Requires advertisements of a discounted price of a good or service have such price be actually discounted from a bona fide regular price.
If passed, this bill would impact both consumers and businesses within New York State. It aims to enhance consumer protection by ensuring that pricing advertised as 'discounted' reflects genuine savings. This change could result in increased transparency in advertising and pricing strategies across various industries, thereby fostering fair competition. For businesses, however, the new regulations may increase compliance costs and necessitate a reevaluation of marketing strategies to align with the new definition of discounted prices.
Bill S09365 proposes amendments to the General Business Law of New York, specifically targeting the advertising practices related to discounted prices of goods or services. The bill defines 'discounted price' and establishes that a price can only be considered discounted if it is a reduction from a bona fide regular price. The legislation aims to prevent misleading advertisements that could deceive consumers into thinking they are getting a better deal than they actually are. Introduced by Senator May on March 5, 2026, the bill is a response to increasing consumer concerns over deceptive pricing strategies seen in the marketplace.
While the bill primarily seeks to protect consumers from misleading advertising, it could meet resistance from businesses that fear it may impose stricter regulations on their advertising practices. Critics may argue that the definition of 'bona fide regular price' could be subjective, potentially leading to confusion about compliance and enforcement. Additionally, opponents might express concerns that limiting how discounts are advertised could reduce promotional opportunities, ultimately leading to higher prices for consumers as businesses adjust their pricing models to offset compliance costs.