New York A 5388: Prohibits deceptive gratuity solicitations

Bill Text

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A05388 Summary:

BILL NOA05388 

&nbsp

SAME ASNo Same As

&nbsp

SPONSORVanel

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Add §349-h, Gen Bus L

&nbsp

Makes it unlawful to solicit a gratuity in a deceptive manner.

Go to top A05388 Actions:

BILL NOA05388 

&nbsp

02/13/2025referred to consumer affairs and protection

01/07/2026referred to consumer affairs and protection

Go to topA05388 Committee&nbspVotes:

Go to topA05388 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA05388 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 5388

 2025-2026 Regular Sessions

 IN ASSEMBLY

 February 13, 2025
 ___________

 Introduced by M. of A. VANEL -- read once and referred to the Committee
 on Consumer Affairs and Protection

 AN ACT to amend the general business law, in relation to prohibiting
 deceptive gratuity solicitations

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The general business law is amended by adding a new section
 2 349-h to read as follows:
 3 § 349-h. Deceptive gratuity solicitations. 1. Definitions. As used in
 4 this section, the following terms shall have the following meanings:
 5 (a) "Point-of-sale terminal" shall mean an electronic device through
 6 which a consumer may initiate payment transactions.
 7 (b) "Establishment" shall mean a place of business that is open to the
 8 public in the state of New York.
 9 (c) "Automatic gratuity" shall mean a gratuity that is charged to the
 10 consumer's bill automatically and without further action from the
 11 consumer, regardless of the consumers ability to reduce or increase such
 12 gratuity.
 13 2. Deceptive gratuities. It shall be unlawful to solicit a gratuity in
 14 a deceptive manner. A gratuity is deemed to have been solicited in a
 15 deceptive manner where:
 16 (a) a suggested percentage or an automatic gratuity is provided and
 17 such dollar amount that is communicated to the consumer that is repres-
 18 ented by such percentage or automatic gratuity is inaccurate;
 19 (b) a suggested percentage or an automatic gratuity is provided and
 20 such percentage is calculated from the total amount owed including tax
 21 or any other fees that the establishment may impose;
 22 (c) other than situations where an automatic gratuity is provided, the
 23 ability to add no gratuity is not presented as a prominent and easily
 24 selectable individual option;

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD08426-01-5

 A. 5388 2

 1 (d) a suggested percentage is provided and lacks the corresponding
 2 dollar amount, or a suggested dollar amount is provided and lacks the
 3 corresponding percentage, without such corresponding dollar amount or
 4 percentage being conspicuously disclosed in close proximity to its
 5 corresponding suggested percentage or dollar amount; or
 6 (e) the solicitation is presented or functions in a manner proscribed
 7 by rules and regulations promulgated by the attorney general.
 8 3. Manufacturer's duties and liability. A manufacturer, software
 9 provider, or any entity responsible for developing or providing software
 10 for point-of-sale terminals:
 11 (a) shall ensure that all terminals sold after the effective date of
 12 this section do not include or have implemented any design or function,
 13 or any ability for an establishment to add a design or function, within
 14 a point-of-sale terminal that violates this section; and
 15 (b) which has the ability to furnish software updates to existing
 16 point-of-sale terminals shall update such terminals to exclude any
 17 prohibited designs or functions that violate this section by the effec-
 18 tive date of this section or, at such time when the attorney general
 19 proscribes additional deceptive designs or functions, that such termi-
 20 nals exclude any such prohibited designs or functions within a reason-
 21 able period of time as prescribed by the attorney general.
 22 4. Establishment's duties and liability. An establishment:
 23 (a) shall not solicit a gratuity in a deceptive manner in violation of
 24 subdivision two of this section;
 25 (b) that has a non-compliant point-of-sale terminal in u