirements for rebates provided by retailers
PURPOSE: This legislation would require a rebate when offered solely by a retail establishment to be paid at the time of purchase in a manner of the choosing of the retailer.
SUMMARY OF SPECIFIC PROVISIONS: Adds a new section, 391-s, to the General Business Law. It defines "rebate" "manufacture's rebate", requires a rebate offered directly by a retailer to be provided at the time of purchase in a manner of the choosing of the retailer, and provides for a civil penalty of $100 for each violation.
JUSTIFICATION: Many companies apply rebates as a way of enticing customers to purchase items. While no consumer can argue with being offered a discount on a product, companies know that a consumer is significantly less likely to apply for a rebate. Further the rebate process is often cumbersome and consumers often give up, or erroneously fill out the proper forms and are summarily rejected for the rebate. If a company's true intention is to incentive a purchase by offering a discount, then such discount should be applied immediately.
This legislation which applies solely when a rebate is offered by a retailer would require that the rebate is paid at that moment in a manner chosen by the retailer for example with a direct price reduction, or a gift certificate or gift card.
PRIOR LEGISLATIVE HISTORY: S. 6003 of 2004; Referred to Consumer Protection S. 2267 of 2005/06; Referred to Consumer Protection S. 2716 of 2007/08; Referred to Consumer Protection S. 2358 of 2009/10; Referred to Consumer Protection FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: The first of September next succeeding the date on which it shall have become law.
STATE OF NEW YORK ________________________________________________________________________ 2687--D 2011-2012 Regular Sessions IN SENATE January 28, 2011 ___________Introduced by Sen. GRISANTI -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- 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 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the general business law, in relation to requirements for rebates provided by retailers THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The general business law is amended by adding a new section 391-s to read as follows: S 391-S. REBATES. 1. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "REBATE" SHALL MEAN THE RETURN TO A PURCHASER OF ANY GOOD OR SERVICE OF ANY PORTION OF THE PURCHASE PRICE THEREOF OR A SPECIFIC MONE- TARY AMOUNT; (B) "MANUFACTURER'S REBATE" SHALL MEAN A REBATE ADVERTISED OR OFFERED BY OR ON BEHALF OF A MANUFACTURER RETURNING TO A PURCHASER OF ANY GOOD OR SERVICE ANY PORTION OF THE PURCHASE PRICE THEREOF OR A SPECIFIC MONE- TARY AMOUNT. 2. ANY RETAIL ESTABLISHMENT OFFERING A REBATE AND RESPONSIBLE FOR THE FINANCING OF SUCH REBATE SHALL REMIT SUCH REBATE TO THE PURCHASER AT THE TIME OF RETAIL PURCHASE OF THE GOOD OR SERVICE TO WHICH THE REBATE APPLIES.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05604-08-2 S. 2687--D 2
3. THE RETAIL ESTABLISHMENT SHALL DETERMINE AND DISCLOSE IN ANY ADVER- TISEMENT OF THE REBATE THE METHOD BY WHICH THE REBATE SHALL BE REMITTED TO THE PURCHASER. 4. THE PROVISIONS OF SUBDIVISIONS TWO AND THREE OF THIS SECTION SHALL NOT APPLY WHEN A REBATE IS A MANUFACTURER'S REBATE AND IS ADVERTISED OR OTHERWISE DISCLOSED CONSPICUOUSLY AS SUCH. 5. ANY PERSON, FIRM, CORPORATION OR ASSOCIATION OFFERING A REBATE WHO VIOLATES THIS SECTION SHALL BE SUBJECT TO A CIVIL PENALTY OF ONE HUNDRED DOLLARS FOR EACH SUCH VIOLATION. S 2. This act shall take effect on the first of September next succeeding the date on which it shall have become a law.