BILL NUMBER: S4433
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 grocery retailers that offer delivery to clearly state any
pricing mark-ups on products over the 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 "grocery
store" "food retailer," and "third-party platform." Section 841 requires
that a grocery store, food retailer, or third-party platform disclose if
there is a difference in the price of a product ordered online relative
to the price of the product if it is bought in-store. The difference in
purchase price shall be clearly disclosed on the website or app. This
section also outlines penalties and states that the Secretary 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 has grown exponentially in the
past decade. These services are offered by traditional retailers through
their own websites and apps as well as through third-party services,
such as Instacart. They provide convenient delivery to customers. Howev-
er, retailers and services often mark up the prices of products over the
in-store price. This is 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 the mark-up price for each product, or the overall percentage if
they charge a blanket mark-up on all products. The goal is to provide
consumers transparency in deciding if they want to pay a higher price
for products for the sake of having them delivered. It does not outlaw
the practice, just requires companies to 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.