BILL NUMBER: S9365
SPONSOR: MAY
 
TITLE OF BILL:
An act to amend the general business law, in relation to requiring
advertisements of a discounted price of a good or service have such
price be actually discounted from a bona fide regular price
 
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to protect consumers from deceptive pricing
practices by ensuring that advertised discounts are genuine and based on
a bona fide regular price. The bill strengthens existing false advertis-
ing law by clarifying when a price may legally be advertised as
discounted.
 
SUMMARY OF PROVISIONS:
This bill amends section 350-a of the General Business Law by adding a
new subdivision defining "discounted Price" and bona fide regular
price." The bill makes it false advertising to promote a price as
discounted unless it reflects a genuine reduction from a bona fide regu-
lar price, to advertise the amount or percentage of a discount unless it
is calculated based on that bona fide regular price, or to display a
prior price unless that price is in fact the bona fide regular price of
the good or service.
Section 2 sets the effective date.
 
JUSTIFICATION:
Consumers increasingly rely on advertised discounts when making purchas-
ing decision, yet many businesses advertise "sales" or discounts" based
on inflated or fictions original prices. These practices mislead consum-
ers into believing they are receiving a bargain when no real discount
exists.
This bill promotes transparency and fairness in the marketplace by
requiring that advertised discounts be based on prices that were actual-
ly offered for a reasonably substantial period of time. By clearly
defining deceptive discounting prices, the legislation strengthens
consumer protection, supports honest businesses, and enhanced enforce-
ment of existing false advertising laws.
 
PRIOR LEGISLATIVE HISTORY:
New Legislation.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become a law.

Statutes affected:
S9365: 350-a general business law