N.Y. General Business Law § 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.