Source: Laws of New York, N.Y. General Business Law (GBS), Article 24, sections 360 et seq. (incl. 360-a registration of marks; 360-b service marks; 360-l anti-dilution). Official NYS Legislature server (public.leginfo.state.ny.us, Legislative Bill Drafting Commission). Retrieved 2026-07-10. Extracted from the full-GBS single-page render (lawssrch.cgi?NVLWO: QLAWDATA=**GBS), Article 24 body only.
| ARTICLE 24
| TRADEMARKS
| Section 360. Definitions.
| 360-a. Registrability.
| 360-b. Application for registration.
| 360-c. Filing of applications.
| 360-d. Certificate of registration.
424UDATE 424 424@LBD.
| 360-e. Duration and renewal.
| 360-f. Assignments, changes of name and other instruments.
| 360-g. Records.
| 360-h. Cancellation.
| 360-i. Classification.
| 360-j. Fraudulent registration.
| 360-k. Infringement.
| 360-l. Injury to business reputation; dilution.
| 360-m. Remedies.
| 360-n. Forum for actions regarding registration; service on out
| of state registrants.
| 360-o. Common law rights.
| 360-p. Fees.
| 360-q. Rules and regulations.
| 360-r. Severability.
| § 360. Definitions. (a) The term "trademark" as used herein means any
| word, name, symbol, or device or any combination thereof used by a
| person to identify and distinguish the goods of such person, including a
| unique product, from those manufactured and sold by others, and to indi-
| cate the source of the goods, even if that source is unknown.
| (b) The term "service mark" as used herein means any word, name,
| symbol, or device or any combination thereof used by a person to identi-
| fy and distinguish the services of one person, including a unique
| service, from the services of others, and to indicate the source of the
| services, even if that source is unknown. Titles, character names used
| by a person, and other distinctive features of radio or television
| programs may be registered as service marks notwithstanding that they,
| or the programs, may advertise the goods of the sponsor.
425UDATE 425 425@LBD.
| (c) The term "mark" as used herein includes any trademark or service
| mark, entitled to registration under this article whether registered or
| not.
| (d) The term "trade name" means any name used by a person to identify
| a business or vocation of such person.
| (e) The term "person" and any other word or term used to designate the
| applicant or other party entitled to a benefit or privilege or rendered
| liable under the provisions of this article includes a juristic person
| as well as a natural person. The term "juristic person" includes a firm,
| partnership, corporation, union, association, or other organization
| capable of suing and being sued in a court of law.
| (f) The term "applicant" as used herein embraces the person filing an
| application for registration of a mark under this article, and the legal
| representatives, successors, or assigns of such person.
| (g) The term "registrant" as used herein embraces the person to whom
| the registration of a mark under this article is issued, and the legal
| representatives, successors, or assigns of such person.
| (h) The term "use" means the bona fide use of a mark in the ordinary
| course of trade, and not made merely to reserve a right in a mark. For
| the purposes of this article, a mark shall be deemed to be in use (1) on
| goods when it is placed in any manner on the goods or other containers
| or the displays associated therewith or on the tags or labels affixed
| thereto, or if the nature of the goods makes such placement impractica-
| ble, then on documents associated with the goods or their sale, and the
| goods are sold or transported in commerce in this state, and (2) on
| services when it is used or displayed in the sale or advertising of
| services and the services are rendered in this state.
426UDATE 426 426@LBD.
| (i) A mark shall be deemed to be "abandoned" when either of the
| following occurs:
| (1) When its use has been discontinued with intent not to resume such
| use. Intent not to resume may be inferred from circumstances. Nonuse
| for two consecutive years shall constitute prima facie evidence of aban-
| donment.
| (2) When any course of conduct of the owner, including acts of omis-
| sion as well as commission, causes the mark to lose its significance as
| a mark.
| (j) The term "secretary" as used herein means the secretary of the
| state or the designee of the secretary.
| § 360-a. Registrability. A mark by which the goods or services of any
| applicant for registration may be distinguished from the goods or
| services of others shall not be registered if it:
| (a) consists of or comprises immoral, deceptive or scandalous matter;
| or
| (b) consists of or comprises matter which may disparage or falsely
| suggest a connection with persons, living or dead, institutions,
| beliefs, or national symbols, or bring them into contempt, or disrepute;
| or
| (c) consists of or comprises the flag or coat of arms or other insig-
| nia of the United States, or of any state or municipality, or of any
| foreign nation, or any simulation thereof; or
| (d) consists of or comprises the name, signature or portrait identify-
| ing a particular living individual, except by the individual's written
| consent; or
| (e) consists of a mark which, (1) when used on or in connection with
| the goods or services of the applicant, is merely descriptive or decep-
427UDATE 427 427@LBD.
| tively misdescriptive of them, or (2) when used on or in connection with
| the goods or services of the applicant is primarily geographically
| descriptive or deceptively misdescriptive of them, or (3) is primarily
| merely a surname, provided, however, that nothing in this subdivision
| shall prevent the registration of a mark used by the applicant which has
| become distinctive of the applicant's goods or services. The secretary
| may accept as evidence that the mark has become distinctive, as used on
| or in connection with the applicant's goods or services, proof of
| continuous use thereof as a mark by, the applicant in this state for the
| five years before the date on which the claim of distinctiveness is
| made; or
| (f) consists of or comprises a mark which so resembles a mark regis-
| tered in this state or a mark or trade name previously used by another
| and not abandoned, as to be likely, when used on or in connection with
| the goods or services of the applicant, to cause confusion or mistake or
| to deceive.
| § 360-b. Application for registration. Subject to the limitations set
| forth in this article, any person who uses a mark may file in the office
| of the secretary, in a manner complying with the requirements of the
| secretary, an application for registration of that mark setting forth,
| but not limited to, the following information:
| (a) the name and business address of the person applying for such
| registration; and, if a corporation, the state of incorporation, or if a
| partnership, the state in which the partnership is organized and the
| names of the general partners, as specified by the secretary,
| (b) the goods or services on or in connection with which the mark is
| used and the mode or manner in which the mark is used on or in
428UDATE 428 428@LBD.
| connection with such goods or services and the class in which such goods
| or services fall,
| (c) the date when the mark was first used anywhere and the date when
| it was first used in this state by the applicant or a predecessor in
| interest, and
| (d) a statement that the applicant is the owner of the mark, that the
| mark is in use, and that, to the knowledge of the person verifying the
| application, no other person has registered, either federally or in this
| state, or has the right to use such mark either in the identical form
| thereof or in such near resemblance thereto as to be likely, when
| applied to the goods or services of such other person, to cause
| confusion, or to cause mistake, or to deceive.
| The secretary may also require a statement as to whether an applica-
| tion to register the mark, or portions or a composite thereof, has been
| filed by the applicant or a predecessor in interest in the United States
| Patent and Trademark Office; and, if so, the applicant shall provide
| full particulars with respect thereto including the filing date and
| serial number of each application, the status thereof and, if any appli-
| cation was finally refused registration or has otherwise not resulted in
| a registration, the reasons therefor.
| The secretary may also require that a drawing of the mark, complying
| with such requirements as the secretary may specify, accompany the
| application.
| The application shall be signed and verified by oath, affirmation or
| declaration subject to perjury laws by the applicant or by a member of
| the firm or an officer of the corporation or association applying.
| The application shall be accompanied by three specimens showing the
| mark as actually used.
429UDATE 429 429@LBD.
| The application shall be accompanied by the application fee payable to
| the secretary of state.
| § 360-c. Filing of applications. (a) Upon the filing of an application
| for registration and payment of the application fee, the secretary may
| cause the application to be examined for conformity with this article.
| (b) The applicant shall provide any additional pertinent information
| requested by the secretary including a description of a design mark and
| may make, or authorize the secretary to make, such amendments to the
| application as may be reasonably requested by the secretary or deemed by
| the applicant to be advisable to respond to any rejection or objection.
| (c) The secretary may require the applicant to disclaim an unregistra-
| ble component of a mark otherwise registrable, and an applicant may
| voluntarily disclaim a component of a mark sought to be registered. No
| disclaimer shall prejudice or affect the applicant's or registrant's
| rights then existing or thereafter arising in the disclaimed matter, or
| the applicant's or registrant's rights of registration on another appli-
| cation if the disclaimed matter be or shall have become distinctive of
| the applicant's or registrant's goods or services.
| (d) Amendments may be made by the secretary upon the application
| submitted by the applicant upon applicant's agreement; or a fresh appli-
| cation may be required to be submitted.
| (e) If the applicant is found not to be entitled to registration, the
| secretary shall advise the applicant thereof and of the reasons there-
| for. The applicant shall have a reasonable period of time specified by
| the secretary in which to reply or to amend the application, in which
| event the application shall then be reexamined. This procedure may be
| repeated until (1) the secretary finally refuses registration of the
| mark or (2) the applicant fails to reply or amend within the specified
430UDATE 430 430@LBD.
| period, whereupon the application shall be deemed to have been aban-
| doned.
| (f) If the secretary finally refuses registration of the mark, the
| applicant may commence a proceeding pursuant to article seventy-eight of
| the civil practice law and rules for an order to compel such registra-
| tion. Such writ may be granted, but without costs to the secretary, on
| proof that all the statements in the application are true and that the
| mark is otherwise entitled to registration.
| (g) In the instance of applications concurrently being processed by
| the secretary seeking registration of the same or confusingly similar
| marks for the same or related goods or services, the secretary shall
| grant priority to the applications in order of filing. If a prior-filed
| application is granted a registration, the other application or applica-
| tions shall then be rejected. Any rejected applicant may bring an action
| for cancellation of the registration upon grounds of prior or superior
| rights to the mark, in accordance with the provisions of this article.
| § 360-d. Certificate of registration. Upon compliance by the applicant
| with the requirements of this article, the secretary shall cause a
| certificate of registration to be issued and delivered to the applicant.
| The certificate of registration shall be issued under the signature of
| the secretary and the seal of the state, and it shall show the name and
| business address and, if a corporation, the state of incorporation, or
| if a partnership, the state in which the partnership is organized and
| the names of the general partners, as specified by the secretary, of the
| person claiming ownership of the mark, the date claimed for the first
| use of the mark anywhere and the date claimed for the first use of the
| mark in this state, the class of goods or services and a description of
| the goods or services on or in connection with which the mark is used, a
431UDATE 431 431@LBD.
| reproduction of the mark, the registration date and the term of the
| registration. Any certificate of registration issued by the secretary
| under the provisions hereof or a copy thereof duly certified by the
| secretary shall be admissible in evidence as competent and sufficient
| proof of the registration of such mark in any actions or judicial
| proceedings in any court of this state.
| § 360-e. Duration and renewal. A registration of mark hereunder shall
| be effective for a term of ten years from the date of registration and,
| upon application filed within six months prior to the expiration of such
| term, in a manner complying with the requirements of the secretary, the
| registration may be renewed for a like term from the end of the expiring
| term. A renewal fee, payable to the secretary, shall accompany the
| application for renewal of the registration. A registration may be
| renewed for successive periods of ten years in like manner. Any regis-
| tration in force on the date on which this article shall become effec-
| tive shall continue in full force and effect for the unexpired term
| thereof and may be renewed by filing an application for renewal with the
| secretary complying with the requirements of the secretary and paying
| the aforementioned renewal fee therefor within six months prior to the
| expiration of the registration. All applications for renewal under this
| article, whether of registrations made under this article or of regis-
| trations effected under any prior law, shall include a verified state-
| ment that the mark has been and is still in use and include a specimen
| showing actual use of the mark on or in connection with the goods or
| services.
| § 360-f. Assignments, changes of name and other instruments. (a) Any
| mark and its registration hereunder shall be assignable with the good
| will of the business in which the mark is used, or with that part of the
432UDATE 432 432@LBD.
| good will of the business connected with the use of and symbolized by
| the mark. Assignment shall be by instruments in writing duly executed
| and may be recorded with the secretary upon the payment of the recording
| fee payable to the secretary who, upon recording of the assignment,
| shall issue in the name of the assignee a new certificate for the
| remainder of the term of the registration or of the last renewal there-
| of. An assignment of any registration under this article shall be void
| as against any subsequent purchaser for valuable consideration without
| notice, unless it is recorded with the secretary within three months
| after the date thereof or prior to such subsequent purchase.
| (b) Any registrant or applicant effecting a change of the name of the
| person to whom the mark was issued or for whom an application was filed
| may record a certificate of change of name of the registrant or appli-
| cant with the secretary upon the payment of the recording fee. The
| secretary may issue in the name of the assignee a certificate of regis-
| tration of an assigned application. The secretary may issue in the name
| of the assignee, a new certificate or registration for the remainder of
| the term of the registration or last renewal thereof.
| (c) Other instruments which relate to a mark registered or application
| pending pursuant to this article, such as, by way of example, licenses,
| security interests or mortgages, may be recorded in the discretion of
| the secretary, provided that such instrument is in writing and duly
| executed.
| (d) Acknowledgement shall be prima facie evidence of the execution of
| an assignment or other instrument and, when recorded by the secretary,
| the record shall be prima facie evidence of execution.
| (e) A photocopy of any instrument referred to in subdivision (a), (b)
| or (c) of this section, shall be accepted for recording if it is certi-
433UDATE 433 433@LBD.
| fied by any of the parties thereto, or their successors, to be a true
| and correct copy of the original.
| § 360-g. Records. The secretary shall keep for public examination a
| record of all marks registered or renewed under this article, as well as
| a record of all documents recorded pursuant to section three hundred
| sixty-f of this article.
| § 360-h. Cancellation. The secretary shall cancel from the register,
| in whole or in part:
| (a) any registration concerning which the secretary shall receive a
| voluntary request for cancellation thereof from the registrant or the
| assignee of record;
| (b) all registrations granted under this article and not renewed in
| accordance with the provisions hereof;
| (c) any registration concerning which a court of competent jurisdic-
| tion shall find:
| (1) that the registered mark has been abandoned,
| (2) that the registrant is not the owner of the mark,
| (3) that the registration was granted improperly,
| (4) that the registration was obtained fraudulently,
| (5) that the mark is or has become the generic name for the goods or
| services, or a portion thereof, for which it has been registered,
| (6) that the registered mark is so similar, as to be likely to cause
| confusion or mistake or to deceive, to a mark registered by another
| person in the United States Patent and Trademark Office prior to the
| date of the filing of the application for registration by the registrant
| hereunder, and not abandoned; provided, however, that, should the regis-
| trant prove that the registrant is the owner of a concurrent registra-
| tion of a mark in the United States Patent and Trademark Office covering
434UDATE 434 434@LBD.
| an area including this state, the registration hereunder shall not be
| cancelled for such area of the state, or
| (d) when a court of competent jurisdiction shall order cancellation of
| a registration on any ground.
| § 360-i. Classification. The secretary shall by regulation establish a
| classification of goods and services for convenience of administration
| of this article, but not to limit or extend the applicant's or regis-
| trant's rights, and a single application for registration of a mark may
| include any or all goods upon which, or services with which, the mark is
| actually being used indicating the appropriate class or classes of goods
| or services. When a single application includes goods or services which
| fall within multiple classes, the secretary may require payment of a fee
| for each class. To the extent practical, the classification of goods and
| services should conform to the classification adopted by the United
| States Patent and Trademark Office.
| § 360-j. Fraudulent registration. Any person who shall for himself or
| herself, or on behalf of any other person, procure the filing or regis-
| tration of any mark in the office of the secretary under the provisions
| hereof, by knowingly making any false or fraudulent representation or
| declaration, orally or in writing, or by any other fraudulent means,
| shall be liable to pay all damages sustained in consequence of such
| filing or registration, to be recovered by or on behalf of the party
| injured thereby in any court of competent jurisdiction.
| § 360-k. Infringement. Subject to the provisions of this section, any
| person who shall:
| (a) use, without the consent of the registrant, any reproduction,
| counterfeit, copy, or colorable imitation of a mark registered under
| this article in connection with the sale, distribution, offering for
435UDATE 435 435@LBD.
| sale, or advertising of any goods or services on or in connection with
| which such use is likely to cause confusion or mistake or to deceive as
| to the source of origin of such goods or services; or
| (b) reproduce, counterfeit, copy or colorably imitate any such mark
| and apply such reproduction, counterfeit, copy or colorable imitation to
| labels, signs, prints, packages, wrappers, receptacles, or advertise-
| ments intended to be used upon or in connection with the sale or other
| distribution in this state of such goods or services; shall be liable in
| a civil action by the registrant for any and all of the remedies
| provided in section three hundred sixty-l of this article, except that
| under this subdivision the registrant shall not be entitled to recover
| profits or damages unless the acts have been committed with the intent
| to cause confusion or mistake or to deceive.
| § 360-l. Injury to business reputation; dilution. Likelihood of injury
| to business reputation or of dilution of the distinctive quality of a
| mark or trade name shall be a ground for injunctive relief in cases of
| infringement of a mark registered or not registered or in cases of
| unfair competition, notwithstanding the absence of competition between
| the parties or the absence of confusion as to the source of goods or
| services.
| § 360-m. Remedies. 1. Any owner of a mark registered under this arti-
| cle may proceed by suit to enjoin the manufacture, use, display or sale
| of any counterfeits or imitations thereof and any court of competent
| jurisdiction may grant injunctions to restrain such manufacture, use,
| display or sale as may be by the said court deemed just and reasonable,
| and may require the defendants to pay to such owner all profits derived
| from and/or all damages suffered by reason of such wrongful manufacture,
| use, display or sale; and such court may also order that any such coun-
436UDATE 436 436@LBD.
| terfeits or imitations in the possession or under the control of any
| defendant in such case be delivered to an officer of the court, or to
| the complainant, to be destroyed or donated. The court, in its
| discretion, may enter judgment for an amount not to exceed three times
| such profits and damages and/or reasonable attorneys' fees of the
| prevailing party in such cases where the court finds the other party
| committed such wrongful acts with knowledge or in bad faith or otherwise
| as according to the circumstances of this case. The enumeration of any
| right or remedy herein shall not affect a registrant's right to prose-
| cute under the penal law.
| 2. If a court makes a determination that the counterfeit or imitation
| products should be donated, then notice of that determination shall be
| given to the lawful mark owner of the products. The notice shall state
| that the court intends to donate the seized products to help indigent
| individuals and that the donation will proceed unless the lawful mark
| owner objects to the donation, in writing. The lawful mark owner will
| have thirty days to object to the court to the donation. If the lawful
| mark owner does not object, or gives no response within that period
| despite having received the notice, then the court shall take that as a
| granting of consent by the lawful mark owner that the donation should
| proceed.
| 3. The counterfeit or imitation products may only be given to a not-
| for-profit corporation that has an established history of providing
| goods and services to indigent individuals. Organizations may petition
| the court to be considered a recipient of the counterfeit or imitation
| products. The judge, in his or her sole discretion, shall determine
| whether an organization qualifies pursuant to this subdivision and which
| organization shall receive the counterfeit or imitation products.
437UDATE 437 437@LBD.
| 4. Any counterfeit or imitation products received by an organization
| through this section may not be sold by the organization, nor may any
| person or entity in possession of any of these products sell such
| products.
| 5. Any not-for-profit corporation that has received counterfeit or
| imitation products through this section must have the products' identi-
| fying lawful mark tags removed or have the products marked, altered,
| imprinted or indelibly stamped so as to prevent their resale or any
| confusion with the actual products of the lawful mark owner. Such
| products must also be inspected by the not-for-profit corporation to
| ensure that they are in a condition consistent with the federal consumer
| safety standards that would ordinarily apply to the sale of comparable
| legitimate products.
| 6. Provided, however, that the only counterfeit or imitation products
| that may be donated pursuant to this section shall be clothing, includ-
| ing shoes, and all other counterfeit or imitation products must be
| destroyed in accordance with this section or any other provision of
| applicable law.
| § 360-n. Forum for actions regarding registration; service on out of
| state registrants. (a) Actions to require cancellation of a mark regis-
| tered pursuant to this article or in mandamus to compel registration of
| a mark pursuant to this article shall be brought in the supreme court.
| In an action in mandamus, the proceeding shall be based solely upon the
| record before the secretary. In an action for cancellation, the secre-
| tary shall not be made a party to the proceeding but shall be notified
| of the filing of the complaint by the clerk of the court in which it is
| filed and shall be given the right to intervene in the action.
438UDATE 438 438@LBD.
| (b) In any action brought against a non-resident registrant, service
| may be effected upon the secretary as agent for service of the regis-
| trant in accordance with the procedures established for service upon
| non-resident corporations and business entities.
| § 360-o. Common law rights. Nothing herein shall adversely affect the
| rights or the enforcement of rights in marks acquired in good faith at
| any time at common law.
| § 360-p. Fees. The application for registration or renewal shall be
| accompanied by a filing fee or fifty dollars payable to the secretary of
| state.
| § 360-q. Rules and regulations. The secretary of state may from time
| to time make regulations for carrying into effect the provisions of this
| article provided, however, that such supplementary regulations shall be
| strictly limited in their application to the means and methods of
| compliance with the provisions of this article to which such power
| relates.
| § 360-r. Severability. If any provision hereof, or the application of
| such provision to any person or circumstance is held invalid, the
| remainder of this article shall not be affected thereby.
| ARTICLE XXIV-A
| FAIR TRADE LAW
| Section 369-a. Price-fixing prohibited.
| 369-b. Manufacturer's warranty and guarantee.
| 369-c. Definitions.
| 369-d. Effect of partial invalidity.
| 369-e. Use of games of chance in selling commodities.
| 369-ee. Prize award schemes.
439UDATE 439 439@LBD.
| 369-eee. Telecommunication-related and energy-related prohibi-
| tions as to prize boxes.
| § 369-a. Price-fixing prohibited. Any contract provision that purports
| to restrain a vendee of a commodity from reselling such commodity at
| less than the price stipulated by the vendor or producer shall not be
| enforceable or actionable at law.
| § 369-b. Manufacturer's warranty and guarantee.
| A warranty or guarantee of merchandise may not be limited by a
| manufacturer doing business in this state solely for the reason that
| such merchandise is sold by a particular dealer or dealers, or that the
| dealer who sold the merchandise at retail has, since the date of sale,
| either gone out of business or no longer sells such merchandise. Any
| attempt to limit the manufacturer's warranty or guarantee for the afore-
| said reason is void.
| § 369-c. Definitions. The following terms, as used in this article,
| are hereby defined as follows: "Producer" means grower, baker, maker,
| manufacturer or publisher. "Commodity" means any subject of commerce.
| § 369-d. Effect of partial invalidity. If any provision of this arti-
| cle is declared unconstitutional it is the intent of the legislature
| that the remaining portions thereof shall not be affected but that such
| remaining portions remain in full force and effect.
| § 369-e. Use of games of chance in selling commodities. 1. Every
| person, firm or corporation proposing to engage in any game, contest or
| other promotion or advertising scheme or plan in connection with the
| promotion, advertising or sale of consumer products or services which
| offers the opportunity to receive gifts, prizes or gratutities, as
| determined by chance, without any consideration therefor, where the
| total announced value of the prizes offered is in excess of five thou-
440UDATE 440 440@LBD.
| sand dollars shall file with the secretary of state, at least thirty
| days prior to the commencement of such game, contest or promotion upon a
| form that he shall provide, a statement setting forth: the minimum
| number of participating objects to be made available; the minimum number
| of prize-winning objects that will be included in such promotion or
| advertising scheme or plan; the proportionate opportunity of winning
| prizes; the minimum value of prizes to be made available; and the rules
| and regulations pertaining to such promotion or advertising scheme or
| plan, which shall include the period of time and the geographic area to
| be covered by the contest and such other information as the secretary of
| state may, from time to time, require. The non-refundable filing fee of
| one hundred dollars shall accompany each such statement.
| Failure to file such statement shall be a class B misdemeanor.
| 2. Every person, firm or corporation, engaging in any promotion or
| advertising game or contest of the type set forth in subdivision one of
| this section, shall cause to be posted in a conspicuous and prominent
| location in every retail establishment offering the opportunity to
| participate in such game or contest and published in all advertising
| copy used in connection therewith, a statement showing the minimum
| number and value of prizes available to be won over a stated period of
| time and stated geographic area, and the rules and regulations pertain-
| ing to such promotion or advertising scheme or plan. Failure to cause
| such posting and publication shall be a class B misdemeanor.
| 3. Every person, firm or corporation who manipulates or rigs any
| promotion or advertising scheme or plan of the type set forth in subdi-
| vision one of this section so that prize-winning objects are dispersed
| to predetermined individuals or retail establishments shall be guilty of
| a class B misdemeanor, provided, however, that this subdivision shall
441UDATE 441 441@LBD.
| not prevent distribution of prize-winning objects of equal value to
| retail establishments in a uniform ratio to the number of participating
| objects distributed to those establishments.
| 4. Every person, firm or corporation engaging in any promotion or
| advertising game or contest of the type set forth in subdivision one of
| this section shall establish and maintain a special trust account in a
| branch of a national or state chartered banking institution with a
| balance sufficient to pay or purchase the total value of prizes offered.
| In lieu of establishing such trust account, said operator may furnish a
| bond, with sufficient sureties, in an amount equal to the total value of
| all prizes offered; such bond shall be in favor of the people of the
| state of New York. A copy of a certificate of deposit indicating the
| balance of said trust account or a copy of the surety bond shall be
| filed with the office of the secretary of state simultaneously with the
| filing of the statement required by subdivision one hereof. The monies
| so held in escrow or said surety bond shall at all times equal the total
| amount of prizes so offered. The monies may be withdrawn, from time to
| time, in order to pay, award or purchase prizes offered only upon
| certification to the secretary of state of the names and addresses of
| the winners and the amount or value of the respective prizes.
| 5. Every person, firm or corporation engaging in any promotion or
| advertising scheme or plan of the type set forth in subdivision one of
| this section shall within ninety days following the completion of said
| promotion or advertising scheme or plan, file with the secretary of
| state a listing of the name and address of each winner of every prize
| having a value of more than twenty-five dollars, the description of the
| prize won by each such person, and the date when such prize was deliv-
| ered to each such person, and shall maintain complete records of such
442UDATE 442 442@LBD.
| promotion or advertising scheme or plan for a period of six months ther-
| eafter. Failure to file such listing with the secretary of state or to
| maintain such records shall be a class B misdemeanor. A copy of such
| listing shall be furnished, without charge, to any person who requests
| the same from said promoter. Nothing herein shall prohibit a requirement
| that such request must be accompanied by a stamped, self-addressed
| envelope provided such requirement shall be included in and made a part
| of the rules and regulations filed pursuant to subdivision one of this
| section.
| 6. Every person, firm or corporation who prints, publishes or circu-
| lates literature or advertising material, used in connection with any
| promotion or advertising scheme or plan of the type set forth in subdi-
| vision one of this section, which is false, deceptive or misleading,
| shall be guilty of a class B misdemeanor.
| 7. Every person, firm or corporation who coerces a retail dealer to
| participate in any promotion or advertising scheme or plan of the type
| set forth in subdivision one of this section shall be guilty of a class
| B misdemeanor. Such coercion includes, but is not limited to, circum-
| stances in which a course of business conduct extending over a period of
| one year or longer between a supplier and a dealer is materially
| changed, for no legitimate business reason, coincident with a failure or
| refusal of the dealer to participate in such games.
| 8. Whenever the attorney general shall have reason to believe that any
| promotion or advertising scheme or plan of the type set forth in subdi-
| vision one of this section is being operated in violation of this
| section, he may bring an action in the supreme court, in the name and on
| behalf of the people of the state of New York to enjoin the continued
| operation of such promotion or advertising scheme or plan. An action for
443UDATE 443 443@LBD.
| violation of this section may be instituted by the attorney general in
| the name of the people of the state of New York, and in any such action,
| the attorney general shall exercise all of the powers and perform all
| the duties which the district attorney would otherwise be authorized to
| exercise or to perform therein.
| § 369-ee. Prize award schemes. 1. Written disclosure. (a) Unless writ-
| ten disclosure is made as provided in paragraph (c) of this subdivision,
| it shall be unlawful for any person, firm or corporation to offer a
| consumer a prize as part of any prize award scheme.
| (b) For purposes of this section, "prize award scheme" shall mean a
| promotion, solicitation, or advertisement either oral, written, or
| otherwise for the purchase or lease of a product, real estate, an
| investment, services, a membership, or any other item: (i) in which the
| outcome depends in a material degree upon an element of chance, notwith-
| standing that skill or performance of the consumer may also be a factor
| therein; (ii) where the consumer is told that he has won or may win a
| prize or award, or is told that he or she is or may be the winner of a
| contest, or where similar language is used which would lead a consumer
| to believe that he or she has won or may win a prize or award; and (iii)
| which requires the consumer to do something (including, but not limited
| to, traveling to a location to accept the prize, listening to a sales
| presentation, submitting one's credit card account number, allowing a
| sales person into one's home or responding orally or in writing).
| (c) Such written disclosure must be furnished to the consumer at the
| time he is notified of the prize and must be written or printed in a
| size equal to at least that type used for the standard text on the front
| of the first page of the offer. The written disclosure must clearly and
| conspicuously disclose all of the following: (i) a full description of
444UDATE 444 444@LBD.
| the exact prize won by the consumer including a list price which does
| not appreciably exceed the highest price at which substantial sales are
| made in the offering area; (ii) all material terms and conditions
| attached to the prize; (iii) a statement, where applicable, that the
| consumer must submit to a sales presentation; (iv) a full description of
| the product, real estate, investment, services, membership or any other
| item to be offered for sale, including the price of the least expensive
| and the most expensive item or parcel; (v) a notice that if the consumer
| decides to purchase any item offered for sale he has three business days
| in which to cancel such sale; and (vi) the odds of winning each prize
| must be conspicuously disclosed in the same type face, size and boldness
| and adjacent to the most prominent listing of the prizes on the front of
| the first page of the offer, with the odds stated in arabic numbers and
| identify the total number of prizes to be given away and the total
| number of offerings to be distributed.
| (d) It shall be unlawful to (i) represent that a person is a "winner"
| or has been "selected", or words of similar import when all or a
| substantial number of those solicited receive the same "prize" or
| "opportunity" or (ii) deliver, or cause to be delivered, a prize notice
| or offering, which simulates or falsely represents that it is a document
| authorized, issued or approved by any court, official, or agency of the
| United States or any state, lawyer, law firm, or insurance or brokerage
| company, or which creates a false impression as to its source, authori-
| zation, or approval; or (iii) deliver, or cause to be delivered, a prize
| notice or offering which is in the form of, or a prize notice or offer-
| ing which includes, a document which simulates a bond, check or other
| negotiable instrument, whether or not that document contains a statement
| or some other indication which suggests that it is non-negotiable.
445UDATE 445 445@LBD.
| 2. Right of cancellation. In addition to any other right to revoke an
| offer, the consumer may cancel a sale made as a result of a prize award
| solicitation until midnight of the third business day after the day on
| which he signed a sales agreement. Cancellation occurs when written
| notice of cancellation is given to the seller. Notice of cancellation,
| if given by mail, shall be deemed given when deposited in a mailbox
| properly addressed and postage pre-paid.
| 2-a. Prize claims by pay-per-call services. It shall be unlawful for
| any person, firm or corporation to offer a consumer a prize, if in order
| to claim the prize, the consumer must call a pay-per-call service where
| the charge for such pay-per-call service is greater than the service
| charge authorized by the appropriate regulatory commission. As used in
| this subdivision "pay-per-call service" means any telephone service for
| which the calling party is assessed, by virtue of completing the call, a
| charge for which the caller pays a per-call or per-time charge.
| 3. Form of notice. (a) In a sale consummated as a result of or made in
| association with a prize award scheme, the seller shall furnish to the
| buyer (i) a fully completed receipt or copy of any contract pertaining
| to such sale at the time of its execution, which is in the same
| language, e.g. Spanish, as that principally used in the oral sales pres-
| entation and which shows the date of the transaction and contains the
| name and address of the seller, and in immediate proximity to the space
| reserved in the contract for the signature of the buyer or on the front
| page of the receipt if a contract is not used and in not less than ten-
| point bold face type, a statement in substantially the following form:
| "YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY
| TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER
446UDATE 446 446@LBD.
| THE DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE
| OF CANCELLATION FORM FOR AN EXPLANATION OF THIS
| RIGHT."; and
| (ii) at the time the buyer signs the contract or otherwise agrees to
| buy consumer goods or services from the seller, a completed form in
| duplicate, captioned "NOTICE OF CANCELLATION", which shall be attached
| to the contract or receipt and easily detachable, and which shall
| contain in not less than ten-point bold face type the following informa-
| tion and statements in the same language, e.g. Spanish, as that used in
| the contract:
| NOTICE OF CANCELLATION
| (enter date of transaction)
| _________________________________________
| (Date)
| YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR OBLIGATION,
| WITHIN THREE BUSINESS DAYS FROM THE ABOVE DATE.
| IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE BY YOU UNDER
| THE CONTRACT OR SALE, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU WILL
| BE RETURNED WITHIN 10 BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF
| YOUR CANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF THE
| TRANSACTION WILL BE CANCELLED.
447UDATE 447 447@LBD.
| IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE SELLER AT YOUR RESIDENCE,
| IN SUBSTANTIALLY AS GOOD CONDITION AS WHEN RECEIVED, ANY GOODS DELIVERED
| TO YOU UNDER THIS CONTRACT OR SALE; OR YOU MAY IF YOU WISH, COMPLY WITH
| THE INSTRUCTIONS OF THE SELLER REGARDING THE RETURN SHIPMENT OF THE
| GOODS AT THE SELLER'S EXPENSE AND RISK.
| IF YOU DO MAKE THE GOODS AVAILABLE TO THE SELLER AND THE SELLER DOES NOT
| PICK THEM UP WITHIN TWENTY DAYS OF THE DATE OF YOUR NOTICE OF CANCELLA-
| TION, YOU MAY RETAIN OR DISPOSE OF THE GOODS WITHOUT ANY FURTHER OBLI-
| GATION. IF YOU FAIL TO MAKE THE GOODS AVAILABLE TO THE SELLER, OR IF
| YOU AGREE TO RETURN THE GOODS TO THE SELLER AND FAIL TO DO SO, THEN YOU
| REMAIN LIABLE FOR PERFORMANCE OF ALL OBLIGATIONS UNDER THE CONTRACT.
| TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY OF
| THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE, OR SEND A TELE-
| GRAM, TO
| (Name of Seller), AT Address of Seller
| __________________ _________________________________
| (Place of Business) NOT LATER THAN MIDNIGHT OF
| __________________
| __________________
448UDATE 448 448@LBD.
| (Date)
| I HEREBY CANCEL THIS TRANSACTION.
| _________________
| (Date)
| ______________________________
| (Buyer's Signature)
| and the seller shall complete both copies by entering the name of the
| seller, the address of the seller's place of business, the date of the
| transaction, and the date, not earlier than the third business day
| following the date of the transaction, by which the buyer may give
| notice of cancellation.
| (a-1) In a sale or lease to be consummated as a result of or made in
| association with a prize award scheme, the seller shall not employ a
| courier to pick up and deliver or a courier pick-up and delivery service
| to retrieve a buyer's deposit or payment unless the seller is otherwise
| authorized to do business in this state in accordance with the require-
| ments of the business corporation law or the not-for-profit corporation
| law. If the seller fails to comply with this section, the buyer or any
| other person obligated for any part of the purchase price may cancel the
| contract or lease at any time by notifying the seller in any manner and
| by any means of his or her intention to cancel.
| (b) In a sale consummated as a result of or made in association with a
| prize award scheme, the seller shall inform each buyer orally, at the
| time he signs the contract or purchases the goods or services, of his
449UDATE 449 449@LBD.
| right to cancel. Until the seller has complied with this section, the
| buyer or any other person obligated for any part of the purchase price
| may cancel the contract by notifying the seller in any manner and by any
| means of his intention to cancel. The period prescribed by this subdi-
| vision shall begin to run from the time the seller complies with this
| section.
| (c) A prize award scheme contract or receipt shall not include any
| confession of judgment or any waiver of any of the rights to which the
| buyer is entitled under this section including specifically his right to
| cancel the sale in accordance with the provisions of this article.
| (d) This section shall not apply to the use of promotional materials,
| gifts or prizes distributed without charge or expense to any person,
| firm or corporation.
| (e) This section shall not apply to the use of promotional materials,
| gifts, or prizes by a retail store primarily engaged in the retail sale
| of goods or services for which this type of promotion is incidental and
| which requires the customer only to travel to the merchant's regular
| place of business to receive the gift, prize or award.
| (f) This section shall not apply to the solicitation or representa-
| tions offering a consumer a prize in connection with: (i) the sale or
| purchase of books, recordings, videocassettes, periodicals, and similar
| goods through a membership group or club which is regulated by the
| federal trade commission pursuant to Code of Federal Regulations, title
| 16, part 425.1 concerning use of negative option plans by sellers in
| commerce; (ii) the sale or purchase of goods ordered through a contrac-
| tual plan or arrangement such as a continuity plan, subscription
| arrangement, or a single sale or purchase series arrangement under which
| the seller ships goods to a consumer who has consented in advance to
450UDATE 450 450@LBD.
| receive the goods and after receipt of the goods is given a reasonable
| opportunity to examine the goods and to receive a full refund of charges
| for the goods, upon return of the goods undamaged; or (iii) sales by a
| catalog seller. For purposes of this section, "catalog seller" shall
| mean any entity (and its subsidiaries) or person at least fifty percent
| of whose annual revenues are derived from the sale of products sold in
| connection with the distribution of catalogs of at least twenty-four
| pages, which contain written descriptions or illustrations and sale
| prices for each item of merchandise and which are distributed in more
| than one state with a total annual distribution of at least two hundred
| fifty thousand.
| 4. Violations. Upon any violation of this section, an application may
| be made by the attorney general in the name of the people of the state
| 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 the violation. If it shall appear to the
| satisfaction of the court or justice that the defendant has violated
| this section, an injunction may be issued by the 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 restitu-
| tion. Whenever the court shall determine a violation of this section has
| occurred, it may impose a civil penalty of not more than one thousand
| dollars for each violation. In connection with an application made under
| this subdivision, the attorney general is authorized to take proof and
451UDATE 451 451@LBD.
| to make a determination of the relevant facts and to issue subpoenas in
| accordance with the civil practice law and rules.
| 5. Effect of other laws. The obligations imposed by this section shall
| be in addition to and not in derogation of the requirements of any other
| law.
| 6. Applicability. The provisions of subdivisions two and three of this
| section shall not apply to membership campground operators as defined in
| section six hundred fifty-one of this chapter.
| § 369-eee. Telecommunication-related and energy-related prohibitions
| as to prize boxes. 1. No box or container used to collect entries for
| sweepstakes or a contest may, at the same time, be used to collect
| letters of authorization or other documents that constitute authori-
| zations by consumers to change their primary long distance carriers or
| to receive or purchase natural gas, electric service, or any other tele-
| communication services.
| 2. Enforcement by attorney general. Whenever there shall be a
| violation of this article, 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 by a special proceeding to issue an injunc-
| tion, 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
| has, in fact, violated this article, an injunction may be issued by such
| court or justice, enjoining and restraining any further violation, with-
| out 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
452UDATE 452 452@LBD.
| rules, and direct restitution. Whenever the court shall determine that a
| violation of this article has occurred, the court may impose a civil
| penalty of not more than one thousand dollars for each violation. In
| connection with any such proposed application, the attorney general is
| authorized to take proof and make a determination of the relevant fact
| and to issue subpoenas in accordance with the civil practice law and
| rules.