Hunton Retail Law Resource

Earlier this year, New York Governor Kathy Hochul signed S.B. S1048A into law (which we reported about here) requiring sellers that impose credit card surcharges to post the total price, inclusive of the surcharge, on the item. The law is aimed at preventing consumers from being misled when making a purchase using their credit card. Governor Hochul recently announced guidance to help businesses better implement the law’s requirements. The guidelines, which include an informational video as well as a one page brochure, provide three affirmative ways companies may comply with the guidelines. Businesses can: (1) clearly display both the credit card and cash price; (2) list the higher credit card price and a “discount” for the cash purchases; or (3) use the same price for both cash and credit card purchases. However, business cannot: (1) put a sign on the register notifying consumers of a credit card fee; (2) include a separate line item on the receipt for something like a “convenience fee” or “administrative fee;” (3) advertise all prices include a cash discount that does not apply to credit card purchases; or (4) include a credit card warning surcharge on the item price tag. Given the hefty civil penalties for each violation (up to $500), businesses should consider these updated guidelines closely to ensure compliance.