S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   593

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
  tee on Consumer Affairs and Protection

AN  ACT  to  amend the general business law, in relation to enacting the
  discount buying club consumer protection act

  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 article
30-B to read as follows:
                              ARTICLE 30-B
              DISCOUNT BUYING CLUB CONSUMER PROTECTION ACT
SECTION 641.   SHORT TITLE.
        641-A. DEFINITIONS.
        641-B. BUYER'S OR OTHER OBLIGOR'S RIGHT TO CANCEL.
        641-C. FORM OF NOTICE; STATEMENT OF BUYER'S RIGHTS.
        641-D. ENFORCEMENT; PENALTIES.
  S  641.  SHORT  TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "DISCOUNT BUYING CLUB CONSUMER PROTECTION ACT".
  S 641-A. DEFINITIONS. AS USED IN THIS  ARTICLE,  THE  FOLLOWING  TERMS
SHALL MEAN:
  1.  "BUSINESS  DAY"  MEANS ANY CALENDAR DAY EXCEPT SUNDAY OR ANY LEGAL
HOLIDAY.
  2. "BUYER" AS USED IN THIS ARTICLE MEANS  ANY  INDIVIDUAL  WHO  ENTERS
INTO AN AGREEMENT FOR SERVICES WITH A DISCOUNT BUYING CLUB.
  3.  "DISCOUNT  BUYING  CLUB"  MEANS  ANY  PERSON, FIRM OR CORPORATION,
WHICH, IN EXCHANGE FOR VALUABLE CONSIDERATION,  OFFERS  TO  SELL  OR  TO
ARRANGE THE SALE OF GOODS OR SERVICES TO ITS CUSTOMERS AT PRICES REPRES-
ENTED  TO  BE  LOWER  THAN  ARE GENERALLY AVAILABLE. SUCH TERM SHALL NOT
INCLUDE:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02887-01-3

              

A. 593                              2

  A. ANY COOPERATIVE BUYING ASSOCIATION  OR  OTHER  GROUP  IN  WHICH  NO
PERSON IS INTENDED TO PROFIT OR ACTUALLY PROFITS BEYOND THE BENEFIT THAT
ALL MEMBERS RECEIVE FROM BUYING AT A DISCOUNT;
  B. ANY PERSON, FIRM OR CORPORATION THAT:
  (I)  FOR  FIFTY DOLLARS OR LESS SELLS TICKETS OR COUPONS VALID FOR USE
IN OBTAINING GOODS OR SERVICES FROM A RETAIL MERCHANT; OR
  (II) AS A SERVICE COLLATERAL TO ITS PRINCIPAL  BUSINESS,  AND  FOR  NO
ADDITIONAL  CHARGE, ARRANGES FOR ITS MEMBERS OR CUSTOMERS TO PURCHASE OR
LEASE DIRECTLY FROM PARTICULAR MERCHANTS AT A SPECIFIED DISCOUNT; OR
  (III) CHARGES AN ADVANCE FEE FOR ACCESS TO SERVICE,  OR  MEMBER  BENE-
FITS,  AND  ALLOWS  THE  BUYER  TO TERMINATE MEMBERSHIP BY NOTIFYING THE
PERSON, FIRM OR CORPORATION OF INTENT TO  TERMINATE  MEMBERSHIP  WITHOUT
FURTHER OBLIGATION TO MAKE ADDITIONAL PAYMENTS.
  4. "SELLER" SHALL MEAN ANY PERSON, PARTNERSHIP, CORPORATION OR ASSOCI-
ATION ENGAGED IN THE SALE OF DISCOUNT BUYING CLUB SERVICES.
  S 641-B. BUYER'S OR OTHER OBLIGOR'S RIGHT TO CANCEL. 1. IN ADDITION TO
ANY  RIGHT OTHERWISE TO REVOKE AN OFFER, THE BUYER MAY CANCEL A DISCOUNT
BUYING CLUB AGREEMENT UNTIL MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE
DAY ON WHICH THE BUYER HAS SIGNED THE AGREEMENT.  SUCH  AGREEMENT  SHALL
IMPOSE NO LIABILITY ON THE BUYER FOR SUCH CANCELLATION. THE SELLER SHALL
PROVIDE  A  REFUND  OF  ANY FEE PAID BY THE BUYER NOT MORE THAN TEN DAYS
AFTER SUCH CANCELLATION.
  2. CANCELLATION OCCURS WHEN WRITTEN NOTICE OF CANCELLATION IS GIVEN TO
THE SELLER.
  3. NOTICE OF CANCELLATION, IF GIVEN BY MAIL,  SHALL  BE  DEEMED  GIVEN
WHEN DEPOSITED IN A MAILBOX PROPERLY ADDRESSED AND POSTAGE PREPAID.
  S 641-C. FORM OF NOTICE; STATEMENT OF BUYER'S RIGHTS. 1. IN A DISCOUNT
BUYING CLUB SERVICE SALE, THE SELLER SHALL FURNISH TO THE BUYER:
  (A)  A  FULLY COMPLETED RECEIPT OR COPY OF ANY AGREEMENT PERTAINING TO
SUCH SALE AT THE TIME OF ITS EXECUTION, WHICH IS IN THE  SAME  LANGUAGE,
E.G.    SPANISH, AS THAT PRINCIPALLY USED IN THE ORAL SALES PRESENTATION
AND WHICH SHOWS THE DATE OF THE TRANSACTION AND CONTAINS  THE  NAME  AND
ADDRESS  OF THE SELLER, AND IN IMMEDIATE PROXIMITY TO THE SPACE RESERVED
IN THE AGREEMENT FOR THE SIGNATURE OF THE BUYER AND  IN  NOT  LESS  THAN
TWELVE-POINT  BOLD FACE TYPE, A STATEMENT IN SUBSTANTIALLY THE FOLLOWING
FORM:
  "YOU, THE BUYER, MAY CANCEL THIS TRANSACTION  AT  ANY  TIME  PRIOR  TO
MIDNIGHT  OF  THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION.
SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF  THIS
RIGHT."; AND
  (B)  AT THE TIME THE BUYER SIGNS THE DISCOUNT BUYING CLUB AGREEMENT, A
COMPLETED FORM IN DUPLICATE, CAPTIONED "NOTICE OF  CANCELLATION",  WHICH
SHALL  BE  ATTACHED  TO  THE  AGREEMENT AND EASILY DETACHABLE, AND WHICH
SHALL CONTAIN IN NOT LESS THAN TWELVE-POINT BOLD FACE TYPE THE FOLLOWING
INFORMATION AND STATEMENTS IN THE SAME LANGUAGE, E.G. SPANISH,  AS  THAT
USED IN THE AGREEMENT:
                         NOTICE OF CANCELLATION
  (ENTER DATE OF TRANSACTION) _________________________________________
  (DATE)
  YOU  MAY  CANCEL  THIS TRANSACTION, WITHOUT ANY PENALTY OR OBLIGATION,
WITHIN THREE BUSINESS DAYS FROM THE ABOVE DATE.
  IF YOU CANCEL, ANY PAYMENTS MADE BY YOU UNDER THE  AGREEMENT  AND  ANY
NEGOTIABLE  INSTRUMENT EXECUTED BY YOU WILL BE RETURNED WITHIN TEN BUSI-
NESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR  CANCELLATION  NOTICE,
AND  ANY  SECURITY  INTEREST  ARISING  OUT  OF  THE  TRANSACTION WILL BE

A. 593                              3

CANCELLED. TO CANCEL THIS TRANSACTION, MAIL  OR  DELIVER  A  SIGNED  AND
DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE TO
  (NAME  OF  SELLER),                             AT (ADDRESS OF SELLER)
__________________
  _________________________________
  (PLACE OF BUSINESS)                      NOT LATER THAN MIDNIGHT OF
  ____________________________________ (DATE)
  I HEREBY CANCEL THIS TRANSACTION.
  _________________ (DATE)
  ______________________________ (BUYER'S SIGNATURE)
THE SELLER SHALL COMPLETE BOTH COPIES BY ENTERING THE NAME OF THE  SELL-
ER, THE ADDRESS OF THE SELLER'S PLACE OF BUSINESS, THE DATE OF THE TRAN-
SACTION, AND THE DATE, NOT EARLIER THAN THE THIRD BUSINESS DAY FOLLOWING
THE  DATE  OF  THE  TRANSACTION,  BY  WHICH THE BUYER MAY GIVE NOTICE OF
CANCELLATION.
  2. THE SELLER SHALL INFORM EACH BUYER ORALLY AT THE  TIME  HE  OR  SHE
SIGNS THE AGREEMENT OF HIS OR HER RIGHT TO CANCEL.
  3.  A  DISCOUNT BUYING CLUB AGREEMENT OR RECEIPT SHALL NOT INCLUDE ANY
CONFESSION OF JUDGMENT OR ANY WAIVER OF ANY OF THE RIGHTS TO  WHICH  THE
BUYER  IS  ENTITLED UNDER THIS ARTICLE INCLUDING SPECIFICALLY HIS OR HER
RIGHT TO CANCEL THE SALE IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTI-
CLE.
  4. NO SELLER, OR ANY AGENT OR  EMPLOYEE  THEREOF,  SHALL  DIRECTLY  OR
INDIRECTLY  REPRESENT  IN  ANY MANNER DURING A SALES PRESENTATION THAT A
CONSUMER MUST SIGN AN AGREEMENT ON THE SAME DAY AS SUCH PRESENTATION  IN
ORDER TO AVOID A LIFETIME PROHIBITION ON PURCHASING DISCOUNT BUYING CLUB
SERVICES FROM SUCH SELLER.
  S  641-D.  ENFORCEMENT;  PENALTIES.  1.  WHENEVER  THERE  SHALL  BE  A
VIOLATION OF THE PROVISIONS OF THIS ARTICLE, 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  ARTICLE,  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  RESTITU-
TION.  WHENEVER THE COURT SHALL DETERMINE THAT A VIOLATION OF THIS ARTI-
CLE HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF NOT MORE  THAN
ONE  THOUSAND  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.
  2.  NOTHING  IN THIS SECTION SHALL IN ANY WAY LIMIT RIGHTS OR REMEDIES
WHICH ARE OTHERWISE AVAILABLE UNDER LAW TO THE ATTORNEY GENERAL.
  S 2. If any provision of article 30-B of the general business law,  as
added  by  section one of this act, or the application of such provision
in certain circumstances shall be held  invalid,  the  validity  of  the
remainder  of  such article and its applicability to other circumstances
shall not be affected.
  S 3. This act shall take effect on the first of January next  succeed-
ing the date upon which it shall have become a law.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 593--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
  tee on Consumer Affairs and Protection -- reported and referred to the
  Committee  on  Codes  --  committee  discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the general business law, in relation  to  enacting  the
  discount buying club consumer protection act

  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 article
30-B to read as follows:
                              ARTICLE 30-B
              DISCOUNT BUYING CLUB CONSUMER PROTECTION ACT
SECTION 641.   SHORT TITLE.
        641-A. DEFINITIONS.
        641-B. BUYER'S OR OTHER OBLIGOR'S RIGHT TO CANCEL.
        641-C. FORM OF NOTICE; STATEMENT OF BUYER'S RIGHTS.
        641-D. ENFORCEMENT; PENALTIES.
  S 641. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY  BE  CITED  AS
THE "DISCOUNT BUYING CLUB CONSUMER PROTECTION ACT".
  S  641-A.  DEFINITIONS.  AS  USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL MEAN:
  1. "BUSINESS DAY" SHALL EXCLUDE SATURDAYS, SUNDAYS, HOLIDAYS  AND,  IN
THE  EVENT THAT THE BUYER PERSONALLY DELIVERS THE CANCELLATION NOTICE TO
THE CLUB, DAYS ON WHICH THE SELLER OF THE BUYER'S AGREEMENT IS CLOSED.
  2. "BUYER" AS USED IN THIS ARTICLE MEANS  ANY  INDIVIDUAL  WHO  ENTERS
INTO AN AGREEMENT FOR SERVICES WITH A DISCOUNT BUYING CLUB.
  3.  "DISCOUNT  BUYING  CLUB"  MEANS  ANY  PERSON, FIRM OR CORPORATION,
WHICH, IN EXCHANGE FOR VALUABLE CONSIDERATION,  OFFERS  TO  SELL  OR  TO
ARRANGE THE SALE OF GOODS OR SERVICES TO ITS CUSTOMERS AT PRICES REPRES-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02887-02-3
              

A. 593--A                           2

ENTED  TO  BE  LOWER  THAN  ARE GENERALLY AVAILABLE. SUCH TERM SHALL NOT
INCLUDE:
  (A)  ANY  COOPERATIVE  BUYING  ASSOCIATION  OR OTHER GROUP IN WHICH NO
PERSON IS INTENDED TO PROFIT OR ACTUALLY PROFITS BEYOND THE BENEFIT THAT
ALL MEMBERS RECEIVE FROM BUYING AT A DISCOUNT;
  (B) ANY PERSON, FIRM OR CORPORATION THAT:
  (I) FOR FIFTY DOLLARS OR LESS SELLS TICKETS OR COUPONS VALID  FOR  USE
IN OBTAINING GOODS OR SERVICES FROM A RETAIL MERCHANT; OR
  (II)  AS  A  SERVICE  COLLATERAL TO ITS PRINCIPAL BUSINESS, AND FOR NO
ADDITIONAL CHARGE, ARRANGES FOR ITS MEMBERS OR CUSTOMERS TO PURCHASE  OR
LEASE DIRECTLY FROM PARTICULAR MERCHANTS AT A SPECIFIED DISCOUNT; OR
  (III)  CHARGES  AN  ADVANCE FEE FOR ACCESS TO SERVICE, OR MEMBER BENE-
FITS, AND ALLOWS THE BUYER TO  TERMINATE  MEMBERSHIP  BY  NOTIFYING  THE
PERSON,  FIRM  OR  CORPORATION OF INTENT TO TERMINATE MEMBERSHIP WITHOUT
FURTHER OBLIGATION TO MAKE ADDITIONAL PAYMENTS.
  4. "SELLER" SHALL MEAN ANY PERSON, PARTNERSHIP, CORPORATION OR ASSOCI-
ATION ENGAGED IN THE SALE OF DISCOUNT BUYING CLUB SERVICES.
  S 641-B. BUYER'S OR OTHER OBLIGOR'S RIGHT TO CANCEL. 1. IN ADDITION TO
ANY RIGHT OTHERWISE TO REVOKE AN OFFER, THE BUYER MAY CANCEL A  DISCOUNT
BUYING CLUB AGREEMENT UNTIL MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE
DAY  ON  WHICH  THE BUYER HAS SIGNED THE AGREEMENT. SUCH AGREEMENT SHALL
IMPOSE NO LIABILITY ON THE BUYER FOR SUCH CANCELLATION. THE SELLER SHALL
PROVIDE A REFUND OF ANY FEE PAID BY THE BUYER NOT  MORE  THAN  TEN  DAYS
AFTER SUCH CANCELLATION.
  2. CANCELLATION OCCURS WHEN WRITTEN NOTICE OF CANCELLATION IS GIVEN TO
THE  SELLER.  NOTICE OF CANCELLATION NEED NOT TAKE A PARTICULAR FORM AND
IS SUFFICIENT IF IT INDICATES, BY ANY FORM OF  WRITTEN  EXPRESSION,  THE
INTENTION  OR  DESIRE  OF  THE  BUYER TO CANCEL THE DISCOUNT BUYING CLUB
AGREEMENT.
  3. NOTICE OF CANCELLATION, IF GIVEN BY MAIL,  SHALL  BE  DEEMED  GIVEN
WHEN DEPOSITED IN A MAILBOX PROPERLY ADDRESSED AND POSTAGE PREPAID.
  S 641-C. FORM OF NOTICE; STATEMENT OF BUYER'S RIGHTS. 1. IN A DISCOUNT
BUYING CLUB SERVICE SALE, THE SELLER SHALL FURNISH TO THE BUYER:
  (A)  A  FULLY COMPLETED RECEIPT OR COPY OF ANY AGREEMENT PERTAINING TO
SUCH SALE AT THE TIME OF ITS EXECUTION, WHICH IS IN THE  SAME  LANGUAGE,
E.G.    SPANISH, AS THAT PRINCIPALLY USED IN THE ORAL SALES PRESENTATION
AND WHICH SHOWS THE DATE OF THE TRANSACTION AND CONTAINS  THE  NAME  AND
ADDRESS  OF THE SELLER, AND IN IMMEDIATE PROXIMITY TO THE SPACE RESERVED
IN THE AGREEMENT FOR THE SIGNATURE OF THE BUYER AND  IN  NOT  LESS  THAN
TWELVE-POINT  BOLD FACE TYPE, A STATEMENT IN SUBSTANTIALLY THE FOLLOWING
FORM:
  "YOU, THE BUYER, MAY CANCEL THIS TRANSACTION  AT  ANY  TIME  PRIOR  TO
MIDNIGHT  OF  THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION.
SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF  THIS
RIGHT."; AND
  (B)  AT THE TIME THE BUYER SIGNS THE DISCOUNT BUYING CLUB AGREEMENT, A
COMPLETED FORM IN DUPLICATE, CAPTIONED "NOTICE OF  CANCELLATION",  WHICH
SHALL  BE  ATTACHED  TO  THE  AGREEMENT AND EASILY DETACHABLE, AND WHICH
SHALL CONTAIN IN NOT LESS THAN TWELVE-POINT BOLD FACE TYPE THE FOLLOWING
INFORMATION AND STATEMENTS IN THE SAME LANGUAGE, E.G. SPANISH,  AS  THAT
USED IN THE AGREEMENT:
                         NOTICE OF CANCELLATION
  (ENTER DATE OF TRANSACTION) _________________________________________
  (DATE)
  YOU  MAY  CANCEL  THIS TRANSACTION, WITHOUT ANY PENALTY OR OBLIGATION,
WITHIN THREE BUSINESS DAYS FROM THE ABOVE DATE.

A. 593--A                           3

  IF YOU CANCEL, ANY PAYMENTS MADE BY YOU UNDER THE  AGREEMENT  AND  ANY
NEGOTIABLE  INSTRUMENT EXECUTED BY YOU WILL BE RETURNED WITHIN TEN BUSI-
NESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR  CANCELLATION  NOTICE,
AND  ANY  SECURITY  INTEREST  ARISING  OUT  OF  THE  TRANSACTION WILL BE
CANCELLED.  TO  CANCEL  THIS  TRANSACTION,  MAIL OR DELIVER A SIGNED AND
DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE TO
  (NAME OF SELLER),                            AT  (ADDRESS  OF  SELLER)
__________________
  _________________________________
  (PLACE OF BUSINESS)                      NOT LATER THAN MIDNIGHT OF
  ____________________________________ (DATE)
  I HEREBY CANCEL THIS TRANSACTION.
  _________________ (DATE)
  ______________________________ (BUYER'S SIGNATURE)
THE  SELLER SHALL COMPLETE BOTH COPIES BY ENTERING THE NAME OF THE SELL-
ER, THE ADDRESS OF THE SELLER'S PLACE OF BUSINESS, THE DATE OF THE TRAN-
SACTION, AND THE DATE, NOT EARLIER THAN THE THIRD BUSINESS DAY FOLLOWING
THE DATE OF THE TRANSACTION, BY WHICH  THE  BUYER  MAY  GIVE  NOTICE  OF
CANCELLATION.
  2.  THE  SELLER  SHALL  INFORM EACH BUYER ORALLY AT THE TIME HE OR SHE
SIGNS THE AGREEMENT OF HIS OR HER RIGHT TO CANCEL.
  3. THE SELLER SHALL INFORM EACH  BUYER  IN  A  CLEAR  AND  CONSPICUOUS
MANNER PRIOR TO A CONSUMER SIGNING A CONTRACT FOR A DISCOUNT BUYING CLUB
AGREEMENT, THE RANGE OF COSTS OF SUCH AGREEMENT.
  4.  A  DISCOUNT BUYING CLUB AGREEMENT OR RECEIPT SHALL NOT INCLUDE ANY
CONFESSION OF JUDGMENT OR ANY WAIVER OF ANY OF THE RIGHTS TO  WHICH  THE
BUYER  IS  ENTITLED UNDER THIS ARTICLE INCLUDING SPECIFICALLY HIS OR HER
RIGHT TO CANCEL THE SALE IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTI-
CLE.
  5. NO SELLER, OR ANY AGENT OR EMPLOYEE THEREOF, SHALL:
  (A) DIRECTLY OR INDIRECTLY REPRESENT IN  ANY  MANNER  DURING  A  SALES
PRESENTATION  THAT  A CONSUMER MUST SIGN AN AGREEMENT ON THE SAME DAY AS
SUCH PRESENTATION IN ORDER TO AVOID A LIFETIME PROHIBITION ON PURCHASING
DISCOUNT BUYING CLUB SERVICES FROM SUCH SELLER;
  (B) USE TERMS SUCH AS "FREE," OR ANY OTHER TERM OF SIMILAR  IMPORT  OR
MEANING THAT WOULD LEAD A CONSUMER TO BELIEVE THAT HE OR SHE MAY RECEIVE
SOMETHING  OF VALUE ENTIRELY OR IN PART WITHOUT A REQUIREMENT OF COMPEN-
SATION IN ANY FORM, UNLESS ALL MATERIAL TERMS, RESTRICTIONS AND  LIMITA-
TIONS OF THE OFFER ARE CLEARLY AND CONSPICUOUSLY DISCLOSED IN THE ADVER-
TISING;
  (C) OFFER ANY GIFTS, SWEEPSTAKES OR PRIZES AS A SOLICITATION TO ATTEND
A  SALES  PRESENTATION  OPEN  TO THE PUBLIC OR TO SIGN A DISCOUNT BUYING
CLUB AGREEMENT UNLESS THE SELLER HONORS THE GIFT, PROMOTION  OR  PARTIC-
IPATION IN THE SWEEPSTAKES IN ACCORDANCE WITH THE TERMS OF ITS PROMISE;
  (D)  OFFER  FREE  TRIAL  MEMBERSHIPS WITHOUT CLEARLY AND CONSPICUOUSLY
DISCLOSING MATERIAL RESTRICTIONS, LIMITATIONS AND CONDITIONS,  INCLUDING
ANY  RESTRICTIONS  ON  THE  BRANDS AND AMOUNT OF MERCHANDISE THAT CAN BE
PURCHASED;
  (E) FAIL TO CLEARLY AND CONSPICUOUSLY DISCLOSE PRIOR TO THE SALE OF  A
CLUB  MEMBERSHIP  ANY  COSTS  AND FEES ADDED TO THE PRICE OF MERCHANDISE
INCLUDING, BUT NOT LIMITED TO, FREIGHT AND SHIPPING COSTS, HANDLING FEES
AND POTENTIAL MANUFACTURER OR SUPPLIER PRICE INCREASES;
  (F) IF APPLICABLE, FAIL TO CLEARLY AND CONSPICUOUSLY DISCLOSE PRIOR TO
THE SALE OF A CLUB MEMBERSHIP THAT:
  (I) THE FULL PRICE OF THE MERCHANDISE, PLUS APPLICABLE CHARGES,  WOULD
BE REQUIRED AT THE TIME OF PLACEMENT OF THE ORDER; AND

A. 593--A                           4

  (II) THE MANUFACTURER OF THE ORDERED MERCHANDISE DETERMINES THE REFUND
AND  CANCELLATION POLICY AND IS THE WARRANTOR OF SAID MERCHANDISE RATHER
THAN THE SELLER; OR
  (G)  SEEK  TO  ENFORCE  IN ANY LEGAL ACTION AND REFER OR REPORT TO ANY
CONSUMER REPORTING AGENCY, AS SUCH TERM  IS  DEFINED  IN  SECTION  THREE
HUNDRED  EIGHTY-A  OF  THIS  CHAPTER,  A BUYER'S FAILURE TO MAKE PAYMENT
UNDER ANY RETAIL INSTALLMENT CONTRACT, OBLIGATION  OR  CREDIT  AGREEMENT
PURCHASED OR ACQUIRED AND CURRENTLY MAINTAINED BY A SALES FINANCE COMPA-
NY THAT IS NOT LICENSED IN THE STATE IN COMPLIANCE WITH ARTICLE ELEVEN-B
OF THE BANKING LAW.
  S  641-D.  ENFORCEMENT;  PENALTIES.  1.  WHENEVER  THERE  SHALL  BE  A
VIOLATION OF THE PROVISIONS OF THIS ARTICLE, 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  ARTICLE,  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  RESTITU-
TION.  WHENEVER THE COURT SHALL DETERMINE THAT A VIOLATION OF THIS ARTI-
CLE HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF NOT MORE  THAN
ONE  THOUSAND  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.
  2.  NOTHING  IN THIS SECTION SHALL IN ANY WAY LIMIT RIGHTS OR REMEDIES
WHICH ARE OTHERWISE AVAILABLE UNDER LAW TO THE ATTORNEY GENERAL.
  S 2. If any provision of article 30-B of the general business law,  as
added  by  section one of this act, or the application of such provision
in certain circumstances shall be held  invalid,  the  validity  of  the
remainder  of  such article and its applicability to other circumstances
shall not be affected.
  S 3. This act shall take effect on the first of January next  succeed-
ing the date upon which it shall have become a law.