BILL NUMBER: S3567
SPONSOR: CLEARE
TITLE OF BILL:
An act to amend the general business law, in relation to enacting the
"consumer protection and automotive transparency act"
PURPOSE:
This legislation, known as the "Consumer Protection and Automotive Tran-
sparency Act," aims to mandate transparency in automotive labeling,
specifically focusing on the accurate disclosure of materials used in
the interiors of automobiles. The bill seeks to prevent deceptive
marketing practices that mislead consumers about the composition of
seating surfaces, steering wheels, and gear shifters in the automotive
industry. By requiring clear and accurate labeling of interior materi-
als, this legislation aims to protect consumers both financially and
ethically.
SUMMARY OF PROVISIONS:
This legislation, known as the "Consumer Protection and Automotive Tran-
sparency Act," aims to mandate transparency in automotive labeling,
specifically focusing on the accurate disclosure of materials used in
the interiors of automobiles. The bill seeks to prevent deceptive
marketing practices that mislead consumers about the composition of
seating surfaces, steering wheels, and gear shifters in the automotive
industry. By requiring clear and accurate labeling of interior materi-
als, this legislation aims to protect consumers both financially and
ethically.
**SUMMARY OF PROVISIONS:**
1. **Labelling Requirements:** Automotive manufacturers are mandated to
clearly label the interior materials of vehicles using terms easily
understandable to the average consumer (equivalent to a 6th-grade read-
ing comprehension level). The labeling is required for seating surfaces
in all rows, headrests, steering wheel, and gear shift (Interactive
Interior Surfaces). The labeling threshold is based on the percent of
material used, and if the material is greater than 70% of a defined
composition, the entire label can reflect that material.
2. **Materials Description:** The bill defines terms such as Leather,
Fabric, and Plastic/Coated Material for use in labeling. If the Interac-
tive Interior Surface material is less than 70% of any defined material,
a label must specify the percentage composition.
3. **Prohibition:** Marketing names causing confusion and deceptive
practices, such as using terms like "leather" for materials not meeting
the defined characteristics, are prohibited.
4. 4. **Enforcement and Penalties:** The New York State Department Divi-
sion of Consumer Protection will enforce the provisions. Violations may
result in penalties, fines, or other enforcement measures determined by
the Department.
EXISTING LAW:
to amend the existing law: Executive Law, § 94-a, 553; General Business
Law, § 399-z, to include a regulation under the
NEW YORK CODES, RULES, AND REGULATIONS:
Title 19: Department of State Chapter VIII: Division of Consumer
Protection Part: - Automobile Interior Labeling Requirements Otherwise
known as 19 CRR-NY VIII
JUSTIFICATION:
Deceptive marketing practices within the automotive industry have led
consumers to make uninformed purchasing decisions, resulting in finan-
cial and ethical consequences. Existing laws lack the necessary
provisions to address these issues, emphasizing the need for the Consum-
er Protection and Automotive Transparency Act. This legislation seeks to
protect consumers by ensuring clear and accurate labeling of materials
used in automotive interiors, empowering them to make informed decisions
and fostering trust in the marketplace.
LEGISLATIVE HISTORY:
New Bill
FISCAL IMPLICATIONS:
The implementation of this legislation is expected to have positive
fiscal implications. By promoting transparency and informed consumer
Choices, the bill may reduce instances of consumer dissatisfaction and
related disputes, leading to potential cost savings in dispute resol-
ution processes. Additionally, the bill aims to create a fair and
competitive marketplace, potentially enhancing economic activities with-
in the automotive industry. The Department of Consumer Affairs may incur
enforcement-related costs, but the long-term benefits to consumers and
the marketplace are anticipated to outweigh these expenses.
EFFECTIVE DATE:
This legislation will take effect immediately.