Secondhand Automobile Price Display
Proposed Rules: Closed to Comments
Statement of Basis and Purpose of Proposed Rule
Local Law 44 of 2015 amended Section 20-271 of Title 20 of the New York City Administrative Code to require secondhand dealers in automobiles operating in New York City to display the total selling price for each automobile offered for sale and the price of specified add-on products and to disclose that the purchase of add-on products is optional. The law also establishes penalties for lack of compliance with these requirements. The proposed rule is necessary to implement Local Law 44.
Section 20-270 of the New York City Administrative Code requires dealers who sell both secondhand and new items to post a sign to that effect. Section 20-271, as amended by Local Law 44, requires such dealers to label secondhand articles to inform the public that the items are not new. To protect consumers, the proposed rule provides examples of language that may be used to describe automobiles, products and parts that are not new.
New material is underlined.
[Deleted material is in brackets.]
“Shall” and “must” denote mandatory requirements and may be used interchangeably in the rules of this department, unless otherwise specified or unless the context clearly indicates otherwise.
A new Section 2-105 is added to Subchapter K of Chapter 2 of Title 6 of the Rules of the City of New York to read as follows:
§2-105 Labeling of secondhand automobiles and posting of prices for secondhand automobiles
(a) Labeling of Used Automobiles, Products and Parts.
(1) All secondhand automobiles, products and parts sold by secondhand automobile dealers operating in New York City that are not new shall be labeled as such. Easily understood words such as “secondhand,” “used,” “not new,” “demo model,” “pre-owned,” “refurbished” and “recycled” may be used to indicate that an item is not new.
(b) Total Selling Price Signs.
(1) The total selling price sign required by section 20-271(b)(1) of the administrative code of the city of New York shall be prominently displayed on the dashboard of the secondhand automobile to which the sign applies, or posted within five feet of the point of display of the secondhand automobile to which the sign applies. If the dashboard of the secondhand automobile is not visible to the consumer at eye-level or accessible to the consumer, the sign shall be prominently displayed at the point of display of such automobile.
(2) The total selling price sign shall display the total selling price in lettering that is clear, legible, bold and at least one inch in height. The sign must clearly indicate the automobile to which the total selling price applies.
(3) The total selling price sign shall state, in lettering that is clear, legible and at least one-half as high and one-half as broad as the largest print on the sign, that taxes and fees for securing registration and certificate of title are not included in the total selling price.
(c) Add-On Product Signs.
(1) Secondhand automobile dealers shall list the total selling price of add-on products, as defined in section 20-271(b)(2) of the administrative code of the city of New York in close proximity to the product description. If multiple add-on products are grouped together on the same sign, each add-on product must be listed separately, one item per line, with the price of the add-on product located to the right of the product description. Lettering for the description and the price of the add-on product must be clear, legible and the same size, which must be at least one inch in height.
(2) If add-on products are listed individually, the price of the add-on product must be in close proximity to the product description. Lettering for the description and the price of the add-on product must be clear, legible and the same size, which must be at least one inch in height.
(3) All signs required by section 20-271(b)(2) of the administrative code of the city of New York shall include the following language in lettering that is clear, legible, bold and capitalized, and at least one-half as high and one-half as broad as the largest print on the sign, but no less than one-quarter inch in height: “YOU ARE NOT REQUIRED TO BUY ANY ADD-ON PRODUCTS IN ORDER TO PURCHASE A CAR AT THE ADVERTISED PRICE.”
(d) The requirements of subdivisions (b) and (c) of this section shall apply to secondhand automobiles dealers that operate in New York City.