NY Tax L § 484 (2021)
2021 New York Laws TAX - Tax Article 20-A - Cigarette Marketing Standards 484 - Unlawful Acts; Violations of Article.

§  484.  Unlawful acts; violations of article. (a) Notwithstanding any other provision of law, it shall be unlawful and  a  violation  of  this article:   1.  For  any  agent, wholesale dealer or retail dealer, with intent to injure competitors or destroy or substantially  lessen  competition,  or with  intent to avoid the collection or paying over of such taxes as may be required by law, to advertise, offer to sell, or sell  cigarettes  at less  than  cost of such agent wholesale dealer or retail dealer, as the case may be.   2. For any wholesale dealer:  (A) to induce or attempt to induce or to procure or attempt to procure the purchase of cigarettes at a price less than the cost  of  the  agent with respect to sales to wholesale dealers; or  (B) to induce or attempt to induce or to procure or attempt to procure any  rebate or concession of any kind or nature whatsoever in connection with the purchase of cigarettes.   3. For any chain store:  (A) to induce or attempt to induce or to procure or attempt to procure the purchase of cigarettes at a price less than the cost  of  the  agent with respect to sales to chain stores; or  (B) to induce or attempt to induce or to procure or attempt to procure any  rebate or concession of any kind or nature whatsoever in connection with the purchase of cigarettes.   4. For any retail dealer:  (A) to induce or attempt to induce or to procure or attempt to procure the purchase of cigarettes at a price less than the cost  of  the  agent for  sales  to retail dealers, if purchased from an agent, or at a price less than the cost of the wholesale dealer; or  (B) to induce or attempt to induce or to procure or attempt to procure any rebate or concession of any kind or nature whatsoever in  connection with the purchase of cigarettes.   5.  (A)  Upon  a  first  violation  of  any  of the provisions of this article,  after  due  notice  and  opportunity  for   a   hearing,   the commissioner  may  suspend  the license of any agent or wholesale dealer for a period of not more than thirty days or impose a civil fine not  to exceed twenty thousand dollars or both such suspension and fine.  (B) Upon a second or subsequent violation committed within three years following a prior finding of violation, after due notice and opportunity for a hearing, the commissioner shall revoke the license of any agent or wholesale  dealer unless (i) the penalty imposed for the first violation was a fine only; or (ii) the commissioner determines, on  a  showing  by the  agent  or wholesale dealer, that the second or subsequent violation is due to reasonable cause or that such agent or wholesale dealer  acted in  good  faith, in which case the commissioner may suspend such license for a period of not more than sixty days or impose a civil fine  not  to exceed fifty thousand dollars or both such suspension and fine.  (C)  In  determining  whether to suspend or revoke or in assessing the amount of any fine under this paragraph the commissioner shall give  due consideration  to  the gravity of the violation, the size of the agent's or wholesale dealer's business, the amount of the sale in  violation  of this  article  below  the  minimum  markup  and  the history of previous violations. The penalties  provided  for  in  this  paragraph  shall  be determined,  assessed,  collected  and  paid  in  the manner provided in section four hundred seventy-eight of this chapter, as if such penalties were taxes imposed pursuant to this article.   6. Evidence of advertisement, offering to sell or sale  of  cigarettes by  any  agent,  wholesale  dealer, chain store or retail dealer at less than cost, or evidence of any offer of a rebate in price, or giving of a  rebate in price, or an offer  of  a  concession,  or  the  giving  of  a concession  of any kind or nature whatsoever in connection with the sale of cigarettes, or the inducing or attempt to induce or to the  procuring or  the  attempt  to  procure the purchase of cigarettes at a price less than cost of the agent, wholesale dealer,  chain  store  or  the  retail dealer,  shall  be  prima facie evidence of intent to injure competitors and to destroy or substantially lessen  competition,  or  of  intent  to avoid  the collection or paying over of such taxes as may be required by law.  (b) 1. An action may be maintained in the supreme  court  to  prevent, restrain  or  enjoin a violation, or threatened violation, of any of the provisions of this article. Such an action  may  be  instituted  by  any person injured by any violation or threatened violation of this article, or  by  the  tax commission. If in such action a violation or threatened violation of this article shall be established, the court  shall  enjoin and  restrain,  or  otherwise  prohibit,  such  violation  or threatened violation. In such action it shall not be necessary that actual  damages to the plaintiff be alleged or proved, but where alleged and proved, the plaintiff  in  said  action,  in  addition to such injunctive relief and costs of suit, including reasonable attorney's fees, shall  be  entitled to  recover  from  the  defendant  the  actual damages sustained by such plaintiff.   2. In the event that no injunctive relief is sought or  required,  any person injured by a violation of this article may maintain an action for damages  and  costs  of suit in the supreme court as provided for in the civil practice law and rules.  (c) Any  contract,  expressed  or  implied,  made  by  any  person  in violation  of any of the provisions of this article is declared to be an illegal and void contract, and no recovery thereon shall be had.  (d) The provisions of this article shall not be applicable to any sale as to which the tax imposed by section four hundred seventy-one of  this chapter  is not applicable or to a sale to the department of corrections and  community  supervision  of  this  state  for  sale  to  or  use  by incarcerated  individuals in institutions under the jurisdiction of such department.