All online sellers must have a refund policy and keep records on complaints filed against them, according to a new law passed by the New York legislature and signed by the Governor. The law spells out requirements online sellers must follow, defining online and Internet purchases as equivalent to mail-and telephone orders.

Attorney General Andrew M. Cuomo announced the passage of the bill, stating it ensures consumers are protected when making online purchases. Last year, more than 1,000 consumer complaints were submitted to the New York Attorney General's Internet Bureau regarding failure to deliver goods ordered online or other improper conduct related to online purchases. (It was not disclosed how many of those complaints involved sellers in New York state or in the United States.)

Specifically, the new law (S. 4964, Chapter 72) prohibits online businesses from:

• Advertising or accepting orders for merchandise that will not be available for shipment within thirty days, unless a longer period of time is conspicuously stated in advertisements, and
• Charging additional fees for expedited shipping when the seller does not reasonably expect the merchandise to be shipped within three business days of the date the order was placed.

The law also requires online businesses to:

• Display a legal business name and street address in all advertising materials that contain a post office box address,
• Describe the conditions under which a refund will be issued in all advertising materials, and
• Maintain records of complaints alleging failure to ship merchandise.

The new law takes effect immediately.

http://www.oag.state.ny.us/press/2007/jun/jun04a_07.html

http://www.senatorfuschillo.com/press_archive_story.asp?id=17027