Proposed Rules regarding the Prohibition of Cashless Establishments

Proposed Rules: Closed to Comments (View Public Comments Received:4)

Agency:
Comment By: 
Monday, August 3, 2020
Keywords:

Statement of Basis and Purpose of Proposed Rule

 

The Department of Consumer Affairs (“DCA” or “Department”) is proposing to add new rules to implement Local Law 34 of 2020 (LL34), which prohibits food stores and retail establishments from refusing to accept payment in cash and further prohibits food stores and retail establishments from charging a higher price to consumers who pay for commodities with cash, rather than through a cashless transaction. The intent of LL34 is to ensure that all New Yorkers, including those who are unbanked or underbanked, can make retail and food purchases using cash.

 

Specifically, these proposed rules would add presumptions that a food store or retail establishment is in violation of the prohibition on cashless establishments if it displays a sign representing that it does not accept payment in cash from consumers, or if an employee or agent of such food store or retail establishment represents that it does not accept cash.  These proposed rules would further add presumptions that a food store or retail establishment is in violation of the prohibition on cashless establishments if it displays a sign representing that it charges a higher price for consumers who pay with cash rather than through a cashless transaction, or if any employee or agent of such food store or retail establishment represents that it charges a higher price to consumers who pay for commodities in cash. These presumptions are necessary to allow the Department to effectively enforce the cashless establishments law.  Without these presumptions, the Department would be required to conduct test purchases of commodities using cash to establish whether food stores or retail establishments are refusing to accept cash.  Such test purchases are too costly and inefficient to perform. 

 

These proposed rules would also add a penalty schedule for the new prohibitions on cashless establishments.  The penalties are provided by section 20-840(d) of the New York City Administrative Code. 

 

DCA’s authority for this rule is found in Sections 1043 and 2203(f) of the New York City Charter, Sections 20-104(b) and 20-702 of the New York City Administrative Code, and Section 2 of Local Law 34 of 2020.

Public Hearing
Subject: 

DCA will hold a public hearing on the proposed rule regarding the prohibition on cashless establishments. The public hearing will take place at 10:00 AM on August 3, 2020. It will be accessible by phone and videoconference. Please dial 1-855-282-6330.
o Meeting number (access code): 160 481 6046
o Meeting password: zcNFs4WCF79

To participate in the public hearing via videoconference, please follow the online link: https://dcanyc.webex.com/dcanyc/j.php?MTID=m6296ab9a878ff6705674

Public Hearing Date: 
Monday, August 3, 2020 - 10:00am
Contact: 

Carlos Ortiz; 212 436 0345