Bill Text: NY S03915 | 2009-2010 | General Assembly | Introduced


Bill Title: Requires persons selling or offering to sell weight loss services or weight loss products to provide consumers with a weight loss and dieting information notice; sets forth such notice which includes the dangers of rapid weight loss, dieting information, risks associated with certain medications used with weight loss programs; delineates deceptive practices; provides for penalties, including fines and injunctions; further provides for attorney general enforcement.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2010-01-06 - REFERRED TO CONSUMER PROTECTION [S03915 Detail]

Download: New_York-2009-S03915-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3915
                              2009-2010 Regular Sessions
                                   I N  S E N A T E
                                     April 6, 2009
                                      ___________
       Introduced by Sens. LANZA, SAVINO -- 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 requiring
         persons offering weight loss services to  provide  notice  of  certain
         risks
         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 article
    2  30-B to read as follows:
    3                                 ARTICLE 30-B
    4                            WEIGHT LOSS SERVICES
    5  SECTION 641. WEIGHT LOSS SERVICES AND PRODUCTS.
    6          642. WEIGHT LOSS SERVICES; NOTICE.
    7          643. DECEPTIVE PRACTICES.
    8          644. LOCAL REGULATION.
    9          645. PENALTIES.
   10    S 641. WEIGHT LOSS SERVICES AND PRODUCTS. FOR  THE  PURPOSES  OF  THIS
   11  ARTICLE:
   12    1. "WEIGHT LOSS SERVICES" SHALL MEAN COUNSELING AND EDUCATIONAL ACTIV-
   13  ITIES,  INCLUDING,  BUT  NOT  LIMITED TO, RECOMMENDING THE USE OF WEIGHT
   14  LOSS PRODUCTS, WHICH HAVE THE PRIMARY  PURPOSE  OF  HELPING  INDIVIDUALS
   15  REDUCE  BODY  WEIGHT.    WEIGHT LOSS SERVICES DOES NOT INCLUDE PROVIDING
   16  INFORMATION TO THE PUBLIC REGARDING INDIVIDUAL WEIGHT LOSS  PRODUCTS  IF
   17  THE PERSON, FIRM OR CORPORATION IS NOT ALSO ENGAGED IN COUNSELING ACTIV-
   18  ITIES.
   19    2.  "WEIGHT LOSS PRODUCTS" SHALL MEAN ANY FOODS, INGREDIENTS OR COMPO-
   20  NENTS OF FOODS, NUTRITIONAL FORMULAS OR SUPPLEMENTS, DRUGS, EQUIPMENT OR
   21  ANY OTHER PRODUCTS SOLD OR OFFERED FOR THE PRIMARY  PURPOSE  OF  HELPING
   22  INDIVIDUALS REDUCE BODY WEIGHT.
   23    3.  "DIRECT  SELLER"  SHALL  MEAN ANY PERSON IF (A) SUCH PERSON IS (I)
   24  ENGAGED IN THE TRADE OR BUSINESS OF SELLING OR SOLICITING  THE  SALE  OF
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05431-02-9
       S. 3915                             2
    1  CONSUMER  PRODUCTS TO ANY BUYER ON A BUY-SELL BASIS OR A DEPOSIT-COMMIS-
    2  SION BASIS FOR RESALE BY THE BUYER OR ANY OTHER PERSON IN  THE  HOME  OR
    3  OTHERWISE  THAN  IN A PERMANENT RETAIL ESTABLISHMENT, OR (II) ENGAGED IN
    4  THE  TRADE  OR  BUSINESS  OF  SELLING OR SOLICITING THE SALE OF CONSUMER
    5  PRODUCTS IN THE HOME OR OTHERWISE THAN IN A PERMANENT RETAIL  ESTABLISH-
    6  MENT;
    7    (B)  SUBSTANTIALLY  ALL THE REMUNERATION, WHETHER OR NOT PAID IN CASH,
    8  FOR THE PERFORMANCE OF THE SERVICES DESCRIBED IN PARAGRAPH (A)  OF  THIS
    9  SUBDIVISION  IS DIRECTLY RELATED TO SALES OR OTHER OUTPUT, INCLUDING THE
   10  PERFORMANCE OF SERVICES, RATHER THAN TO THE NUMBER OF HOURS WORKED; AND
   11    (C) THE SERVICES PERFORMED BY THE PERSON ARE PERFORMED PURSUANT  TO  A
   12  WRITTEN  CONTRACT  BETWEEN  SUCH  PERSON  AND  THE  PERSON  FOR WHOM THE
   13  SERVICES ARE PERFORMED AND SUCH CONTRACT PROVIDES THAT THE  PERSON  WILL
   14  NOT  BE  TREATED  AS AN EMPLOYEE WITH RESPECT TO SUCH SERVICES FOR STATE
   15  AND FEDERAL TAX PURPOSES.
   16    S 642. WEIGHT LOSS SERVICES; NOTICE. 1. ANY  PERSON,  FIRM  OR  CORPO-
   17  RATION  OFFERING  WEIGHT  LOSS  SERVICES  OR  WEIGHT  LOSS  SERVICES AND
   18  PRODUCTS IN THIS STATE BY MEANS OF SELLING  OR  OFFERING  TO  SELL  SUCH
   19  SERVICES OR PRODUCTS TO THE PUBLIC SHALL EITHER (I) CONSPICUOUSLY POST A
   20  SIGN, MEASURING AT LEAST NINE INCHES BY FOURTEEN INCHES, WHERE CONSUMERS
   21  ARE  OFFERED THE SERVICES OR PRODUCTS, IN WRITING, IN AT LEAST TEN POINT
   22  PRINT, OR (II) PROVIDE IN WRITING, IN AT LEAST TEN POINT PRINT, TO INDI-
   23  VIDUALS AND CONSUMERS PRIOR TO THE PURCHASE OF SUCH  GOODS  OR  SERVICES
   24  THE  FOLLOWING  NOTICE OR SOME OTHER NOTICE WHICH SUBSTANTIALLY CONTAINS
   25  OR PROVIDES THE FOLLOWING INFORMATION.
   26                      WEIGHT LOSS AND DIETING INFORMATION
   27    A. WARNING! RAPID WEIGHT LOSS MAY CAUSE SERIOUS HEALTH PROBLEMS. RAPID
   28  WEIGHT LOSS IS WEIGHT LOSS OF MORE THAN 1 1/2 TO 2 POUNDS  PER  WEEK  OR
   29  WEIGHT  LOSS  OF  MORE  THAN 1 PERCENT OF BODY WEIGHT PER WEEK AFTER THE
   30  SECOND WEEK OF PARTICIPATION IN A WEIGHT LOSS PROGRAM.
   31    B. CONSULT YOUR PHYSICIAN BEFORE STARTING ANY WEIGHT LOSS  PROGRAM  OR
   32  USING ANY DIET MEDICATIONS OR FORMULAS.
   33    C.  LONG  TERM WEIGHT CONTROL IS THE SAFEST AND MOST IMPORTANT GOAL OF
   34  ANY DIET PROGRAM. PERMANENT LIFESTYLE CHANGES SUCH AS EATING  NUTRITIOUS
   35  FOODS,  CALORIE  CONTROL  AND  INCREASING PHYSICAL ACTIVITY HELP PROMOTE
   36  LONG TERM WEIGHT LOSS ACCORDING TO MEDICAL EXPERTS.
   37    D. ASK THE PERSON PROVIDING OR SELLING YOU WEIGHT LOSS ADVICE OR  DIET
   38  PRODUCTS,  MEDICATIONS OR FORMULAS ABOUT THEIR QUALIFICATIONS AND TRAIN-
   39  ING IN NUTRITION AND HEALTH.
   40    E. YOU HAVE THE RIGHT TO:
   41    (I) ASK QUESTIONS ABOUT THE POTENTIAL HEALTH RISKS OF THIS PROGRAM  OR
   42  PRODUCT,  ITS  NUTRITIONAL  CONTENT,  AND  ITS PSYCHOLOGICAL-SUPPORT AND
   43  EDUCATIONAL COMPONENTS;
   44    (II) KNOW THE PRICE OF TREATMENT, INCLUDING THE  PRICE  OF  ANY  EXTRA
   45  PRODUCTS, SERVICES, SUPPLEMENTS AND LABORATORY TESTS; AND
   46    (III) KNOW THE PROGRAM DURATION OF THE PROGRAM RECOMMENDED TO YOU.
   47    2.  THE  PROVISIONS OF THIS SECTION SHALL NOT APPLY TO DIRECT SELLERS,
   48  RETAIL STORES OR PHARMACIES SELLING WEIGHT LOSS PRODUCTS  AND  PROVIDING
   49  INFORMATION  TO  THE  PUBLIC  REGARDING INDIVIDUAL PRODUCTS, UNLESS SUCH
   50  BUSINESSES OFFER BOTH WEIGHT LOSS SERVICES  AND  WEIGHT  LOSS  PRODUCTS.
   51  FURTHERMORE,  THE  PROVISIONS  OF THIS SECTION SHALL NOT APPLY TO WEIGHT
   52  LOSS SERVICES PROVIDED TO AN INDIVIDUAL BY ANY PERSON,  FIRM  OR  CORPO-
   53  RATION  WHICH  PROVIDES WEIGHT LOSS SERVICES INCIDENTAL TO THEIR PRIMARY
   54  PROFESSIONAL SERVICES TO SUCH INDIVIDUAL AND WHICH  DOES  NOT  OFFER  TO
   55  SELL WEIGHT LOSS SERVICES OR WEIGHT LOSS PRODUCTS TO THE PUBLIC.
       S. 3915                             3
    1    3.  THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO ANY PERSON, FIRM
    2  OR CORPORATION WHOSE SALE OR ADVERTISING  OF  WEIGHT  LOSS  SERVICES  OR
    3  PRODUCTS  COMPLIES  WITH  THE  RULES, REGULATIONS, BINDING DECISIONS AND
    4  ORDERS OF, AND THE STATUTES ADMINISTERED BY, THE FEDERAL  TRADE  COMMIS-
    5  SION  OR  ANY OFFICIAL DEPARTMENT, DIVISION, COMMISSION OR AGENCY OF THE
    6  UNITED STATES AS SUCH RULES, REGULATIONS, BINDING DECISIONS, ORDERS,  OR
    7  STATUTES ARE INTERPRETED BY THE FEDERAL TRADE COMMISSION OR SUCH DEPART-
    8  MENT,  DIVISION, COMMISSION OR AGENCY OR THE FEDERAL COURTS, AND AS SUCH
    9  RULES, REGULATIONS, BINDING DECISIONS, ORDERS, OR STATUTES APPLY TO  THE
   10  SALE OR ADVERTISING OF WEIGHT LOSS SERVICES OR PRODUCTS.
   11    S 643. DECEPTIVE PRACTICES. IT SHALL BE A DECEPTIVE TRADE PRACTICE FOR
   12  ANY  PERSON,  FIRM  OR  CORPORATION  OFFERING  OR  PROVIDING WEIGHT LOSS
   13  SERVICES OR WEIGHT LOSS PRODUCTS TO MISREPRESENT, DIRECTLY OR  INDIRECT-
   14  LY:
   15    1.  THE POTENTIAL HEALTH RISKS OF THE WEIGHT LOSS SERVICES OR PRODUCTS
   16  OFFERED;
   17    2. THE SUCCESS OF PARTICIPANTS  USING  THE  WEIGHT  LOSS  SERVICES  OR
   18  PRODUCTS  OFFERED  IN  ACHIEVING  OR  MAINTAINING  WEIGHT LOSS OR WEIGHT
   19  CONTROL. ANY REPRESENTATION OF SUCCESSFUL WEIGHT LOSS OR WEIGHT  CONTROL
   20  BY  PARTICIPANTS  WILL  BE  CONSIDERED MISLEADING IF THE PERSON, FIRM OR
   21  CORPORATION DOES NOT POSSESS OR RELY UPON A  REASONABLE  BASIS  FOR  THE
   22  REPRESENTATION  AT  THE TIME IT IS DISSEMINATED. IF A CLAIM IS MADE THAT
   23  SCIENTIFIC EVIDENCE SUPPORTS THE REPRESENTATION,  THE  PERSON,  FIRM  OR
   24  CORPORATION  MUST  POSSESS  COMPETENT  AND  RELIABLE SCIENTIFIC EVIDENCE
   25  SUBSTANTIATING SUCH CLAIM. FOR THE PURPOSES OF THIS SUBDIVISION, "COMPE-
   26  TENT AND RELIABLE SCIENTIFIC EVIDENCE" SHALL MEAN THOSE TESTS, ANALYSES,
   27  RESEARCH, STUDIES OR OTHER EVIDENCE BASED ON THE  EXPERTISE  OF  PROFES-
   28  SIONALS  IN THE RELEVANT AREA, THAT HAVE BEEN CONDUCTED AND EVALUATED IN
   29  AN OBJECTIVE MANNER BY PERSONS QUALIFIED  TO  DO  SO,  USING  PROCEDURES
   30  GENERALLY  ACCEPTED  IN  THE  PROFESSION  TO YIELD ACCURATE AND RELIABLE
   31  RESULTS;
   32    3. THE  EDUCATIONAL  AND  PROFESSIONAL  EXPERIENCE  OF  THE  PERSONNEL
   33  PROVIDING WEIGHT LOSS SERVICES OR WEIGHT LOSS PRODUCTS;
   34    4. THE TOTAL CHARGES FOR ANY WEIGHT LOSS SERVICES AND PRODUCTS; OR
   35    5.  THE  ACTUAL  OR  ESTIMATED  DURATION OF THE USE OF THE WEIGHT LOSS
   36  SERVICES OR PRODUCTS OFFERED.
   37    COMPLIANCE WITH THE RULES, REGULATIONS, BINDING DECISIONS  AND  ORDERS
   38  OF,  AND  THE  STATUTES ADMINISTERED BY, THE FEDERAL TRADE COMMISSION OR
   39  ANY OFFICIAL DEPARTMENT, DIVISION, COMMISSION OR AGENCY  OF  THE  UNITED
   40  STATES  AS  SUCH RULES, REGULATIONS, BINDING DECISIONS, ORDERS, OR STAT-
   41  UTES ARE INTERPRETED BY THE FEDERAL TRADE COMMISSION OR SUCH DEPARTMENT,
   42  DIVISION, COMMISSION OR AGENCY OR THE FEDERAL COURTS, AND APPLY  TO  THE
   43  SALE OR ADVERTISING OF WEIGHT LOSS SERVICES OR PRODUCTS, SHALL BE DEEMED
   44  COMPLIANCE WITH THE PROVISIONS OF THIS SECTION.
   45    S  644.  LOCAL REGULATION.   ANY LOCAL LAWS OR RULES REGULATING WEIGHT
   46  LOSS SERVICES AND PRODUCTS IN A CITY HAVING A POPULATION OF ONE  MILLION
   47  OR  MORE  AND  WHICH  WERE IN EFFECT PRIOR TO THE EFFECTIVE DATE OF THIS
   48  ARTICLE AND ANY NOTICE PROVIDED PURSUANT TO SUCH LAW OR RULE,  SHALL  BE
   49  DEEMED TO BE CONSISTENT WITH THE PROVISIONS OF THIS ARTICLE.
   50    S  645. PENALTIES. EACH DAY A PERSON, FIRM OR CORPORATION VIOLATES ANY
   51  PROVISION OF THIS ARTICLE SHALL CONSTITUTE A SINGLE VIOLATION.  WHENEVER
   52  THERE  SHALL  BE A VIOLATION OF THIS ARTICLE, AN APPLICATION MAY BE MADE
   53  BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF THE  STATE  OF  NEW
   54  YORK  TO  A COURT OR JUSTICE HAVING JURISDICTION BY A SPECIAL PROCEEDING
   55  TO ISSUE AN INJUNCTION, AND UPON NOTICE TO THE  DEFENDANT  OF  NOT  LESS
   56  THAN  FIVE  DAYS,  TO  ENJOIN  AND  RESTRAIN  THE  CONTINUANCE  OF  SUCH
       S. 3915                             4
    1  VIOLATIONS. IF IT SHALL APPEAR TO THE COURT OR JUSTICE THAT THE  DEFEND-
    2  ANT  HAS  IN FACT, VIOLATED THIS ARTICLE, AN INJUNCTION MAY BE ISSUED BY
    3  SUCH COURT OR JUSTICE, ENJOINING AND RESTRAINING ANY FURTHER  VIOLATION,
    4  WITHOUT  REQUIRING  PROOF  THAT  ANY PERSON HAS, IN FACT BEEN INJURED OR
    5  DAMAGED THEREBY. WHENEVER THE COURT SHALL DETERMINE THAT A VIOLATION  OF
    6  THIS  ARTICLE  HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF NOT
    7  MORE THAN ONE HUNDRED DOLLARS FOR THE FIRST VIOLATION  AND  TWO  HUNDRED
    8  DOLLARS  FOR  EACH VIOLATION THEREAFTER, BUT IN NO EVENT SHALL THE TOTAL
    9  PENALTY THEREFOR EXCEED ONE THOUSAND DOLLARS.  IN  CONNECTION  WITH  ANY
   10  SUCH  APPLICATION,  THE ATTORNEY GENERAL IS AUTHORIZED TO TAKE PROOF AND
   11  MAKE A DETERMINATION OF THE RELEVANT FACTS AND  TO  ISSUE  SUBPOENAS  IN
   12  ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
   13    S 2. This act shall take effect on the one hundred eightieth day after
   14  it shall have become a law.
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