Assembly approves 'rain check' law to curb bait-and-switch sales; retailers raise concerns

The Assembly approved legislation (Assembly 6458, calendar 211) that requires sellers who advertise sale merchandise to either provide a rain check to a customer when advertised items are unavailable or to conspicuously disclose the quantity available or that no rain checks will be offered.

Sponsor Miss Galef said the measure is designed to prevent bait-and-switch tactics and protect consumers who come to a store expecting an advertised price. The sponsor said rain checks would typically be redeemable for 60 days (10 days in some supply situations) and that food products are generally governed by federal FTC rules.

Opponents warned the rule could be unduly burdensome amid high inflation and supply-chain problems, arguing it could discourage retailers from advertising sales, impose storage or capital costs for reserved items, and unfairly affect small, mom-and-pop businesses and rural dealers with limited staffing or internet access.

Supporters and the sponsor noted existing examples in New York City and Westchester County and said the bill includes an affirmative defense when a seller cannot obtain replacement stock through no fault of its own. Members exchanged detailed questions about how notices must be presented in advertisements, whether blanket statements would suffice, whether auction sales are covered, what constitutes an affirmative defense, and how often a seller could re-run a sale without offering rain checks.

After extensive floor debate and members explaining their votes, the clerk recorded the result and the bill was passed. The transcript records substantial back-and-forth and many members' explanations; it does not include post-passage regulatory text or enforcement guidance.

What happens next: The measure passed on the Assembly floor; the transcript does not include implementing regulations or enforcement procedures.