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Bill Passes N.Y. Legislature to Protect Online Consumers

Measure defines online and Internet purchases as equivalent to mail and telephone orders.

New York Attorney General Andrew M. Cuomo announced the passage of a bill yesterday to ensure consumers are protected when making online purchases.

"Consumers have recognized the ease and convenience of shopping online, and it's imperative that state government provide protections as the Internet marketplace evolves," said Attorney General Cuomo. "We now have legislation in place that provides added protections to New Yorkers shopping online and I applaud the legislature for quickly passing this new safeguard for consumers."

Last year, more than 1,000 consumer complaints were submitted to the Attorney General's Internet Bureau regarding failure to deliver goods ordered online or other improper conduct related to online purchases. The measure affords online consumers the same protections as those who make purchases over the phone or through the mail. Those protections include:

  • Orders cannot be accepted for merchandise which cannot be reasonably anticipated to be shipped within 30 days.
  • All advertising and promotional materials must prominently feature: the legal name of the company, complete street address and details about what conditions in which a refund will be issued.
  • If products fail to ship within 30 days, the company must clearly provide the buyer with the opportunity to cancel the order and receive a refund or receive substitute merchandise.
  • Companies must maintain records of all complaints of failure to ship merchandise or provide advertised services.
Senate Majority Leader Joseph L. Bruno said, "More and more people are making purchases online, but these customers don't have the same protections they have when making purchases over the phone, or by mail. This legislation puts important consumer protections in place for online shoppers, and I commend Senator Charles Fuschillo for this bill and his ongoing leadership in the area of consumer protection."

Assembly Speaker Sheldon Silver said, "The advent of ever-changing technology in our daily lives requires that our laws keep pace. This legislation ensures consumers the same right to prompt delivery of goods and services that are required with other retail forms."