Bill Text: NY A09598 | 2023-2024 | General Assembly | Introduced

---

Bill Title: Prohibits food or beverage service establishments that are part of a chain with fifteen or more locations nationally from implementing surge pricing; provides exceptions; imposes a penalty.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-07-15 - enacting clause stricken [A09598 Detail]

Download: New_York-2023-A09598-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          9598

                   IN ASSEMBLY

                                     March 26, 2024
                                       ___________

        Introduced  by  M.  of  A.  ZEBROWSKI  --  read once and referred to the
          Committee on Consumer Affairs and Protection

        AN ACT to amend the general business law, in relation to prohibiting the
          practice of surge pricing by chain restaurants

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. The general business law is amended by adding a new section
     2  391-w to read as follows:
     3    §  391-w.  Surge  pricing prohibited. 1. For purposes of this section,
     4  the following terms shall have the following meanings:
     5    (a) "covered establishment" means a food or  beverage  service  estab-
     6  lishment  that  is  part  of  a  chain  with  fifteen  or more locations
     7  nationally doing business under the same  name  and  offering  for  sale
     8  substantially  the  same menu items, or a beverage service establishment
     9  or similar establishment that is not part of such a chain that voluntar-
    10  ily registers with the United States Food and Drug Administration to  be
    11  subject  to  the federal requirements for nutrition labeling of standard
    12  menu items pursuant to 21 CFR 101.11(d), or any successor regulation;
    13    (b) "dynamic pricing"  means  the  practice  of  both  increasing  and
    14  decreasing  prices,  based  on  market conditions, the season and supply
    15  changes; and
    16    (c) "surge pricing" means the practice of raising prices  when  demand
    17  for  a  service  is  strong and lowering prices when demand for goods or
    18  services is weak in the absence of changes  in  market  conditions,  the
    19  season and supply.
    20    2.  (a) No covered establishment shall engage in the practice of surge
    21  pricing.
    22    (b) The provisions of this subdivision shall not prohibit  the  imple-
    23  mentation  of  dynamic  pricing during certain periods including but not
    24  limited to early-bird specials, happy hours and  seasonal  specials,  or
    25  for packages and catering services.
    26    (c)  The  imposition  of an additional charge for patrons using third-
    27  party apps to order from covered establishments shall not be  considered
    28  to be a violation of this section.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14825-01-4
        A. 9598                             2

     1    3.  A violation of this section shall be punishable by a civil penalty
     2  of two hundred fifty dollars for each such occurrence.
     3    §  2.  This  act shall take effect on the ninetieth day after it shall
     4  have become a law.