N.Y. GBS Law § 396-T — New York Code / Act GBS / Article 26 / Section 396-T
Unlawful practices relating to layaway plans
Status: in_force

§ 396-t. Unlawful practices relating to layaway plans. (a) Definition\nof layaway plan. For purposes of this section, the term "layaway plan"\nshall mean a purchase over the amount of fifty dollars whereby the\nconsumer agrees to pay in four or more installments for the purchase of\nspecific merchandise, delivery of which is to be made upon the payment\nof the full purchase price at a definite future date or at a date to be\nselected by the consumer.\n  (b) It is an unlawful practice for a merchant to accept payment from a\nconsumer to be applied to the purchase of merchandise on a layaway plan\nwithout first disclosing to the consumer in writing the following\ninformation:\n  (1) a description of the merchandise to be purchased on the layaway\nplan including, as appropriate, the type of item, the name of the\nmanufacturer, brand name, color, size, style, or model number; and\n  (2) the total cost of the item, including tax, installation, delivery\nor freight charges; and\n  (3) the amount of any charge for the use of the layaway method of\npayment such as a service or carrying charge or cancellation fee.\nFailure to make this disclosure shall preclude the imposition of such\ncharge or fee; and\n  (4) the duration of the layaway plan; and\n  (5) the required payment schedule, if any, and the consequences of\nmissing payments; and\n  (6) the merchant's refund policy with respect to payments made by\nconsumers; and\n  (7) the location, if other than the place of purchase, where the\nmerchandise is being stored or if the merchandise selected by the\nconsumer will not be removed from inventory upon receipt of the first\nlayaway payment by the merchant, there must be prominently disclosed on\nthe face of the writing given to the consumer, the time at which the\nmerchandise will be isolated from inventory or ordered by the merchant,\ne.g., NOTICE: NO MERCHANDISE WILL BE REMOVED FROM INVENTORY UNTIL ______\nPERCENT OF THE PURCHASE PRICE HAS BEEN PAID, or ATTENTION: YOUR\nSELECTION OF MERCHANDISE WILL NOT BE ORDERED UNTIL YOU HAVE MADE YOUR\nNEXT TO FINAL PAYMENT; and\n  (8) all other disclosures required by state or federal law.\n  (c) The merchant must tender the specified merchandise in good\ncondition to the consumer on demand upon receipt of the final layaway\npayment unless otherwise provided in the layaway plan.\n  (d) Whenever there shall be a violation of this section, an\napplication may be made by the attorney general in the name of the\npeople of the state of New York to a court or justice having\njurisdiction to issue an injunction, and upon notice to the defendant of\nnot less than five days, to enjoin and restrain the continuance of such\nviolations; and if it shall appear to the satisfaction of the court or\njustice that the defendant has, in fact, violated this section an\ninjunction may be issued by such court or justice, enjoining and\nrestraining any further violation, without requiring proof that any\nperson has, in fact, been injured or damaged thereby. In any such\nproceeding, the court may make allowances to the attorney general as\nprovided in paragraph six of subdivision (a) of section eighty-three\nhundred three of the civil practice law and rules, and direct\nrestitution.  In connection with any such proposed application, the\nattorney general is authorized to take proof and make a determination of\nthe relevant facts and to issue subpoenas in accordance with the civil\npractice law and rules.\n  (e) This section shall not annul, alter, affect or exempt any person\nsubject to the provisions of this section from complying with the laws,\nordinances, rules or regulations of any locality, relating to the\ndisclosure of layaway plans, except to the extent that these local laws,\nordinances, rules or regulations are inconsistent with any provision of\nthis section, but no such local law, ordinance, rule or regulation shall\nbe considered inconsistent, if it affords greater protection to the\nconsumer.\n  (f) The provisions of this section are intended, and are hereby\ndeclared to supersede any contrary provision of this article.\n