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Bill

S 9365

Requires advertisements of a discounted price of a good or service have such price be actually discounted from a bona fide regular price

2025 Regular Session Introduced by Brian Kavanagh and 2 co-sponsors

The bill bans false “discounted” claims by requiring discounts be from a bona fide regular price and the discount amount be calculated from that price.

ADVANCED TO THIRD READING
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WeVote Research Nonpartisan
Bill Summary · S 9365

Overview

Bill S 9365 would amend New York’s general business law to tighten rules on how discounted prices are advertised. Its core aim is to prevent false or misleading “discounted price” claims by ensuring that advertised discounts are genuinely tied to a bona fide regular price. The bill includes definitions, prohibitions on certain representations, and a short regulatory carve-out for certain sale types (e.g., clearance or liquidation).

Main purpose and intent

  • To ensure that advertised discounted prices reflect a real reduction from a bona fide regular price.
  • To reduce consumer deception in both print and broadcast advertising regarding discounts.
  • To provide clear standards for when a price can be described as discounted and how the amount of the discount must be calculated.

Key provisions and changes

  • Addition to law: A new subdivision 5 to Section 350-a of the general business law.
  • Definitions:
    • Discounted price: Any price offered to consumers on a temporary or conditional basis that is a reduction from a prior price.
    • Bona fide regular price: An actual price at which the good or service was openly offered and available for a reasonably substantial period.
  • Prohibitions (false advertising standards):
    • It is false advertising to advertise a price as discounted unless it is a reduction from the bona fide regular price.
    • It is false advertising to display or announce the amount of the discount (dollar or percentage) unless that amount is calculated based on the bona fide regular price.
    • It is false advertising to present the pre-discount price unless that price was the bona fide regular price.
  • Exceptions:
    • The prohibition does not apply to prices advertised as part of a clearance sale, liquidation sale, discontinued product sale, or similar terms or designations.

Who/what would be affected

  • Advertisers and marketers using print or broadcast media in New York state.
  • Retailers and businesses that advertise discounted prices for goods or services.
  • Consumers seeking protection against misleading discount claims.

Procedural and timeline aspects

  • Effective date: The act would take effect 30 days after becoming law.
  • Enactment path: Introduced in the Senate (S 9365) and referred to the Committee on Consumer Protection; subsequently advanced through readings with standard legislative timelines (advancement noted through the 2026 session actions).
  • Sponsorship: Co-sponsored by Sen. Rachel May, Sen. Brian Kavanagh, and Sen. Sam Sutton.

Practical impact and considerations

  • Clarity for advertisers: The bill creates a straightforward benchmark—discounts must be tied to a bona fide regular price, and discount amounts must be calculated from that price.
  • Enforcement: Establishes a framework for identifying false advertising related to discounted pricing, potentially enabling enforcement by state regulators under the consumer protection law.
  • Market impact: Retailers may adjust pricing displays to ensure that any stated discounts reflect genuine prior prices, potentially reducing perceived savings from temporary promotions unless supported by bona fide regular prices.

Compiled from official sources — confirm details with the bill’s official record.

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