Section 396. Unlawful selling practices  


Latest version.
  • 1. No person, firm, partnership,
      association or corporation, or agent or employee thereof, shall, in  any
      manner,   or   by   any  means  of  advertisement,  or  other  means  of
      communication, offer for sale any merchandise, commodity, or service, as
      part of a plan or scheme with the intent, design, or purpose not to sell
      the merchandise, commodity, or service so advertised at the price stated
      therein, or  with  the  intent,  design  or  purpose  not  to  sell  the
      merchandise,  commodity,  or  service  so  advertised.  Nothing  in this
      section shall apply  to  any  television  or  sound  radio  broadcasting
      station  or  to  any  publisher  or printer of a newspaper, magazine, or
      other form of printed advertising, who broadcasts, publishes, or  prints
      such advertisement.
        2.  a.  No  person,  firm, partnership, association or corporation, or
      agent or employee thereof, shall, in any manner, or by any means,  offer
      for  sale  goods,  wares  or  merchandise,  where the offer includes the
      voluntary and unsolicited sending of goods,  wares  or  merchandise  not
      actually  ordered  or  requested  by  the recipient, either orally or in
      writing;  any  such  goods,  wares  or  merchandise  so  sent  shall  be
      prominently  marked  upon  the  container  thereof  in  bold  letters as
      follows: "THIS IS A GIFT. PAYMENT  NOT  REQUIRED  FOR  THIS  ITEM".  The
      receipt  of  any  goods,  wares  or  merchandise pursuant to an existing
      membership or club arrangement in  which  the  recipient  receives  such
      goods,  wares  or merchandise at specified intervals or a plan where the
      recipient agrees to receive such goods,  wares  or  merchandise  without
      further  obligation shall not be construed as the receipt of unsolicited
      goods, wares or merchandise for the  purposes  of  this  section.    The
      receipt  of  any  such unsolicited goods, wares or merchandise shall for
      all purposes be deemed an unconditional gift to the  recipient  who  may
      use  or  dispose  of  the  same  in  any  manner he sees fit without any
      obligation on his part to the sender.
        If after any such receipt deemed to be  an  unconditional  gift  under
      this  paragraph  a,  the  sender  continues  to  send bill statements or
      requests for payment with respect thereto, an action may be  brought  by
      the  recipient to enjoin such conduct, in which action there may also be
      awarded reasonable attorneys' fees and costs to the prevailing party.
        b. If a person is a member of an organization which makes retail sales
      of any goods, wares, or merchandise  to  its  members,  and  the  person
      notifies  the organization of his termination of membership by certified
      mail,  return  receipt  requested,  any  unordered  goods,   wares,   or
      merchandise  which  are  sent  to the person after thirty days following
      execution of  the  return  receipt  for  the  certified  letter  by  the
      organization,  shall  for  all purposes be deemed unconditional gifts to
      the person, who may use or dispose of the goods, wares,  or  merchandise
      in  any  manner  he  sees  fit without any obligation on his part to the
      organization.
        If the termination of  a  person's  membership  in  such  organization
      breaches   any   agreement   with  the  organization,  nothing  in  this
      subdivision shall relieve the person from liability for damages to which
      he might be otherwise subjected to pursuant to law.
        The provisions of this paragraph shall not apply to  a  member  of  an
      organization the sole purpose of which is the sale of a specific type of
      goods,  wares  or  merchandise  to  its  members  until  the  member has
      fulfilled his initial purchase obligation.
        3. 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  violation;  and  if  it
    
      shall  appear  to  the  satisfaction  of  the  court or justice that the
      defendant is, in fact, violating this  section,  an  injunction  may  be
      issued  by  such court or justice, enjoining and restraining such action
      or violation, without requiring proof that any person has, in fact, been
      misled or deceived or otherwise damaged thereby.