BILL NUMBER: S1314
SPONSOR: GOUNARDES
 
TITLE OF BILL:
An act to amend the general business law, in relation to false represen-
tation of affiliation or approval of state or local agencies
 
PURPOSE OR GENERAL IDEA OF BILL:
To clarify that the prohibition on false or misleading advertising in
New York State's General Business Law includes a false impression of
government correspondence
 
SUMMARY OF PROVISIONS:
Section one of this bill amends Section 350-a of the General Business
Law to provide that false impressions of official government correspond-
ence shall be considered false advertising and prohibited under Article
22-a of GBL, which declares deceptive acts and practices unlawful.
Section two of this bill sets the effective date.
 
JUSTIFICATION:
New York's landmark consumer protection law, Article 22-A of the General
Business Law, renders deceptive "acts or practices in the conduct of any
business, trade or commerce or in the furnishing of any service" unlaw-
ful. Any person or firm in violation of this statute is subject to a
state right of action from the Attorney General, a private right of
action from injured parties, and civil penalties. The law makes specific
mention of certain nefarious practices and tactics such as pension
poaching for Veterans Affairs benefits and deceitful marketing by energy
service companies (ESCOs). It also provides an additional civil penalty
of up to $10,000 for persons or firms who willfully target seniors, in
recognition of the vulnerable nature of this particular subset of
consumers.
Missing from this statute, however, is an express prohibition on commer-
cial correspondence which purports to be affiliated with a government
entity. Examples of for-profit companies disguising sales pitches as
official and urgent government correspondence, from notices that a prop-
erty tax bill may be about to increase to declarations that a consumer
has been found eligible for Medicaid, abound. These predatory mailers
will frequently target senior citizens, who may have trouble reading the
fine print on the back of the envelope which states that the mail is not
affiliated with any government agency. While federal rules issued by the
Federal Trade Commission ban false or misleading representations of
governmental authority for debt collectors, there is no such blanket
prohibition for other industries.
This bill would amend New York's General Business Law to clarify that
mail which willfully creates a false impression of official correspond-
ence is considered false advertising and subject to all penalties there-
in described. It is the sponsor's hope that this change, if enacted,
would better protect seniors from predatory advertising while encourag-
ing companies to be clearer and more forthright about the products or
services they are selling.
 
PRIOR LEGISLATIVE HISTORY:
2024: S276 - Referred to Consumer Protection
2023: S276 - Referred to Consumer Protection
2022: S6731A - Referred to Consumer Protection
2021: S6731A - Referred to Consumer Protection
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law.