Bill Text: NY S02628 | 2019-2020 | General Assembly | Introduced


Bill Title: Prohibits the use of automated purchasing software to buy large quantities of goods for the purpose of retail resale of such goods.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2019-05-08 - ADVANCED TO THIRD READING [S02628 Detail]

Download: New_York-2019-S02628-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          2628
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 28, 2019
                                       ___________
        Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Internet and Technology
        AN ACT to amend the general business  law  and  the  executive  law,  in
          relation to automated purchasing software
          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  390-d to read as follows:
     3    §  390-d.  Automated  purchasing  software;  prohibited.  1.  For  the
     4  purposes  of  this section, the following terms shall have the following
     5  meanings:
     6    (a) "Automated purchasing software" shall mean  any  machine,  device,
     7  computer  program  or  computer  software that, on its own or with human
     8  assistance, bypasses security measures or access control  systems  on  a
     9  retail  goods  purchasing  platform,  or other controls or measures on a
    10  retail goods purchasing platform, that assist in implementing a limit on
    11  the number of any specific item of  goods  that  can  be  purchased,  to
    12  purchase any specific item of goods.
    13    (b)  "Retail  goods  purchasing  platform"  shall  mean a retail goods
    14  purchasing website, application, phone system, or other technology plat-
    15  form used to sell goods.
    16    2. (a) It shall be unlawful for any person, firm, corporation or other
    17  entity to utilize automated purchasing software to purchase goods.
    18    (b) It shall be unlawful for any person, firm,  corporation  or  other
    19  entity  to  knowingly  resell  or offer to resell any item of goods that
    20  such person, firm, corporation or other entity knows was obtained  using
    21  automated purchasing software.
    22    3.  Any  person,  firm,  corporation  or  other  entity  who knowingly
    23  utilizes automated purchasing software in order to purchase any item  of
    24  goods  shall  be subject to a civil penalty in an amount of no less than
    25  five hundred dollars and no more than one thousand five hundred  dollars
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08400-01-9

        S. 2628                             2
     1  for each such violation and shall forfeit all profits made from the sale
     2  of any such unlawfully obtained goods.
     3    4.  Any  person,  firm,  corporation or other entity who intentionally
     4  maintains any interest in or maintains any control of the  operation  of
     5  automated  purchasing  software  to purchase goods shall be subject to a
     6  civil penalty in an amount of no less than seven hundred  fifty  dollars
     7  and  no  more  than  one  thousand  five  hundred  dollars for each such
     8  violation and shall forfeit all profits made from the sale of  any  such
     9  unlawfully obtained goods.
    10    5.  Any  person, firm, corporation or other entity who knowingly sells
    11  or offers to sell any item of goods that such person, firm,  corporation
    12  or  other  entity knows was obtained using automated purchasing software
    13  shall be subject to a civil penalty in an amount of no  less  than  five
    14  hundred  dollars  and no more than one thousand five hundred dollars for
    15  each such violation and shall forfeit all profits made from the sale  of
    16  any such unlawfully obtained goods.
    17    6. Any person who is subject to a civil penalty under this section and
    18  has  been  assessed  a  penalty under this section in the previous three
    19  years shall be guilty of a violation and may be fined no less  than  one
    20  thousand  dollars  and  no more than five thousand dollars for each such
    21  violation and shall forfeit all profits from the sale of any such unlaw-
    22  fully obtained goods. In addition, a person  convicted  of  a  violation
    23  under this section may be required to forfeit any and all equipment used
    24  in the unlawful purchasing of goods.
    25    7.  The  consumer protection division of the department of state shall
    26  receive, compile and forward  to  the  attorney  general  complaints  of
    27  violations of the provisions of this section.
    28    8.  The  attorney  general  shall  have  jurisdiction  to  enforce the
    29  provisions of this section.
    30    9. Any aggrieved party that  has  been  injured  by  wrongful  conduct
    31  prescribed  by  this  section  may bring an action to recover all actual
    32  damages suffered as a result of any of such wrongful conduct. The  court
    33  in  its  discretion  may  award  damages up to three times the amount of
    34  actual damages. The court may enjoin the respondent  from  any  and  all
    35  activity prohibited under this section. The court may also award reason-
    36  able attorney's fees and costs.
    37    §  2. Subdivision 3 of section 94-a of the executive law is amended by
    38  adding a new paragraph 13-a to read as follows:
    39    (13-a) receive, compile and forward to the attorney general complaints
    40  of violations of section three hundred ninety-d of the general  business
    41  law prohibiting the use of automated purchasing software;
    42    §  3.  This  act shall take effect on the ninetieth day after it shall
    43  have become a law.
feedback