NY Gen Bus L § 396-T (2021)
2021 New York Laws GBS - General Business Article 26 - Miscellaneous 396-T - Unlawful Practices Relating to Layaway Plans.

§  396-t. Unlawful practices relating to layaway plans. (a) Definition of layaway plan. For purposes of this section, the term  "layaway  plan" shall  mean  a  purchase  over  the  amount of fifty dollars whereby the consumer agrees to pay in four or more installments for the purchase  of specific  merchandise,  delivery of which is to be made upon the payment of the full purchase price at a definite future date or at a date to  be selected by the consumer.  (b) It is an unlawful practice for a merchant to accept payment from a consumer  to be applied to the purchase of merchandise on a layaway plan without first disclosing  to  the  consumer  in  writing  the  following information:  (1)  a  description  of the merchandise to be purchased on the layaway plan including, as appropriate, the  type  of  item,  the  name  of  the manufacturer, brand name, color, size, style, or model number; and  (2)  the total cost of the item, including tax, installation, delivery or freight charges; and  (3) the amount of any charge for the use  of  the  layaway  method  of payment  such  as  a  service  or  carrying  charge or cancellation fee. Failure to make this disclosure shall preclude the  imposition  of  such charge or fee; and  (4) the duration of the layaway plan; and  (5)  the  required  payment  schedule, if any, and the consequences of missing payments; and  (6) the merchant's refund policy with  respect  to  payments  made  by consumers; and  (7)  the  location,  if  other  than  the place of purchase, where the merchandise is being stored  or  if  the  merchandise  selected  by  the consumer  will  not  be removed from inventory upon receipt of the first layaway payment by the merchant, there must be prominently disclosed  on the  face  of  the  writing given to the consumer, the time at which the merchandise will be isolated from inventory or ordered by the  merchant, e.g., NOTICE: NO MERCHANDISE WILL BE REMOVED FROM INVENTORY UNTIL ______ PERCENT  OF  THE  PURCHASE  PRICE  HAS  BEEN  PAID,  or  ATTENTION: YOUR SELECTION OF MERCHANDISE WILL NOT BE ORDERED UNTIL YOU  HAVE  MADE  YOUR NEXT TO FINAL PAYMENT; and  (8) all other disclosures required by state or federal law.  (c)  The  merchant  must  tender  the  specified  merchandise  in good condition to the consumer on demand upon receipt of  the  final  layaway payment unless otherwise provided in the layaway plan.  (d)   Whenever  there  shall  be  a  violation  of  this  section,  an application may be made by the attorney  general  in  the  name  of  the people  of  the  state  of  New  York  to  a  court  or  justice  having jurisdiction to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of  such violations;  and  if it shall appear to the satisfaction of the court or justice that the defendant  has,  in  fact,  violated  this  section  an injunction  may  be  issued  by  such  court  or  justice, enjoining and restraining any further violation,  without  requiring  proof  that  any person  has,  in  fact,  been  injured  or  damaged thereby. In any such proceeding, the court may make allowances to  the  attorney  general  as provided  in  paragraph  six  of subdivision (a) of section eighty-three hundred  three  of  the  civil  practice  law  and  rules,  and   direct restitution.    In  connection  with  any such proposed application, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with  the  civil practice law and rules.  (e)  This  section shall not annul, alter, affect or exempt any person subject to the provisions of this section from complying with the  laws,  ordinances,  rules  or  regulations  of  any  locality,  relating to the disclosure of layaway plans, except to the extent that these local laws, ordinances, rules or regulations are inconsistent with any provision  of this section, but no such local law, ordinance, rule or regulation shall be  considered  inconsistent,  if  it  affords greater protection to the consumer.  (f) The provisions of  this  section  are  intended,  and  are  hereby declared to supersede any contrary provision of this article.