New York Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

New York's New Car Lemon Law covers vehicles (other than off-road vehicles) used mainly for personal, family or household purposes that were bought, leased or transferred in New York or are registered here, while under the manufacturer's express warranty. Protection covers defects during the first 18,000 miles or two years from original delivery, whichever comes first. A reasonable number of repair attempts is presumed if the same defect has been subject to repair four or more times and still exists, or the vehicle has been out of service for repairs for a total of 30 or more calendar days in that period. At the consumer's option, the manufacturer must replace the vehicle with a comparable one or refund the full purchase or lease price plus fees and charges, minus an allowance for use beyond the first 12,000 miles and for damage beyond normal wear. Consumers may use the manufacturer's dispute program or the state arbitration program set up under Attorney General regulations (a filing fee applies). A court may award reasonable attorney's fees to a winning consumer.

New York's Used Car Lemon Law requires dealers to give a written warranty on used cars that cost at least $1,500 and were bought after the first 18,000 miles or two years of use. The minimum warranty is 90 days or 4,000 miles for cars with up to 36,000 miles; 60 days or 3,000 miles for cars with more than 36,000 but less than 80,000 miles; and 30 days or 1,000 miles for cars with 80,000 to 100,000 miles. Cars with more than 100,000 miles are excluded if that is stated in writing at sale. The warranty covers major parts, including engine, transmission, drive axle, brakes, radiator, steering, and the alternator, generator, starter and ignition system (not the battery). If the same defect is repaired three or more times, or the car is out of service for a total of 15 or more days during the warranty, the dealer must take the car back and refund the full price (less an allowance for damage beyond normal wear), or offer a comparable replacement the consumer may decline. Any agreement waiving these rights is void.

Under the Door-to-Door Sales Protection Act, a buyer in a door-to-door sale (a sale, lease or rental of consumer goods or services personally solicited by the seller, with the buyer's offer made somewhere other than the seller's place of business) may cancel any time before midnight of the third business day after the transaction, by mailing or delivering a signed and dated cancellation notice or other written notice. If the seller does not provide the required disclosures, the buyer may cancel in any manner, and the cancellation period does not start until the seller complies. Exclusions include purchases of $25 or less that can be delivered at one time, sales negotiated at a retail store, sales made entirely by mail or phone, buyer-requested home repairs, certain emergencies, real property, insurance and securities. Home improvement contracts and credit repair contracts also carry three-day cancellation rights.

New York General Business Law § 349 declares unlawful unfair, deceptive or abusive acts or practices in business, trade or commerce or in furnishing any service in the state. Consumers can sue: a person injured by a deceptive act or practice may seek an injunction and recover actual damages or $50, whichever is greater. If the court finds the business acted willfully or knowingly, it may increase damages up to three times actual damages, up to $1,000, and it may award reasonable attorney's fees to a winning plaintiff. The Attorney General can seek injunctions and restitution.

If the customer asks, a motor vehicle repair shop must give a written estimate of the parts and labor for the job (it may charge a reasonable fee for preparing it). The shop may not charge for work or parts beyond the estimate without the customer's consent. On timely written demand, the shop must make replaced parts available to the customer, except warranty or exchange parts. Every job must be recorded on an invoice describing all work and parts, stating whether any parts are used, with a copy given to the customer.

During an abnormal disruption of the market (for example from weather, energy shortages, strikes, civil disorder, war or other emergencies, or an FDA-reported drug shortage) that results in the Governor declaring a state of emergency, sellers may not charge an unconscionably excessive price for consumer goods and services, essential medical supplies and services, or other essential goods and services. Prima facie proof includes a gross disparity between the price charged and the price before the disruption, or a price that grossly exceeds what similar goods were readily available for in the area; a seller can rebut by showing it only kept its prior profit margin or faced added costs beyond its control. The Attorney General enforces the law and may seek an injunction, restitution, and a civil penalty of up to $25,000 per violation or three times gross receipts, whichever is greater.

Gift certificates and gift cards may not expire earlier than nine years after issuance (promotional cards excepted). Sellers may not charge dormancy, service, latency, redemption, renewal or similar fees, and a card's value may not decline because of time passing or non-use; the only exception is an initial activation or issuance fee on an open-loop card, capped at $9. Terms, including any expiration date, fees and replacement procedure, must be clearly and conspicuously disclosed, and stores and ads must carry a notice that terms and conditions apply. A card (other than an open-loop or promotional card) with less than $5 remaining may be cashed out on request.

Retail stores and online retailers must conspicuously post their refund policy—on the item, at each register, visible from the register, or at each store entrance (online, near the item or before billing information is requested). The policy must say whether refunds are given and under what conditions, including for sale or "as is" items, items without proof of purchase, and fees such as restocking fees, and must tell consumers they can ask for a written copy. A retailer that violates the law must give a buyer, for up to 30 days after purchase, a cash refund or credit at the buyer's option, if the item is unused and undamaged and the purchase date can be verified.

Under New York's credit services law, it is an unfair and deceptive practice for a credit services (credit repair) business to take any fee before performing the contracted services. Contracts must be in writing, dated and signed, describe in detail the services and the credit report items to be changed with estimated dates, and include a copy of the consumer's current credit report. The consumer may cancel within three days after signing, and the contract must include a detachable Notice of Cancellation form.

Every home improvement contract must be in writing and signed by all parties, and the owner must get a contractor-signed copy before work begins. It must include the contractor's name, address, phone and license number (if applicable), approximate start and substantial-completion dates, a description of the work and materials (including make and model), the price, a mechanic's lien notice, whether a completion date is "of the essence," and information about any applicable insurance. The owner may cancel until midnight of the third business day after signing (with limited emergency exceptions). Payments received before completion must be deposited as required by Lien Law § 71-a(4), or the contractor may instead post a bond, contract of indemnity or irrevocable letter of credit; progress payments must follow a written schedule.

Any person or business that owns or licenses computerized data including private information must notify affected New York residents of a security breach in the most expedient time possible and without unreasonable delay, and within 30 days after discovering the breach. Notice may be delayed if law enforcement determines it would impede a criminal investigation. Notice is not required for an inadvertent disclosure by authorized persons if the business reasonably determines misuse is unlikely; that determination must be documented and kept for five years, and sent to the Attorney General within 10 days if more than 500 residents are affected. When residents are notified, the business must also notify the Attorney General, the Department of State and the Division of State Police (and the Department of Financial Services for covered financial entities). If more than 5,000 residents are notified at one time, consumer reporting agencies must also be notified.

The Attorney General's office accepts consumer complaints online by category, including retail and online purchases and services, internet and tech services, credit and personal finance, data privacy, price gouging during emergencies, vehicle lease or purchase disputes, and lemon law claims. Consumers can check complaint status online or call the OAG Help Line at 1-800-771-7755 (deaf or hard of hearing: 1-800-788-9898).

1) Report the problem: during the first 18,000 miles or two years after delivery, whichever comes first, the consumer reports the defect to the manufacturer, its agent or an authorized dealer. A dealer that receives the report must forward written notice to the manufacturer by certified mail within seven days. If the dealer refuses to start repairs within seven days, the consumer may send written notice of the refusal to the manufacturer by certified mail, return receipt requested; the manufacturer then has 20 days to start repairs. Keep all work orders, bills and correspondence. (Motor home owners who received written notice of the rule must also report to the manufacturer or dealer by certified mail after two repair attempts or 21 days out of service, giving the manufacturer a final repair chance.) 2) Arbitration: if the manufacturer has its own informal dispute program, the consumer must use it first before the refund-or-replacement remedy applies, but using it does not prevent the consumer from seeking other remedies. Alternatively, every consumer may choose the state's New Car Lemon Law Arbitration Program, which all manufacturers must accept. To use it, the consumer files a Request for Arbitration form with the Attorney General's Lemon Law Arbitration Unit; if accepted, the program administrator (the New York State Dispute Resolution Association) asks for a $250 filing fee, which is returned if the consumer wins. A hearing is set no later than 35 days after the fee is received, and the arbitrator decides within 40 days of that filing date. The decision is binding on both sides, with a limited right of court review under CPLR Article 75. 3) Deadline: a lawsuit under the lemon law must be filed within four years after the vehicle was originally delivered to the consumer.