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a. On or before December 1, 2017, the department shall create a consumer bill of rights that informs consumers of second-hand automobiles of certain rights and protections that are afforded to them by law. The commissioner shall determine the contents of such bill of rights by rule, provided that the bill of rights shall contain, at a minimum, the following information:
1. Every second-hand automobile dealer in New York city is required to offer an automobile contract cancellation option to each consumer of a second-hand automobile;
2. A consumer of a second-hand automobile is not required to accept financing from a second-hand automobile dealer and has the right to pay for such automobile in cash or seek a loan from another lender;
3. A second-hand automobile dealer shall not sell a second-hand automobile at a price higher than the price advertised, quoted or posted on the automobile, and may not increase the price of the automobile on the basis that a consumer has secured financing from a third-party lender;
4. A consumer of a second-hand automobile may file a complaint against a second-hand automobile dealer or retrieve the 311 complaint history of a second-hand automobile dealer by calling 311 and referencing the license number of such dealer;
5. A consumer of a second-hand automobile is entitled to a buyer's guide, as required by section 455.2 of title 16 of the code of federal regulations, as well as warranties and rights described in section 198-b of the general business law;
6. A consumer of a second-hand automobile is entitled to specific disclosures, including a disclosure that states the lowest annual percentage rate offered to such consumer by a financing company solicited on the consumer's behalf by a dealer and any fees being charged by the second-hand automobile dealer in connection with the financing of a second-hand automobile;
7. A consumer of a second-hand automobile is not required to purchase any add-on product as a condition of purchasing or financing a second-hand automobile at an offered price; and
8. A second-hand automobile dealer shall provide to a second-hand automobile consumer, in writing, the itemized cost of each add-on product to be included in the retail installment contract, including the monthly and total cost of financing with and without each such add-on product.
b. 1. Every second-hand automobile dealer shall conspicuously post a consumer bill of rights in their place of business in a form and manner to be prescribed by the commissioner by rule.
2. Prior to the execution of any sales contract for the purchase of a second-hand automobile, and in a form and manner prescribed by the commissioner by rule, a second-hand automobile dealer shall separately provide a consumer with a copy of the consumer bill of rights, the receipt of which the consumer must acknowledge by signing or initialing in writing. Such dealer shall provide such consumer with a copy of the signed or initialed consumer bill of rights.
3. Every second-hand automobile dealer shall provide the consumer bill of rights to a consumer in the language in which the sales contract was negotiated, provided the commissioner has made a sample bill of rights available in such language.
(L.L. 2017/198, 10/16/2017, eff. 2/13/2018)
a. A second-hand automobile dealer shall maintain a physical or electronic copy of each of the following documents relating to the sale of a second-hand automobile for six years after the date of execution by the consumer of such documents:
1. The buyer's order, bill of sale, any retail installment contract, and any document incorporated by reference into the bill of sale or retail installment contract;
2. Every document signed or initialed by the consumer in connection with the sale transaction;
3. Every written disclosure provided to, and signed or initialed by, the consumer pursuant to this subchapter;
4. Each signed automobile contract cancellation option document, whether accepted or declined by the consumer; and
5. Each signed document cancelling a sales contract or declining to cancel a sales contract pursuant to an automobile contract cancellation option.
b. The department may inspect and audit all records required to be maintained pursuant to this section.
c. A second-hand automobile dealer shall maintain a report on consumer use of automobile contract cancellation options in a format to be prescribed by the commissioner by rule. The report shall be made available upon request of the commissioner but in no instance shall such request be made more than once annually. The report shall include:
1. The total number of consumers that accepted an automobile contract cancellation option in connection with their second-hand automobile purchase; and
2. The total number of consumers that canceled their second-hand automobile sales contracts pursuant to an automobile contract cancellation option.
(L.L. 2017/197, 10/16/2017, eff. 2/13/2018)
The commissioner may submit to the council and the mayor a report of legislative recommendations on the regulation of the second-hand automobile dealer industry. Such report, should the commissioner elect to submit it, may address (i) whether it is advisable to create additional enforcement tools to promote compliance with sections 20-268.1, 20-268.2, 20-268.3, 20-268.4 and 20-268.5 by licensees; (ii) the effect such sections have had on the prevalence of predatory practices in the second-hand automobile dealer industry; (iii) whether new predatory practices have emerged in the second-hand automobile dealer industry; (iv) whether additional disclosure or reporting requirements for second-hand automobile dealers would mitigate consumer harm; and (v) the effectiveness of the department's outreach and education efforts in this area.
(L.L. 2017/197, 10/16/2017, eff. 2/13/2018)
a. Before any dealer in second-hand articles as defined by this subchapter, other than a vehicle dismantler, as defined in section 415-a of the vehicle and traffic law, purchases a second-hand catalytic converter, such dealer must obtain from the seller the following information:
1. The year, make, model and vehicle identification number for the vehicle from which the second-hand catalytic converter was removed;
2. A copy of the certificate of title or other documentation indicating that the seller has an ownership interest in the vehicle described in paragraph 1, or where the seller is the owner of a motor vehicle repair shop, as defined in section 398-b of the vehicle and traffic law, and the second-hand catalytic converter was removed by such owner in connection with a repair of the vehicle, the name and address of the owner of such vehicle and copies of all invoices related to such repair; and
3. The unique identifying number of the second-hand catalytic converter, if any.
b. Such dealer must determine that the second-hand catalytic converter is consistent with the manufacturer's specifications for a catalytic converter from the vehicle identified in the information provided pursuant to subdivision a and must document such determination.
c. Such dealer shall maintain an electronic record of the information provided pursuant to subdivision a for a minimum of six years from the date of the purchase of the second-hand catalytic converter. Such electronic record shall be created by the dealer at the time of each transaction. Such electronic record shall be maintained in a manner to be specified in rules of the police commissioner, which may include the real-time sharing or accessing of such records in an electronic format and/or through use of an internet website designated by the police commissioner. Such records shall be open to the inspection of officers and employees of the department and officers of the fire department or the police department during regular and usual business hours.
(L.L. 2022/123, 12/23/2022, eff. 4/22/2023)
The occurrence, as reported by the fire commissioner pursuant to subdivision c of section 27-4249 of the code, of more than two fires during any twelve-month period at a location operated for the salvage, dumping or wrecking of automobiles or parts thereof by a person licensed pursuant to this subchapter, shall be considered by the commissioner as prima facie evidence of the existence of a continuous danger to public health and safety and shall be grounds for the suspension or revocation of said license.
Every person licensed as a dealer in second-hand articles, who also sells new articles within the licensed premises, shall have a sign of not less than two hundred sixteen square inches with letters thereon not less than two inches in height prominently displayed within the department or area where said articles are sold, informing the public that new articles and second-hand articles are sold within said department or area.
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