Provides that a false representation of affiliation or approval, or false implication of such affiliation or approval, of any official, state or local agencies or other official source, shall be false advertising.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4575
SPONSOR: Fall TITLE OF BILL:
An act to amend the general business law, in relation to false represen-
tation of affiliation or approval of state or local agencies
PURPOSE OR GENERAL IDEA OF BILL:
To clarify that the prohibition on false or misleading advertising in
New York State's General Business Law includes a false impression of
government correspondence
SUMMARY OF PROVISIONS:
Section one of this bill amends Section 350-a of the General Business
Law to provide that false impressions of official government correspond-
ence shall be considered false advertising and prohibited under Article
22-a of GBL, which declares deceptive acts and practices unlawful.
Section two of this bill sets the effective date.
JUSTIFICATION:
New York's landmark consumer protection law; Article 22-A of the General
Business Law, renders deceptive "acts or practices in the conduct of any
business, trade or commerce or in the furnishing of any service" unlaw-
ful. Any person or firm in violation of this statute is subject to a
state right of action from the Attorney General, a private right of
action from injured parties, and civil penalties.
The law makes specific mention of certain nefarious practices and
tactics such as pension poaching for Veterans Affairs benefits and
deceitful marketing by energy service companies (ESCOs). It also
provides an additional civil penalty of up to $10,000 for persons or
firms who willfully target seniors, in recognition of the vulnerable
nature of this subset of consumers.
Missing from this statute, however, is an express prohibition on commer-
cial correspondence which purports to be affiliated with a government
entity. Examples of for-profit companies disguising sales pitches as
official and urgent government correspondence, from notices that a prop-
erty tax bill may be about to increase to declarations that a consumer
has been found eligible for Medicaid, abound. These predatory mailers
will frequently target senior citizens, who may have trouble reading the
fine print on the back of the envelope which clarifies that the mail is
not affiliated with a government agency at all. While federal rules
issued by the Federal Trade Commission ban false or misleading represen-
tations of governmental authority for debt collectors, there is no such
blanket prohibition for other industries.
This bill would amend New York's General Business Law to clarify that
mail which willfully creates a false impression of official correspond-
ence is considered false advertising and subject to all penalties there-
in described.
It is the sponsor's hope that this change if enacted would better
protect seniors from predatory advertising while encouraging companies
to be clearer and more forthright about the products or services they
are selling.
PRIOR LEGISLATIVE HISTORY:
02/03/23 referred to consumer affairs and protection
01/03/24 referred to consumer affairs and protection
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law.
STATE OF NEW YORK
________________________________________________________________________
4575
2025-2026 Regular Sessions
IN ASSEMBLY
February 4, 2025
___________
Introduced by M. of A. FALL -- read once and referred to the Committee
on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to false represen-
tation of affiliation or approval of state or local agencies
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 350-a of the general business law, as amended by
2 chapter 615 of the laws of 1988, subdivision 3 as added by chapter 107
3 of the laws of 1994, is amended to read as follows:
4 § 350-a. False advertising. 1. The term "false advertising" means
5 advertising, including labeling, of a commodity, or of the kind, charac-
6 ter, terms or conditions of any employment opportunity if such advertis-
7 ing is misleading in a material respect. In determining whether any
8 advertising is misleading, there shall be taken into account (among
9 other things) not only representations made by statement, word, design,
10 device, sound or any combination thereof, but also the extent to which
11 the advertising fails to reveal facts material in the light of such
12 representations with respect to the commodity or employment to which the
13 advertising relates under the conditions prescribed in said advertise-
14 ment, or under such conditions as are customary or usual. For purposes
15 of this article, with respect to the advertising of an employment oppor-
16 tunity, it shall be deemed "misleading in a material respect" to either
17 fail to reveal whether the employment available or being offered
18 requires or is conditioned upon the purchasing or leasing of supplies,
19 material, equipment or other property or whether such employment is on a
20 commission rather than a fixed salary basis and, if so, whether the
21 salaries advertised are only obtainable if sufficient commissions are
22 earned.
23 2. Any written or electronic communication which simulates a document
24 authorized, issued or approved by any court, official, agency of this
25 state or a political subdivision thereof, or of another state or offi-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02244-01-5
A. 4575 2
1 cial governmental entity, foreign or domestic, or which creates a false
2 impression as to such document's source, authorization or approval,
3 shall be considered false advertising unless the person, firm, corpo-
4 ration or association, or agent or employee thereof, has received
5 express permission from such court, official, or agency for the use of
6 such document. This subdivision shall be construed to prohibit any false
7 representation or implication, written or verbal, that a person, firm,
8 corporation or association, or agent or employee thereof, selling a
9 commodity or service is vouched for, approved of, bonded by, operating
10 with or on behalf of, or otherwise affiliated with this state or a poli-
11 tical subdivision thereof, or of another state or official governmental
12 entity, foreign or domestic, unless such person, firm, corporation or
13 association, or agent or employee thereof, has received express permis-
14 sion from such state or political subdivision for such affiliation.
15 3. An employer shall not be liable under this section as a result of a
16 failure to disclose all material facts relating to terms and conditions
17 of employment if the aggrieved person has not suffered actual pecuniary
18 damage as a result of the misleading advertising of an employment oppor-
19 tunity or if the employer has, prior to the aggrieved person suffering
20 any pecuniary damage, disclosed in writing to that person a full and
21 accurate description of the kind, character, terms and conditions of the
22 employment opportunity.
23 [3.] 4. It shall constitute false advertising to display or announce,
24 in print or broadcast advertising, the price of an item after deduction
25 of a rebate unless the actual selling price is displayed or announced,
26 and clear and conspicuous notice is given in the advertisement that a
27 mail-in rebate is required to achieve the lower net price.
28 § 2. This act shall take effect on the sixtieth day after it shall
29 have become a law. Effective immediately, the addition, amendment and/or
30 repeal of any rule or regulation necessary for the implementation of
31 this act on its effective date are authorized to be made and completed
32 on or before such effective date.
