BILL NUMBER: S4433A
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the general business law, in relation to the disclosure
of pricing changes for online grocery delivery and online pick-up
services
 
PURPOSE:
To require food retailers that offer delivery to disclose the difference
in online and in store price.
 
SUMMARY OF PROVISIONS:
Section 1: Adds a new article 38-c to the General Business Law titled
"Online Sale of Groceries."
Section 840 adds definitions of "food retailer", "in store price",
"online price" and "third-party platform."
Section 841 requires food retailers to disclose whether the price of the
product online is higher or lower than the price of the product in the
store. This section also outlines penalties and states that the Secre-
tary of State shall promulgate rules and regulations as necessary to
carry out the provisions of this section.
Section 2: Establishes the effective date.
 
JUSTIFICATION:
Online ordering and delivery of groceries have grown exponentially in
the past decade. Traditional retailers offer these services through
their own websites/apps or through third-party services, such as Insta-
cart. They provide convenient delivery to customers. However, retailers
and services often mark up the prices of products over the in-store
price, in addition to any delivery or service fees charged. This markup
is not always clearly stated to the consumer. This legislation would
require grocery retailers and/or delivery services to state whether the
online price is greater or less than the in-store price. The goal is to
provide the consumer with transparency in deciding if they want to pay a
higher price for purchasing products online. It does not outlaw the
practice, just requires companies be open and transparent about what
mark-ups they are charging.
 
LEGISLATIVE HISTORY:
Senate
2024: S9277, Referred to Consumer Protection
Assembly
2024: A9194, Referred to Consumer Affairs and Protection
 
FISCAL IMPLICATIONS:
None to the State.
 
EFFECTIVE DATE:
This act shall take effect 90 days after it shall have become law.