Bill Text: NY S00205 | 2009-2010 | General Assembly | Introduced


Bill Title: Requires merchants to post notices of recalled products that are offered for sale in their business establishment; provides also for the giving of notice by mail to certain customers; provides for enforcement by the attorney general; authorizes a private right of action.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-01-06 - REFERRED TO CONSUMER PROTECTION [S00205 Detail]

Download: New_York-2009-S00205-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          205
                              2009-2010 Regular Sessions
                                   I N  S E N A T E
                                      (PREFILED)
                                    January 7, 2009
                                      ___________
       Introduced  by  Sen.  KRUGER -- read twice and ordered printed, and when
         printed to be committed to the Committee on Consumer Protection
       AN ACT to amend the general business law, in relation to notification of
         recalled products
         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  394-f to read as follows:
    3    S  394-F.  RECALLED  PRODUCTS.  1.  FOR  PURPOSES OF THIS SECTION, THE
    4  FOLLOWING TERMS SHALL HAVE THESE MEANINGS:
    5    (A) "SELLER" MEANS A PERSON, FIRM, CORPORATION, OR OTHER LEGAL  ENTITY
    6  ENGAGED  IN  THE  SALE,  DISPLAY  OR  OFFERING  FOR SALE, OF PRODUCTS OR
    7  MERCHANDISE AT RETAIL, INCLUDING MAIL ORDER  BUSINESSES  AS  DEFINED  IN
    8  SECTION  THREE  HUNDRED NINETY-SIX-M OF THIS ARTICLE AND TELEPHONE SALES
    9  BUSINESSES, AS DEFINED IN SECTION FOUR HUNDRED FORTY-ONE OF THE PERSONAL
   10  PROPERTY LAW.
   11    (B) "MANUFACTURER" MEANS A PERSON,  FIRM  OR  CORPORATION  ENGAGED  IN
   12  MANUFACTURING,  CONVERTING,  PROCESSING, ALTERING, REPAIRING, FINISHING,
   13  OR PREPARING FOR SALE, OR IMPORTING FOR DISTRIBUTION ANY PRODUCT IN THIS
   14  STATE.
   15    (C) "DISTRIBUTOR" MEANS A PERSON, FIRM, CORPORATION,  OR  OTHER  LEGAL
   16  ENTITY THAT SELLS OR DISTRIBUTES ANY PRODUCT IN THIS STATE.
   17    (D)  "CONSUMER"  MEANS ANY NATURAL PERSON WHO PURCHASES A PRODUCT THAT
   18  HAS BEEN RECALLED.
   19    (E) "RECALL OR RECALLED" SHALL MEAN A CORRECTIVE  OR  REMEDIAL  ACTION
   20  INVOLVING  THE  REPAIR  OR REPLACEMENT OF A PRODUCT OR THE REFUND OF THE
   21  PURCHASE PRICE OF A PRODUCT SOLD BY A MANUFACTURER.
   22    2. WITHIN THIRTY DAYS OF A SELLER'S RECEIVING NOTIFICATION OF A RECALL
   23  OR NOTICE OF A DEFECTIVE  OR  HAZARDOUS  PRODUCT  FROM  A  MANUFACTURER,
   24  DISTRIBUTOR,  OR  BY A FEDERAL OR STATE AGENCY, SUCH SELLER SHALL PROMI-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03092-01-9
       S. 205                              2
    1  NENTLY AND CONSPICUOUSLY DISPLAY SUCH NOTIFICATION IN  AN  AREA  READILY
    2  ACCESSIBLE TO THE PUBLIC, ADJACENT TO THE MAIN OR MAJOR ENTRANCE OF SUCH
    3  SELLER'S  PREMISES, FOR AT LEAST NINETY DAYS AFTER RECEIPT THEREOF. SUCH
    4  DISPLAY  SHALL  ALSO  BE  REQUIRED WITH RESPECT TO ANY RECALL NOTICE, OR
    5  NOTICE OF DEFECTS OR HAZARDS, VOLUNTARILY INITIATED OR  ISSUED  BY  SUCH
    6  SELLER.
    7    3.  SUCH  NOTIFICATION  AS REQUIRED BY SUBDIVISION TWO OF THIS SECTION
    8  SHALL INCLUDE INFORMATION IDENTIFYING THE  RECALLED  PRODUCT  INCLUDING,
    9  BUT  NOT  LIMITED TO, ANY SERIAL, MODEL, LOT OR CODE NUMBER OF THE PROD-
   10  UCT, INFORMATION DESCRIBING THE NATURE OF THE  PROBLEM  TO  WARRANT  THE
   11  RECALL AND INFORMATION CONCERNING REDEMPTION.
   12    4.  IN  ADDITION TO THE REQUIREMENTS DESCRIBED IN SUBDIVISIONS TWO AND
   13  THREE OF THIS  SECTION,  WITHIN  THIRTY  DAYS  OF  A  MANUFACTURER'S  OR
   14  DISTRIBUTOR'S  RECEIVING OR DETERMINING THAT NOTIFICATION OF A RECALL OR
   15  NOTICE OF A DEFECTIVE OR HAZARDOUS PRODUCT MUST  BE  MADE,  SUCH  NOTICE
   16  SHALL  BE MAILED BY SUCH MANUFACTURER OR DISTRIBUTOR TO ALL CONSUMERS OF
   17  SUCH RECALLED PRODUCT OF WHOM THE MANUFACTURER OR DISTRIBUTOR IS  AWARE.
   18  THOSE  WHOM  THE  MANUFACTURER  OR DISTRIBUTOR IS AWARE OF SHALL INCLUDE
   19  THOSE CONSUMERS WHO EITHER FILED A WARRANTY REGISTRATION  CARD,  OWNER'S
   20  REGISTRATION  CARD,  OR OTHER SIMILAR FORM.  THE NOTICE SHALL BE SENT BY
   21  FIRST CLASS MAIL AND SHALL HAVE "SAFETY RECALL NOTICE" PRINTED  IN  BOLD
   22  TYPE ON THE OUTSIDE OF THE ENVELOPE.
   23    5.  AFTER  RECEIPT  OF  A  RECALL  NOTICE  OR NOTICE OF A DEFECTIVE OR
   24  HAZARDOUS PRODUCT FROM A MANUFACTURER OR DISTRIBUTOR OR FROM  A  FEDERAL
   25  OR  STATE  AGENCY,  A  MAIL  ORDER  BUSINESS AS DEFINED IN SECTION THREE
   26  HUNDRED NINETY-SIX-M OF THIS ARTICLE, SHALL, IN BOLD  TYPE,  PROMINENTLY
   27  DISCLOSE  THE  SAME  TO  CONSUMERS IN AT LEAST TWO SUBSEQUENT ADVERTISE-
   28  MENTS, CATALOGS, CIRCULARS OR PROMOTIONAL MATERIALS. A  TELEPHONE  SALES
   29  BUSINESS  AS  DEFINED  IN SECTION FOUR HUNDRED FORTY-ONE OF THE PERSONAL
   30  PROPERTY LAW SHALL, WITHIN THIRTY DAYS AFTER RECEIPT OF A RECALL  NOTICE
   31  OR  NOTICE  OF  A DEFECTIVE OR HAZARDOUS PRODUCT, NOTIFY THE CONSUMER OF
   32  THE SAME BY FIRST CLASS MAIL. SUCH NOTICE MAY BE COMBINED WITH ANY OTHER
   33  COMMUNICATION PROVIDED THAT THE NOTICE IS PROMINENT AND CONSPICUOUS  AND
   34  IS HEADED WITH "SAFETY RECALL NOTICE" IN BOLD TYPE.
   35    6.  WHENEVER  THERE  SHALL BE A VIOLATION OF THIS SECTION, APPLICATION
   36  MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF  THE  PEOPLE  OF  THE
   37  STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION BY A SPECIAL
   38  PROCEEDING  TO  ISSUE AN INJUNCTION, AND UPON NOTICE TO THE DEFENDANT OF
   39  NOT LESS THAN FIVE DAYS, TO ENJOIN AND RESTRAIN THE CONTINUANCE OF  SUCH
   40  VIOLATIONS;  AND  IF IT SHALL APPEAR TO THE SATISFACTION OF THE COURT OR
   41  JUSTICE THAT THE DEFENDANT HAS, IN  FACT,  VIOLATED  THIS  SECTION,  THE
   42  INJUNCTION  MAY  BE  ISSUED  BY  SUCH  COURT  OR  JUSTICE, ENJOINING AND
   43  RESTRAINING ANY FURTHER VIOLATION,  WITHOUT  REQUIRING  PROOF  THAT  ANY
   44  PERSON  HAS,  IN  FACT,  BEEN  INJURED  OR  DAMAGED THEREBY. IN ANY SUCH
   45  PROCEEDING, THE COURT MAY MAKE ALLOWANCES TO  THE  ATTORNEY  GENERAL  AS
   46  PROVIDED  IN  PARAGRAPH  SIX  OF SUBDIVISION (A) OF SECTION EIGHTY-THREE
   47  HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES, AND  DIRECT  RESTITU-
   48  TION.  WHENEVER  THE  COURT  SHALL  DETERMINE  THAT  A VIOLATION OF THIS
   49  SECTION HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF  NOT  MORE
   50  THAN  FIVE  HUNDRED  DOLLARS  FOR EACH VIOLATION. THE COURT MAY IMPOSE A
   51  CIVIL PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS FOR  EACH  VIOLATION
   52  IF  THE  VIOLATION  IS  KNOWING AND WILLFUL. IN CONNECTION WITH ANY SUCH
   53  PROPOSED APPLICATION, THE ATTORNEY GENERAL IS AUTHORIZED TO  TAKE  PROOF
   54  AND MAKE A DETERMINATION OF THE RELEVANT FACTS AND TO ISSUE SUBPOENAS IN
   55  ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
       S. 205                              3
    1    7.  ANY PERSON WHO HAS BEEN INJURED BY REASON OF ANY VIOLATION OF THIS
    2  SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME TO RECOVER HIS OR HER
    3  ACTUAL DAMAGES OR ONE HUNDRED FIFTY DOLLARS, WHICHEVER IS  GREATER.  THE
    4  COURT MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES TO AN AMOUNT
    5  NOT TO EXCEED THREE TIMES THE ACTUAL DAMAGES UP TO ONE THOUSAND DOLLARS,
    6  IF  THE  COURT  FINDS THE DEFENDANT WILLFULLY OR KNOWINGLY VIOLATED THIS
    7  SECTION. THE COURT MAY AWARD REASONABLE ATTORNEYS FEES TO  A  PREVAILING
    8  PLAINTIFF.
    9    S  2.  This  act shall take effect on the ninetieth day after it shall
   10  have become a law.
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