BILL NUMBER: S363
SPONSOR: GIANARIS
 
TITLE OF BILL:
An act to amend the general business law, in relation to clear and
conspicuous pricing practices regarding mandatory junk fees
 
PURPOSE:
To eliminate hidden junk fees by requiring sellers to display the total
price of a good or service, inclusive of all mandatory fees.
 
SUMMARY OF PROVISIONS:
Section one of the bill refers to the title of the act, the "New York
Junk Fee Prevention Act."
Section two of the bill amends the general business law by adding a new
§ 396-yy, which includes five subdivisions.
Subdivision 1 defines "mandatory fee" while making certain exceptions.
It also defines "total price" as the full price that a consumer must
pay, inclusive of all mandatory fees associated with the transaction.
Subdivision 2 requires any person or entity who solicits or facilitates
a purchase directly from a consumer to clearly and conspicuously display
the total price of a good or service, inclusive of all mandatory fees,
in every offer or advertisement in most circumstances, and disclosure of
mandatory fee exceptions prior to accepting payment.
Subdivision 3 relates to the enforcement of this section, authorizing
the attorney general to bring actions and seek injunctions. It also
allows private individuals adversely affected by violations of this
section to sue for damages.
Subdivision 4 sets forth compliance for those: providing broadband in
complying with the relevant federal regulations; financial institutions
which comply with listed federal standards; those imposing surcharges on
sales transactions where a consumer elects to use a credit card instead
of other payment means; and food service establishments which display
the percentage of automatic and mandatory gratuity to be charged.
Subdivision 5 provides that those subject to subdivision four of § 25.07
of the arts and cultural affairs law, and air carriers, shall not be
subject to the provisions of this section.
Section three of the bill relates to the effective date.
 
JUSTIFICATION:
Consumers have become all too familiar with the hidden costs of junk
fees. Rarely can someone complete a transaction without getting hit with
a service fee, fulfillment fee, convenience fee, or some other hidden
charge. These junk fees raise the prices of everything from concert
tickets and hotel bookings to car rentals and Internet services.
In addition to harming consumers, junk fees place honest businesses at a
competitive disadvantage. Companies that immediately disclose the total
price of their products inclusive of all mandatory fees - will often
lose customers to bad faith actors who advertise a lower charge but
actually charge more. By allowing junk fees to proliferate, the market
ends up rewarding companies that engage in predatory bait-and-switch
tactics while punishing those that are transparent with consumers.
Similar legislation has been enacted in California and Minnesota. Bills
have also been introduced in Alaska, Arizona, Colorado, Connecticut,
Hawaii, Illinois, North Carolina, Pennsylvania, Virginia, and at the
federal level.
 
LEGISLATIVE HISTORY:
2024: S7783-B (Gianaris) PASSED SENATE / A9192 (Lee) died in consumer
protection
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law.