INTRODUCTION

Enacted by the City Council in 1969, the Consumer Protection Law forbids all "deceptive or unconscionable trade practices in the sale, lease, rental, or loan, or in the offering for sale, lease, rental, or loan of any consumer goods and services, or in the collection of consumer debts." Under the Consumer Protection Law (commonly referred to as CPL), the Department of Consumer Affairs has authority to adopt rules prohibiting practices it defines as deceptive or unconscionable.

A brief synopsis of the current rules of the Consumer Protection Law follows, but it is by no means complete. For a more comprehensive look at all of the rules, refer to the Official Compilation of the Rules of the City of New York Title 6, Chapter 5. The law itself can be read online in the New York City Administrative Code, Title 20, Chapter 5, Subchapter 1. Click here to access the Laws of the City of New York.

RULE 5-06. THE WORD "FREE," AND SIMILAR REPRESENTATION
Any limitations or conditions imposed on a "free" offer must be disclosed in advertising (but not on packages). A description of the condition must be near the word "free" (an asterisk plus footnote are not good enough), and in type at least half as large as the word "free." A seller may not make a free offer in connection with the sale of an item that is usually sold at a price negotiated with consumers. Where a seller offers a free item with the purchase of another item, the item to be purchased may not be priced higher than its regular selling price.

5-07. NUMBER SIZE OF ADVERTISED PRICES
The cents figure must be at least one-half the height and one-half the width of the dollar figure in advertising, except when the price is a whole dollar amount, then the "zero cents" figure can be any size.

5-08. SALES PROMOTIONS
If a prize is offered to a prospective customer on the condition that the customer submit to a sales promotion, then the customer must be informed of this in writing at the time s/he is notified of the prize. This written disclosure must contain: a full description of the exact prize, including its cash value as well as the price of the least and most expensive item or parcel; a statement of all the terms and conditions attached to the prize; and a statement that the customer must submit to a sales promotion.

5-09. LIMITATIONS ON OFFER
Limitations, conditions, exclusions, modifications, etc. of advertised offers must be disclosed clearly and conspicuously in print advertising and announced in television and radio advertisements.

5-10. DECEPTIVE CLASSIFIED ADS
In classified advertising, all business entities must clearly identify themselves as a business. Use of terms such as "broker" or "dealer" will satisfy this requirement.

5-11. LIMITED EDITIONS
Items may not be called "limited" unless there is a predetermined maximum quantity available or a reasonably short time period for ordering. All ads must clearly and conspicuously state the number of copies produced or the length of time the product will be offered for sale.

5-94. RANGE ADVERTISING
In any advertisement for two or more similar items or services, when a range of prices is stated, or the existence of a range is implied, the highest price as well as the lowest price must be stated in figures equally as tall and broad. Examples of violations: "Watches from $9.95;" "Dresses $3.00 and Up."

5-13. ADVERTISEMENTS CLAIMING TO BOOST THE IMMUNE SYSTEM
A claim that a product or treatment will boost, enhance, stimulate, assist, cure, strengthen, or improve the body's immune system is a deceptive trade practice unless the claimed effects of a product or treatment can be appropriately substantiated with scientific documentation.

5-21. CONSUMER CREDIT AND COMPLIANCE WITH THE LAW
Any person or business extending consumer credit must comply with all applicable federal, state, and local laws, including the Fair Debt Collection Practices Act; Fair Reporting Act; Equal Credit Opportunity Act; and NYC Consumer Protection Law Rule #5-77.

5-23. LAYAWAY PLANS
A "layaway plan" is an installment payment plan which requires at least four payments for an item purchased for more than $50. A merchant must disclose in writing the terms of the layaway plan, including the following: full description and total cost of the item; tax; additional charges, if any, for delivery, layaway plan use, and cancellation; duration of the plan, payment schedule, any late charges or penalties for missed payments; the store's refund policy; and where and when merchandise will be held for the consumer, including whether it has been removed from the inventory.

5-24. CREDIT CARD LIMITATIONS
Merchants who accept payment by credit card must also disclose any limitations on the use of the card. Disclosure must be conspicuous at the entrance to the store and in any ads which indicate credit card acceptance.

5-31. FUTURE SERVICE CONTRACTS
Consumers who wish to cancel contracts for services to be rendered on a continuing basis in the future, such as dancing lessons, may not be charged more than 5% of the cash price up to $50, plus the equivalent value of the service already used by the consumer. Further, a cancellation provision must be included in the contract. Refunds must be available within 10 days of cancellation.

5-32. DOCUMENTATION OF TRANSACTIONS
On purchases of $20 or more, consumers must be offered a receipt showing the total amount of money paid, including a separate statement of tax, the date, and the actual business name and address of the merchant. For purchases between $5 and $20, the receipt must be given if requested by the consumer. Receipts must be itemized. Register tapes are not acceptable unless they comply with this regulation. Receipts must also include the make and model number of the equipment. Upon request, the vendor must provide consumer with a copy of any document which s/he signed relating to a sale e.g. contract, loan agreement, etc.
EXEMPT: Food or drink for consumption on the premises; oil or gasoline from a gas station pump.
NOTE: State Tax Law requires that sales tax be listed separately.

5-33. TRANSACTION NEGOTIATED IN SPANISH
When essential parts of a consumer agreement are negotiated in Spanish, the consumer must be given a written Spanish translation of any documents related to the agreement. This does not apply to any document that the consumer will receive at a later date.
NOTE: This applies to the purchase of consumer goods or services that will be paid in installments.

5-34. CONTRACT CANCELLATIONS
A contract for consumer services or goods may not be described as "non-cancelable" or "not subject to cancellation." Such terms may be used with a statement of a fee or penalty for cancellation, for example: "This contract is not cancelable unless you pay a cancellation fee of $5."

5-35. DISCLOSURE OF MANUFACTURERS' SUGGESTED PRICES
Merchants who offer new merchandise for sale for any amount greater than the manufacturer's suggested list price ("MSRP") or catalog price must clearly and conspicuously disclose the selling price and the MSRP on the price tag or label and identify the MSRP as such.

5-36. SALE OF USED ITEMS
A seller of used merchandise must clearly disclose that the items are not new by using words such as "used," "antique," "floor model," "demonstrator," or "rebuilt," in any advertisement or sales transaction.

5-37. DISCLOSURE OF REFUND POLICY
Merchants who do not give cash refunds for non-defective, unused merchandise must conspicuously post a sign at the cash register, at the store entrance, or at the point where the goods are displayed, disclosing their refund policy, credit or exchange policy, and the conditions under which it applies. If there is no sign, consumer has 20 days to get a refund.
EXEMPT: Food, perishables, custom-made or custom-finished goods, and items sold "as is."

5-38. GOODS TEMPORARILY IN SHORT SUPPLY
When the Commissioner declares that any item is temporarily in short supply because of "extraordinary circumstances" (e.g. due to a snow storm, fuel shortage, etc.), a merchant may not increase prices beyond a level needed to reflect normal market fluctuations apart from the shortage. The only exception is when the seller incurs additional cost through no fault of his/her own by providing the item or attempting to provide additional opportunities to purchase the item. Any conditions or limitations on the sale of this item must be conspicuously posted on a sign.

5-39. CANCELLATION OF HOME APPOINTMENTS
An appointment for delivery, pick-up, inspection, or repair of goods at a consumer's home must be kept unless the consumer is notified by the end of the preceding business day or as soon as practicably possible. Verbal notice must generally be followed by written notice. Records of cancellations and delay must be kept by the business for one year. Employee illness or mechanical breakdown do not excuse failure to notify, but natural disasters or strikes do.

5-40. LIABILITY FOR NEGLIGENCE
Language disclaiming responsibility for negligence on contracts, claim checks, and receipts, are invalid when used by the following businesses: caterers, contractors, architects, engineers, surveyors, garage or parking lot operators, landlords, and pool, gymnasium, or public amusement operators.

5-46. CAR RENTAL
Car rental agencies must honor all reservations within one half-hour after the reserved time at the reserved price, unless the consumer has been told that the reservation is not guaranteed. If the reserved vehicle is unavailable, the consumer must be given a car that seats as many passengers and is suitable for consumer's purposes.
NOTE: A sign must be posted informing consumers of their rights under this rule.

5-47. JEWELRY SELLERS AND APPRAISERS
Every written appraisal must state the standard of monetary value used (e.g., retail replacement). Persons engaged in the sale or appraisal of jewelry may not misrepresent the nature of an article of jewelry and must disclose that jewelry appraisals may vary as much as 25%. For sales of more than $75, very detailed sales slips must be given.
NOTE: "Jewelry" means unset rare gems, precious and semi-precious stones, and articles for personal wear containing such gems and stones. It does not include gold, silver, platinum, or other precious metals.

5-48. MAIL ORDERS
Mail-order firms located in New York City must send merchandise within 30 days of the time ordered, or else they must inform the customer of the anticipated date of delivery; or offer the option of a refund or substitute merchandise of equivalent or superior quality. (If the ad says to allow more than 30 days for delivery, the time limit is extended to the date in the ad.) Firms advertising must give their legal name and address, in addition to the post office box.

5-49. DOOR TO DOOR SALES
Starting with the initial contact (including telephone contact), door-to-door salesmen must state that the purpose of their visit is to try to make a sale, and they must give a general description of the goods.

5-50. DELIVERY OF FURNITURE AND MINOR APPLIANCES
In the sale of furniture; major appliances, including audio visual equipment; carpets; and rugs, the seller must give the buyer a delivery date at the time the contract or sales slip is signed or written up. If the furniture is not delivered by the delivery date, the buyer has the following options: cancel with full refund; get a new delivery date; receive a credit; or select different furniture. Refunds must be paid within two weeks and consumers have the same rights on the new delivery date as with the old date.
EXEMPT: This rule does not apply to "custom made" furniture; appliances costing $200 or less; or if failure to deliver is caused entirely by the consumer.
NOTE: A range of delivery dates may also be given. If this is the case, the provisions of this rule apply to the latest estimated delivery date.

5-51. RETAIL SALE OF GASOLINE
Gasoline dealers may not provide preferential treatment for certain customers, require purchases of other goods as a precondition for gas purchase, or deny having a commodity when it is actually available.

5-53. "SPECIALS" IN FOOD STORES
Food stores advertising "specials" must have an adequate supply of the advertised items which must be readily available at the advertised price. Limitations regarding stores, products, or prices must be clearly disclosed.
NOTE: Rain checks are not mandatory, nor will they automatically absolve the store from liability for a violation.

5-54. REPAIR OF CONSUMER GOODS
Repair persons must provide written estimates; get written authorization to begin work (this requirement may be waived if consumer is in a hurry); offer to return replaced parts to the consumer; and charge a total price no more than 20% above the original written estimate. Both estimate and final bill must be broken down by parts and labor and any other charges. The exact name and business address must be given if repairs are to be made outside the home. The estimate must give a promised completion date. If complete repairs are delayed for an "unreasonable" period of time, the consumer has the right to an immediate return of the property. If it is impossible for an estimate to be made until the repairer has examined the item, the estimate may be postponed. In that case a receipt must be drawn up, which includes any charges for the estimate, pick-up, and delivery of the item, and any other charges that the consumer must pay even if s/he does not authorize the repair.
EXEMPT: "Service contract" repairs, (contract of at least one year); warranty repairs; and repairs estimated at $15 or less. Under no circumstance, however, may the cost exceed 20% of the estimate.

5-55. MEAT AND POULTRY ADVERTISING
Private meat grading such as "A-1," Top Grade," or "US Finest" may not be used in advertising unless the ad also includes in the same-size print the official USDA grade or a statement saying the meat has not been graded.
NOTE: Since not all meat is graded by the USDA (United States Department of Agriculture), this regulation does not apply if there is no USDA retail grading service for the meat.

5-56. WINDOW GATES
A window gate or bar that has not been approved by the NYC Board of Standard & Appeals for use on fire-escape windows cannot be sold unless the seller places a tag or warning on it stating that its use is illegal and unsafe on fire escape windows.
NOTE: Do not confuse this rule with a landlord's obligation to provide window guards enforced by the Health Department.

5-57. UTILITY BILL PAYMENTS
Any business which accepts payment for utility bills without authorization from the specific utility company must forward payment to the utility company within 24 hours of receipt. The business must give the consumer a signed receipt indicating the date and the amount paid, the name and address of the person accepting payment and the name and address of the person or entity for whom payment was accepted (if different). The consumer's bill must be stamped with the date it was accepted.

5-58. FOOD IN DAMAGED CONTAINERS
Food may not be sold in leaking, rusted, bloated, or excessively dented cans, punctured packages, or vacuum-sealed containers where the vacuum has been unsealed.

5-59. RESTAURANT SURCHARGES
Restaurants are prohibited from adding a surcharge to the cost of items listed on the menu, i.e., if they want to raise prices, they must change the individual prices on the menu, not just add a surcharge. However, bona-fide service charges for persons sharing one meal, a personal minimum amount, a required surcharge for groups of eight or more, are legal if they are printed on the menu, and take-out businesses are exempt.

5-60. FRANCHISES
Each franchisee must disclose that the franchiser and franchisee are separate businesses, and must provide the true legal name of both by posting a sign and writing the information on each sales contract of $50 or more. Credit-card receipts are exempt from this procedure if a sign is posted near the register. Ads and promotions must state whether they are available at all outlets. If a warranty is not transferable to other outlets, this must be disclosed.

5-61. PUBLIC PERFORMANCE SEATS
The seller of seats for performances of public amusement or sport must conspicuously post a diagram or a sign stating a diagram is available and easily readable. Obstructed-view seats may not be sold unless the fact is disclosed on the ticket. In selling tickets over the telephone, the number of seating levels in the theater, as well as the seating level on which the tickets offered are located, must be disclosed.

5-62. HOME HEATING OIL CREDIT
Home heating oil dealers may not impose credit terms more stringent than those in effect during the 1978 -1979 heating season, unless the dealer can show their supplier or creditor has imposed similar restrictions.

5-63. CATERING CONTRACTS
If a consumer cancels a catering contract less than six months prior to the reserved date, and if the caterer can rebook, the cancellation fee is limited to 5% of the contract price or $100.00, whichever is less, plus "expenses reasonably incurred" (e.g. printing napkins). If the caterer cannot rebook, the fee is limited to the contract price minus the caterer's projected costs in addition to "expenses reasonably incurred." If the cancellation occurs more than six months in advance of the date, the presumption is that the caterer can rebook. Contract forms must conspicuously disclose the cancellation fee. A refund must be mailed within 30 days after re-booking. A caterer may not delegate performance of a contract to another caterer without the consumer's consent.

5-64 VOCATIONAL TRAINING ADVERTISING
Vocational training schools may not falsely represent the salary that will be earned or that people in a field earn. They must disclose any other conditions or requirements (e.g. union membership). If a placement service is advertised, any conditions for qualification must also be clear. Also, government approval of the vocational training may not be misrepresented.

5-65. OUT-OF-CONTEXT QUOTES
Quotations from critics' reviews of movies, plays, or books may not be taken out of context in advertising (including on the marquee).

5-66. TAX PREPARATION
Tax preparers must sign every return disclosing their true business names; provide a copy of each return to the consumer; give an itemized bill; return all personal papers to the consumer; and provide representation at any audit if that service has been promised. They may not disclose any details of the return to any unauthorized person, nor may they alter any entries after the taxpayer has signed. Tax preparers may not claim to give taxpayers a Refund Anticipation Loan, an "instant tax refund" that is actually an interest bearing loan, unless that fact is clearly disclosed. Any advertisement for a Refund Anticipation Loan must state conspicuously that the lender will charge a fee or interest, and it must identify the lender. Tax preparers must make available the Consumer Bill of Rights Regarding Tax Preparers. Attorneys, public accountants and their employees, trustees, employees of a business who prepare returns relating to that business, and government employees who do this as part of their job, are exempt from that rule.

5-67. ITEM PRICING IN FOOD STORES
Most food items offered for sale must have the prices individually marked. This applies to stores, or chains, doing at least $2 million of business yearly. Exemptions include frozen foods and sales items that appear in special displays

5-68. DEALERS AT FLEA MARKETS
A dealer at a flea market must provide consumers with itemized, serialized receipts listing the date, total amount of money spent , the tax paid, and the true name and address of the seller. The dealer must keep copies of all receipts for 3 years.

5-69. BLOOD-PRESSURE READING SERVICES
In addition to possessing a "General Vendor" license, blood-pressure reading services which charge a fee or accept donations while operating in a public space or within a retail establishment must conspicuously post a sign (at least 12" high x 18" wide, with letters 1" high x ¼" wide), containing the following language:

Blood pressure readings vary, depending upon the skill and experience of the operator, the conditions under which the reading is obtained, any medication taken by the individual, and other factors such as age, weight and physical condition.

I am not a licensed or certifies health professional trained to take blood-pressure readings. If you have any questions about your blood pressure, see your doctor.

5-77 DEBT COLLECTION PRACTICES
This law supplements the Federal Fair Debt Collection Practices Act. It is applicable to "in-house" collectors, in addition to collection agencies and individuals collecting consumer debts for others.

Debt collectors:

• may not contact a third party (e.g. employer, friend, relative) more than once when trying to locate the consumer. The collector is not allowed to indicate that the person s/he is looking for owes money.
• may contact third parties only for location purposes, unless the consumer has given permission to the debt collector after institution of debt collection procedures.
• may not call the consumer between 9 P.M. and 8 A.M.; nor may the collector call with "excessive frequency" (more than twice a week). The collector is not allowed to call a consumer at work if the collector has reason to believe the consumer's employer would disapprove.
• may not harass or abuse consumers. EXAMPLES: Threats of violence; obscene or profane language; advertisement of a debt; and anonymous calls.
• must send the consumer written notice indicating amount of debt; to whom it is owed; and when it is due. The statement must also inform the consumer of the right to dispute validity of the debt.
• must respond with an explanation if the consumer disputes the debt in writing. All collection proceedings must stop until this is done.
• may not misrepresent their credentials. They may not send documents that simulate government papers or legal forms. They may not threaten action which cannot be legally taken, i.e., "You will be arrested if you don't pay," or which they do not intend to take.
• The consumer has the right to tell a collector to stop contacting him/her and then the collector will only be able to send one further communication indicating what action will be taken, e.g. "Final notice. If you refuse to pay, we will sue."
  

NOTE: Any agency which attempts to collect consumer debts in NYC must be licensed by the NYC Department of Consumer Affairs.

5-86 et seq. "SALES," "DISCOUNTS," AND SIMILAR "SALES"
The use of the words "sale," "discount," "reduced," and other similar phrases or expressions in any advertisement is regulated and defined. Generally, the requirement is that the savings must be meaningful. Discounts must be off bona fide prices, and quantities must be sufficient to supply reasonable demand. If there is a limited supply or availability is limited or restricted in any manner, then the limitation or restriction must be disclosed. Some terms such as "off our first price" and "below manufacturer's cost" are prohibited. The regulations governing these terms and their uses are complex and lengthy. Retailers are urged to send the advertisement to the Department of Consumer Affairs for review and to obtain a copy of RCNYS86 and the agency's pamphlet, Advertising Guidelines for Retailers.