NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A441
SPONSOR: Carroll R TITLE OF BILL:
An act to amend the general business law, in relation to increasing the
notice of cancellation requirements for automobile broker businesses
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to effectuate an amendment to Chapter 610 of
the laws of 2024 (approval memo 52) related to notice of cancellation
requirements and providing additional disclosures to consumers purchas-
ing or leasing automobiles with the assistance of an auto broker.
SUMMARY OF PROVISIONS:
Section one:
*makes changes to clarify the content of the Notice of Cancellation in
the contract between the automobile broker and the consumer
*adds a requirement that an automobile broker clearly and conspicuously
state in any advertisement that they are not affiliated with any dealer
or motor vehicle franchisor, manufacturer, or distributor.
Section two is the effective date.
JUSTIFICATION:
This chapter makes technical amendments to clarify Chapter 610 of the
laws of 2024.
PRIOR LEGISLATIVE HISTORY:
This bill is a chapter amendment to Chapter 610 of the laws of 2024.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as a
chapter of the laws of 2024 amending general business law and vehicle
and traffic law relating to cancellation requirements for automobile
broker businesses, as proposed in legislative bills numbers S.7553-A and
A.3499-B takes effect.
STATE OF NEW YORK
________________________________________________________________________
441
2025-2026 Regular Sessions
IN ASSEMBLY(Prefiled)
January 8, 2025
___________
Introduced by M. of A. R. CARROLL -- read once and referred to the
Committee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to increasing the
notice of cancellation requirements for automobile broker businesses
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2 of section 738 of the general business law,
2 as added by chapter 616 of the laws of 1988, the opening paragraph as
3 amended by a chapter of the laws of 2024 amending the general business
4 law and the vehicle and traffic law relating to automobile broker busi-
5 nesses, as proposed in legislative bills numbers S. 7553-A and A.
6 3499-B, is amended to read as follows:
7 2. The contract shall be accompanied by a completed form in duplicate,
8 captioned "Notice of Cancellation" which shall be attached to the
9 contract and easily detachable, and which shall contain in at least
10 twelve point type the following:
11 "Notice of Cancellation"
12 "You may cancel this contract, without any penalty or obligation,
13 within three days from the date that a copy of an executed contract is
14 received by you or until the automobile described in Section ( ) of this
15 contract has been delivered to you, whichever is sooner, provided that
16 if the automobile is not delivered to you in accordance with this
17 contract within thirty days of the estimated delivery date, you may
18 cancel this contract and receive a full refund, unless the delay in
19 delivery is attributable to you. Additionally, you may cancel this
20 contract, without any penalty or obligation, for other grounds under New
21 York State law, including but not limited to the rights enumerated in
22 Section 738 of the New York State General Business Law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02685-01-5
A. 441 2
1 To cancel this contract, mail or deliver a signed and dated copy
2 of this cancellation notice, or any other written notice, to
3 (__________________________________) at (________________________)
4 name of automobile broker business address
5 [not later than midnight of the third day following your receipt of a
6 signed contract] within the applicable timeframe.
7 I hereby cancel this transaction."
8 _________________________________
9 (signature of consumer)
10 _________________________
11 (date)
12 § 2. Paragraph (e) of subdivision 1 of section 741-a of the general
13 business law, as amended by a chapter of the laws of 2024 amending the
14 general business law and the vehicle and traffic law relating to automo-
15 bile broker businesses, as proposed in legislative bills numbers S.
16 7553-A and A. 3499-B, is amended to read as follows:
17 (e) That the automobile broker business is not affiliated with any
18 [manufacturer, dealership, or dealership group] dealer, as defined in
19 section four hundred fifteen of the vehicle and traffic law, or any
20 motor vehicle franchisor, manufacturer, or distributor as defined in
21 section four hundred sixty-two of the vehicle and traffic law.
22 § 3. This act shall take effect on the same date and in the same
23 manner as a chapter of the laws of 2024 amending the general business
24 law and the vehicle and traffic law relating to automobile broker busi-
25 nesses, as proposed in legislative bills numbers S. 7553-A and A.
26 3499-B, takes effect.
