Relates to false representation of affiliation or approval of state or local agencies as false advertising

◆ The sponsor's argument

Why Andrew Gounardes says this is needed

New York's landmark consumer protection law, Article 22-A of the General Business Law, renders deceptive "acts or practices in the conduct of any business, trade or commerce or in the furnishing of any service" unlaw- ful. Any person or firm in violation of this statute is subject to a state right of action from the Attorney General, a private right of action from injured parties, and civil penalties. The law makes specific mention of certain nefarious practices and tactics such as pension poaching for Veterans Affairs benefits and deceitful marketing by energy service companies (ESCOs). It also provides an additional civil penalty of up to $10,000 for persons or firms who willfully target seniors, in recognition of the vulnerable nature of this particular subset of consumers. Missing from this statute, however, is an express prohibition on commer- cial correspondence which purports to be affiliated with a government entity. Examples of for-profit companies disguising sales pitches as official and urgent government correspondence, from notices that a prop- erty tax bill may be about to increase to declarations that a consumer has been found eligible for Medicaid, abound. These predatory mailers will frequently target senior citizens, who may have trouble reading the fine print on the back of the envelope which states that the mail is not affiliated with any government agency. While federal rules issued by the Federal Trade Commission ban false or misleading representations of governmental authority for debt collectors, there is no such blanket prohibition for other industries. This bill would amend New York's General Business Law to clarify that mail which willfully creates a false impression of official correspond- ence is considered false advertising and subject to all penalties there- in described. It is the sponsor's hope that this change, if enacted, would better protect seniors from predatory advertising while encourag- ing companies to be clearer and more forthright about the products or services they are selling.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.