Contracts and General Business Practices

RCNY tit. 6, ch. 5, subch. A, pt. 4

in effect

6 RCNY § 5-31 Future Services Contracts.

§ 5-31 Future Services Contracts. (a) Definition. A contract for consumer services that will be provided on a continuing basis is a "contract for future consumer services." However, this section does not apply to: (1) boarding accommodations; (2) travel arrangements made less than a year in advance; (3) the sale of goods which include warranties of service and repair; (4) services by non-profit educational institutions. (b) Liability for cancellation. A consumer who cancels a contract for future services cannot be charged more than the full contract price. However, up to the amount of the full contract price, the consumer may be charged the total of the following amounts: (1) 5 percent of the cash price, or $50, whichever is less; (2) the cost to the seller for any goods the consumer used or the consumer is keeping; (3) the portion of the full contract price representing services received by the consumer (if a consumer cancels a contract for lessons by missing consecutive lessons that represent at least 25 percent of the lessons in the entire course, those missed lessons up to 25 percent can be treated as services received by the consumer). (c) Prompt refunds. If a buyer has paid a seller more money than this section allows a seller to keep, the seller must refund the extra payment, or make a refund available, within ten days of cancellation. (d) Cancellation. Cancellation occurs when: (1) the consumer mails the seller notice of intent to cancel; or (2) the seller actually knows the consumer intends to cancel; or (3) the consumer misses consecutive lessons that represent at least 25 percent of an entire course, and the consumer does not inform the seller in writing that he or she intends to remain enrolled. (e) Notice. The seller's contract form must conspicuously disclose the seller's refund policy, and must contain the following notice in a prominent place: IF YOU CANCEL THIS CONTRACT (THE SELLER) MAY KEEP ONLY 5% OF THE CASH PRICE UP TO A MAXIMUM OF $50, PLUS A PORTION OF THE CONTRACT PRICE BASED UPON THE LESSONS OR SERVICES YOU HAVE USED. YOU MAY NOTIFY (THE SELLER) OF YOUR INTENT TO CANCEL BY MAIL, ADDRESSED TO (THE SELLER) AT (SELLER'S ADDRESS).

6 RCNY § 5-32 Documentation of Transactions.

§ 5-32 Documentation of Transactions. (a) Definitions. Audio equipment. "Audio equipment" means any apparatus or equipment that is used for sound reproduction, including but not limited to amplifiers, phonographs, radios, receivers, speakers, tape players, tape recorders and turntables. Audio equipment does not include prerecorded or blank audio recording tape or records. Photographic equipment. "Photographic equipment" means any apparatus or equipment used for the taking of photographs, including but not limited to cameras, camera cases, lenses and tripods. "Photographic equipment" does not include film, photograph albums or apparatus or equipment used to develop or enlarge photographs. Video equipment. "Video equipment" means televisions and any apparatus or equipment that is used in the process of producing images on a television set, including but not limited to video disk players, video game units and cartridges, video tape players and video tape recorders. "Video equipment" does not include prerecorded video discs and tapes or blank video tapes. (b) Receipts. A seller must: (1) offer a consumer a receipt for any retail purchase if the amount of the purchase is twenty dollars or more; and (2) provide a consumer with a receipt upon request for any retail purchase if the amount of the purchase is between five and twenty dollars. (c) Contents of receipts. The receipt must contain: (1) the amount of money paid for each item; (2) the total amount of money paid including a separate statement of tax; (3) the date of the purchase; (4) the legal name and address of the seller in accordance with Section "Legal Name" (5) where the cost of any item of "audio equipment," "photographic equipment" or "video equipment" exceeds one hundred dollars, any make and model number. (d) Exemptions. This section applies to the retail sale of all consumer goods and services except: (1) food or drink intended for on-premises consumption; or (2) oil, gasoline or parking fees paid for in cash. Sellers of these goods and services must provide consumers with receipts upon request if the amount of a purchase is more than five dollars. (e) Register tapes. A seller of food or drink for off-premises consumption may give the consumer a register tape containing the seller's name, the date, and the individual prices of items bought instead of giving a receipt. (f) Other documents. Upon request, a seller must provide a consumer with a copy of any document related to the sale which was signed by the consumer.

6 RCNY § 5-33 Transactions Negotiated in Spanish.

§ 5-33 Transactions Negotiated in Spanish. (a) Scope. This section applies to the purchase or lease of consumer goods and services by means of an agreement to pay in installments. (b) When essential parts of a consumer agreement are negotiated in Spanish, the consumer must be given a Spanish translation of any documents related to the agreement. This requirement includes: (1) any document which the consumer signs; (2) any document containing the merchant's policy on refunds, cancellations or exchanges; (3) any document containing terms and conditions of the agreement; (4) any guarantees or warranties given by the merchant; (5) any exclusion or modification of express or implied warranties. The consumer need not be given a Spanish translation of any document which the consumer will receive at a later date, such as monthly bills and sales slips for charge account purchases.

6 RCNY § 5-34 Contract Cancellations.

§ 5-34 Contract Cancellations. (a) A contract for consumer goods or services may not be described as non-cancellable, unless the seller has performed all its obligations at the time the consumer signs the contract. (b) A contract that complies with 6 RCNY § 5-34(a) may describe the fee or penalty that will be imposed if the consumer cancels, or may state that the consumer who does not perform his or her obligations under the contract will be responsible to the seller for damages.

6 RCNY § 5-35 Pricing of Items with Manufacturer's Suggested Prices.

§ 5-35 Pricing of Items with Manufacturer's Suggested Prices. (a) Definition. Manufacturer's suggested retail price. "Manufacturer's suggested retail price" means the list price, catalog price or any other retail price recommended by the manufacturer. (b) A seller who sells or offers to sell any new item for more than the manufacturer's suggested retail price must: (1) disclose the selling price; (2) disclose the manufacturer's suggested retail price; and (3) identify the manufacturer's suggested retail price as the price recommended by the manufacturer. (c) The required information must be printed clearly and conspicuously on the item's price tag or label, and in any advertisement that states the item's selling price.

6 RCNY § 5-36 Sale of Used Items.

§ 5-36 Sale of Used Items. (a) A seller of a used item must disclose clearly that the item is used, in any advertisement or sales transaction concerning the used item. (b) Words such as "used," "antique," "demonstrator," "floor model," "rebuilt," "renovated," "restyled," or "remodeled" may be used to indicate that an item is used.

6 RCNY § 5-37 Disclosure of Refund Policy.

§ 5-37 Disclosure of Refund Policy. Sellers of consumer goods and services must comply with all provisions of New York General Business Law § 218-a. This regulation does not limit a consumer's right to receive a refund, credit, exchange, or anything else permitted by law.

6 RCNY § 5-38 Goods Temporarily in Short Supply.

§ 5-38 Goods Temporarily in Short Supply. (a) Scope. This section governs the sale of items which are temporarily in short supply because of extraordinary circumstances. Extraordinary circumstances can include fuel shortages, weather conditions, power failures, and strikes which result in limited deliveries of items to New York City consumers. (b) Declaration of temporary shortage. The Commissioner of the Department of Consumer Affairs shall make declarations about items temporarily in short supply by: (1) filing a declaration as soon as possible with the City Clerk; and (2) publishing the declaration as soon as possible in The City Record; and (3) sending the declaration to the media specified in Section 1043 of the Charter. A declaration of temporary shortage shall expire in 30 days, unless it is terminated sooner by declaration. The Commissioner may issue a renewed declaration of temporary shortage upon expiration of the original declaration. (c) Unconscionable sales practices. A seller of items the Commissioner has declared in short supply may not: (1) increase prices in excess of an amount reflecting normal market fluctuations, except in accordance with the exemption rules in 6 RCNY § 5-38(e); (2) require consumers to purchase another item in order to get the item in short supply, if no additional purchase was required before the shortage; (3) require the purchase of a minimum quantity of the item in short supply; (4) fail to give all consumers an equal opportunity to purchase the item in short supply (to the extent that such opportunity existed before the temporary shortage). A seller may, however, give preference to a category of consumers having a special health- or safety-related need for the item in short supply. (d) Deceptive sales practices prohibited. A seller of items the Commissioner has declared temporarily in short supply: (1) may not represent falsely that an item is not available; (2) must disclose any limitation or condition on sale of an item conspicuously in a sign at the point of sale. (e) Exemption. (1) A seller of items the Commissioner has declared temporarily in short supply may increase prices in excess of an amount reflecting normal market fluctuations if he or she can show that additional costs have been incurred in providing the item, through no fault of the seller or as a result of the seller's attempt to give consumers additional opportunities to purchase the item (for example, by increasing the hours during which an item can be purchased). This exemption only applies to the increased cost incurred by the seller. (2) This exemption does not apply when another law or regulation prohibits a price increase. (3) A seller using this exemption must keep records, for one year, of the increased costs incurred. The records shall be made available upon demand to the Department of Consumer Affairs. (f) Failure to comply with this section within two days of an original declaration will not result in any penalty if the seller proves that he or she did not know of the declaration.

6 RCNY § 5-39 Cancellation of Home Appointments.

§ 5-39 Cancellation of Home Appointments. (a) Cancellation of home appointments. (1) When a seller makes an appointment with a consumer to pick up, deliver, inspect or repair goods at the consumer's home, the seller must keep the appointment or give the consumer written or verbal notice of cancellation. The notice must be received before the end of the business day before the day of the appointment. If it is impossible for the seller to give notice by the end of the day before the appointment day, the seller must give notice as soon as possible. (2) When verbal notice is given, the seller must mail a notice of the cancellation the next day. This need not be done, however, if the seller and consumer reschedule the appointment for a date within three days of the date the seller cancelled. (3) A seller may cancel an appointment without notice only if the cancellation is caused by the consumer, by natural disaster, or by strike. Employee illness and mechanical breakdown do not relieve the seller of the obligation to give notice. (b) Record keeping. A seller who cancels an appointment must prepare, and keep for one year, a record with the following information: (1) seller's name; (2) consumer's name and address; (3) description of the goods; (4) date of appointment which was cancelled; (5) date appointment has been postponed to, if any; (6) date that notice of cancellation was given.

6 RCNY § 5-40 Liability for Negligence.

§ 5-40 Liability for Negligence. A seller may not state that it is not liable for damages caused by negligence, if such a statement is invalid according to a statute, regulation or ordinance. For example: (a) lessors may not disclaim liability for negligent operation or maintenance of leased premises; (b) caterers may not disclaim liability for negligence at catered affairs; (c) contractors may not disclaim liability for negligent construction, maintenance or repair; (d) architects, engineers and surveyors may not disclaim liability for negligence; (e) garagekeepers, parkers, or servicers of motor vehicles may not disclaim liability for negligence; (f) operators of pools, gymnasiums and places of public amusement or recreation may not disclaim liability for negligence.

6 RCNY § 5-41 Unlawful Sales Tax.

§ 5-41 Unlawful Sales Tax. It is a deceptive trade practice for any seller to collect sales tax on the sale of any good or service that is not subject to such tax under Article 28 of the New York State Tax Law or the rules and regulations promulgated thereunder. (Added City Record 7/7/2016, eff. 8/6/2016)

6 RCNY § 5-42 Unlawful Price Gouging.

§ 5-42 Unlawful Price Gouging. (a) Definitions. "Covered goods or services." The term "covered goods or services" means goods or services that are essential to health, safety or welfare, or are marketed or advertised as such, including but not limited to staple consumer food items such as milk, eggs and bread, goods or services used for emergency cleanup, or emergency supplies such as water, flashlights, radios, batteries, candles, blankets, soaps, diapers, toiletries, medical supplies such as medications, bandages, gauze, isopropyl alcohol, medical masks, and antibacterial products, or gasoline or other motor fuels. "Excessive price." The term "excessive price" means 10 percent or more above the price at which the same or similar good or service could have been obtained by a buyer in the City of New York 30 - 60 days prior to the declaration of a state of emergency. "Merchant." The term "merchant" means a seller, lessor, or creditor or any other person who makes available either directly or indirectly, goods, services or credit, to consumers. "Merchant" includes manufacturers, wholesalers and others who are responsible for any act or practice prohibited by this subchapter. (b) (1) It is an unconscionable trade practice for a merchant to sell or offer for sale covered goods or services at an excessive price during a declared state of emergency in the City of New York. (2) Exceptions. A merchant is permitted to sell or offer for sale covered goods or services at an excessive price if such merchant: (i) has increased its price of such goods or services to an excessive price as a direct result of costs imposed on such merchant by the supplier of such goods or services, or such increase in the price of such goods or services is directly attributable to additional costs for labor or materials used to provide the goods or services, provided that the increase charged to the buyer is comparable to the increase incurred by the merchant; or (ii) sold or offered for sale such covered goods or services to buyers in the City of New York at an excessive price 30 days prior to the declaration of a state of emergency and such merchant has not increased the price of such goods or services during the state of emergency, or in the 30 days prior to such declaration, except in accordance with subdivision (i). (3) Each sale or offer for sale in violation of this rule constitutes a separate violation. (Added City Record 3/18/2020, eff. 3/18/2020 and City Record 6/26/2020, eff. 6/26/2020)

Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-151341Fetched: 10/24/2026