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(a) License number. All advertising and sales literature must contain the license number of the contractor. For purposes of this section, an alphabetical listing in a telephone directory shall not be considered advertising.
(b) Prices and illustrations. Prices and descriptions of articles advertised shall be so placed in relation to any illustration that they will not be deceptive or misleading. An advertisement shall not be so designed as to give the impression that the price or terms of the featured merchandise apply to other merchandise in the advertisement when such is not the fact. An advertisement shall not be used which features merchandise at a price or terms boldly displayed, together with illustrations of higher-priced merchandise, so arranged as to give the impression that the lower price or more favorable terms apply to the higher priced merchandise, when such is not the fact.
(c) Headlines. Headings shall be free from exaggeration or deception. For example, a heading which refers to a different make, brand, grade, or quality than the item or items illustrated or listed immediately, therewith shall not be used. Headings and captions shall conform with the descriptions in the text.
(d) "Savings" not a selling price. A savings claim shall not be expressed in any manner which implies that the amount specified is the selling price of the merchandise.
(e) Descriptions and illustrations of advertised items or offers shall accurately portray the products to be sold as to size, quality, quantity and design.
(f) Materials. Any description in advertising or selling of materials to be furnished shall be accurate and there shall be no statement or implication that material will be of a particular type when such is not in fact the case.
(g) Advertised price, limitations. When a price or specific credit terms are featured in an advertisement, the advertisement shall accurately describe what is being offered at that price or terms (e.g. Where an item such as "10 feet by 16 feet Extension," "10 feet by 15 feet Basement," etc., is featured at a price or specific credit terms, this shall mean that a finished extension, basement, etc., will be built at the advertised price or terms). Any limitations or conditions on what will be supplied at the featured price or on credit terms shall be clearly and conspicuously stated in immediate conjunction with the featured statement (e.g.: "14 feet by 21 feet Frame Garage-Unpainted," "10 feet by 15 feet Extension – Shell Only.").
(h) Installation charge. If installation is extra, the advertising shall clearly and conspicuously disclose the fact in immediate conjunction therewith. For example:
"Installation extra"
"Plus installation"
"Installation at extra cost"
"Plus installation"
"Installation at extra cost"
(i) Accessories and extra charge. If the price advertised does not include all of the accessories which either appear in the advertisement, or which are necessary to effect proper installation and the use of the item (such as hardware, panels, frames, etc.), the advertisement shall state that fact clearly and prominently in dose conjunction with the advertised price. Extra charges shall not be used as a device to disguise the actual selling price of merchandise.
(j) Delivery charges. If an extra charge is required to make delivery of any advertised home improvement or part thereof, such requirement shall be clearly and conspicuously stated in the advertisement.
(k) "Factory to you," "No dealers." General statements such as "Factory to You," "Direct to You," "Buy from Manufacturer," "Save the Middleman's Profit," or phrases of similar meaning shall not be used unless the advertiser is actually the maker or producer of the merchandise advertised or offered for sale.
(l) Guaranty or warranty. If reference is made to a guaranty or warranty or the word "guaranteed" or "warranteed" is used, the terms, conditions, and period of time covered thereby shall be clearly and conspicuously disclosed in the advertisement. The terms shall indicate whether "labor and material only," "repair," "replacement," or "full (partial) refund" is offered. Any limitations shall be disclosed in the advertisement.
(m) Reasonable fulfillment, "Lifetime." Guaranty shall not extend for a period of time beyond the normal life of the item or service, or in the case of guarantees against defective materials and workmanship, beyond the time within which defective materials and workmanship are likely to show up. "Lifetime" and other long-term guarantees shall not be made.
(n) Credit and credit charges. All statement and claims regarding installment buying plans, and finance, credit service, carrying or service charges, etc., including references to down-payments and amounts and frequency of payments, shall be accurate and dearly understandable, and made in good faith.
(o) Credit terms. Where any repayment price is offered, it shall be stated in specific amounts per month.
(p) Price reductions. Claims which state or imply a price reduction or savings from the advertiser's previous price, whether as a dollar amount or percentage, must be based on the advertiser's usual and customary selling price for the item in the normal and regular course of his or her business. Such claims shall not be based on isolated or infrequent sales, on fictitious list prices, or by "guesstimating."
(q) Phrases featuring a sale with a stated time limitation (e.g. "3-Day Sale") shall be used only when the advertised items are to be taken off sale and will revert to a higher price for a reasonable length of time, immediately following the sale.
(r) Claimed results. Claims as to performance, protection, results which will be obtained by or realized from a particular home improvement product or service shall be based on known and provable facts. Extravagant claims such as "cuts fuel bill 30 percent," "outlasts . . ." the accuracy of which is dependent on factors over which the advertiser or seller has no control, should not be used.
(s) Model home and referral offers. No advertisement shall promise to any buyer or prospective buyer that his or her dwelling will serve as a so-called "model home" or "advertising job," or other similar representation, wherein the buyer or prospective buyer is led into believing that s/he will be paid a commission or other compensation for any sale made in the vicinity or within any specified distance from his or her home, or that the cost of the purchase of any home improvement product or service will thereby be reduced or fully paid.
(t) Insured and bonded. Where claims of being insured or bonded appear in an advertisement, the nature of the insurance or bond shall be distinctly stated in the advertisement.
(u) Pricing. If a price ("per square foot," or other basis) is quoted in the advertising of residential aluminum siding which does not include all costs for labor, parts, and accessories for the proper functioning and appearance of such installed product (e.g. starter-strips, door and window trim, window head flashing, back-up pieces and corner pieces), it shall be clearly and conspicuously qualified in conjunction therewith by some explanatory statement, such as "Panels Only – Necessary Accessories at Extra Cost."
(a) In the performance of any Home Improvement Contract it shall be the non-delegable duty and obligation of the prime contractor to secure or see to the securing of each and every permit, license, certificate of occupancy, special exception or the like necessary to the proper completion of such contract in accordance with applicable state or local building laws.
(b) Each home improvement contractor shall maintain books of account, copies of all contracts with buyers, and other such records as shall properly and completely reflect all transactions involving the home improvement business. These records shall be maintained for six years or the length of time of the contract guarantee, whichever is longer.
(c) A home improvement contractor must treat all funds received from a customer pursuant to a home improvement contract as trust funds to be applied solely to the payment of expenses directly related to the home improvement. Such funds may not be applied to the payment of expenses unrelated to the home improvement unless and until the home improvement is completed and all the expenses for direct labor, material and subcontractors related thereto have been paid by the contractor.
(d) Except as provided in 6 RCNY § 2-221(j), the home improvement contractor shall not perform or cause or permit the performance of any of the following actions until after the three day cancellation period has expired and s/he is reasonably satisfied that the customer has not exercised his or her right of cancellation:
(1) Disburse any money other than in escrow;
(2) Make any physical changes in the property of the customer;
(3) Perform any work or service for the buyer; or
(4) Make any deliveries to the residence of the customer if the creditor has retained or will acquire a security interest other than one arising by operation of law.
(a) Establishment. A Home Improvement Business Trust Fund (hereinafter, "the Fund") is hereby established to provide for the payment of outstanding awards to aggrieved consumers and fines owed to the Department. The Fund shall be administered by the Comptroller of the City of New York pursuant to Section 93(h) of the Charter.
(b) Participation in the Fund.
(1) Home improvement licensees may elect to participate in the Fund in lieu of furnishing a bond as required by the Home Improvement Business Law Bond Requirement which was imposed by the Commissioner on February 1, 1983, pursuant to § 20-115 of the New York City Administrative Code. The Commissioner hereby waives said bond requirement, which appears as 6 RCNY § 2-225, for any licensee who elects to participate in the Fund pursuant to the provisions of this section.
(2) Any home improvement license applicant who elects to participate in the Fund must submit to the Department a check in the amount of two hundred dollars, made payable to the New York City Department of Consumer and Worker Protection, before a license will be issued. Any bonded licensee may elect to participate in the Fund in lieu of continued compliance with the Bond Requirement of 6 RCNY § 2-225 by causing the Department to receive a check in the amount of two hundred dollars, made payable to the New York City Department of Consumer and Worker Protection, prior to the expiration or cancellation date of the licensee's bond. All fund participants who elect to continue to participate in the Fund shall contribute two hundred dollars upon each renewal of their license. Any fund participant who elects not to continue to participate in the Fund at the time of renewal shall furnish a bond in accordance with paragraph four of this subdivision and 6 RCNY § 2-225 before the renewal license will be issued. Failure to comply with this paragraph shall constitute a failure to comply with a lawful demand or requirement lawfully made by the Commissioner for purposes of § 20-392 of the Administrative Code.
(3) The Commissioner may, from time to time, amend this section to require such additional contributions by participants in the Fund as the Commissioner determines to be necessary to maintain an amount in the Fund which is adequate to fulfill its purposes and to counteract depletion of the Fund resulting from payments made out of the Fund pursuant to 6 RCNY § 2-224(c).
(4) Fund participants may discontinue their participation in the Fund at any time by filing a bond pursuant to the Home Improvement Business Law Bond Requirement. No participant will be entitled to a refund of any monies contributed to the Fund unless the Fund is dissolved by the Commissioner. All such refunds will be disbursed in accordance with regulations promulgated by the Commissioner and in effect at the time of such dissolution.
(5) Participation in the Fund does not relieve a licensee of any obligation to pay awards, fines, judgments, or arbitration awards rendered against a licensee, or agreed upon settlement amounts. If the Fund is invaded to pay an award, fine, judgment, or arbitration award rendered against such contractor, or a settlement amount pursuant to the provisions herein, no license shall be issued or reinstated to such contractor or to any home improvement business in which such contractor is an officer, shareholder, partner or principal, unless the amount(s) paid out of the Fund on behalf of such contractor is reimbursed by such contractor in full. If the Fund is invaded pursuant to the provisions herein to pay an award, fine, judgment, or arbitration award rendered against a contractor, or a settlement amount, the Department may suspend, revoke, or refuse to renew such contractor's license unless the amount(s) paid out of the Fund on behalf of such contractor is reimbursed by such contractor in full.
(6) In the event that a home improvement contractor's license is suspended, revoked, surrendered or the contractor fails to renew its license and the Fund invaded to pay an award, fine, judgment , or arbitration award rendered against such contractor, or a settlement amount pursuant to the provisions herein, the Commissioner or his or her designee shall have discretion to exclude such contractor, or any home improvement business in which such contractor is a principal, from future participation in the Fund. The Commissioner or his or her designee may, in his or her discretion, require such home improvement contractor to comply with the Home Improvement Business Law Bond Requirement.
(c) Invasion of the Fund.
(1) The Commissioner may require that disbursements be made from the Fund to pay outstanding amounts to consumers and Departmental fines when:
(i) the Department has (a) issued or received an administrative hearing decision that found that a home improvement contractor violated a law, ordinance or regulation enforced by the Department; (b) settled a summons or petition that charged a home improvement contractor with the violation of a law, ordinance, or regulation enforced by the Department; (c) resolved a consumer complaint filed against a home improvement contractor with a settlement agreement; or (d) received written notice of a judgment, arbitration award, or settlement agreement against a home improvement contractor that relates to activities for which a license is required; and
(ii) the Department has demanded that the home improvement contractor pay an amount in restitution to a consumer as set forth in the decision, settlement, judgment, or arbitration award required by subparagraph (i) of this paragraph; and
(iii) the contractor has failed to pay such amount in restitution to a consumer, a Departmental award or fine or satisfy a judgment or arbitration award, within 30 days of the date of the Department's demand for payment or as required by the terms of the settlement agreement; and
(iv) Notwithstanding the above, if a contractor has filed a petition for relief under any chapter of Title 11 of the United States Code, the Department may waive the requirements set forth in subparagraphs (ii) or (iii) of this paragraph and (1) require disbursements to be made from the Fund.
(2) Disbursements will not be made from the Fund to pay an award, fine, judgment, arbitration award, or settlement amount that is rendered against: a licensee who has furnished a bond, pursuant to the Bond Requirement of 6 RCNY § 2-225; or home improvement contractor who was never licensed by the Department or a participant in the Fund.
(3) Disbursements from the Fund will be made at the discretion of the Commissioner or his or her designee and shall be limited to no more than twenty-five thousand dollars for all awards, fines, judgments, arbitration awards, or settlement amounts, arising out of a single home improvement contract.
(4) The Commissioner or his or her designee may order that partial payment of awards, fines, judgments, arbitration awards, or settlement amounts be made from the Fund.
(6) Nothing contained herein shall be construed to create a right of any person to a portion of any of the Fund, except where the Commissioner directs a disbursement be made from the Fund pursuant to the provisions herein.
(7) Nothing contained herein shall be construed to provide for the payment of awards or judgments rendered against Fund participants in personal injury actions.
(d) Consumer Claims Process as Alternative Invasion of the Fund.
(1) Where a claim for restitution does not meet the requirements of subparagraph (i) of paragraph (1) of subdivision (c) of this section, the Commissioner may require that disbursements be made from the Fund to a consumer who has fully cooperated, participated, and completed the Department’s mediation process related to a claim against a home improvement contractor involving an alleged violation of a law, regulation, or rule enforced by the Department; provided, however, that such disbursements shall not be made if the consumer’s initial complaint to the Department was made prior to January 1, 2016 or if the balance of the Fund is less than two million dollars. Whether a home improvement contractor cooperated, participated, or completed the Department’s mediation process shall have no impact on whether the Department considers the consumer to have fully cooperated, participated, and completed the Department’s mediation process.
(2) Disbursements will not be made from the Fund to pay a claim against: a licensee who has furnished a bond, pursuant to the Bond Requirement of 6 RCNY § 2-225; or a home improvement contractor who was not licensed by the Department at the time of the contract.
(3) Disbursements from the Fund pursuant to this subdivision will be made at the discretion of the Commissioner or their designee and shall be limited to no more than ten thousand dollars for all amounts arising out of a single home improvement contract. Prior to disbursement from the Fund, the Commissioner or their designee may require a consumer to submit a claim in a form and format designated by the Commissioner, and provide documentation related to the claim, including but not limited to:
(i) A signed contract between such consumer and the home improvement contractor;
(ii) Evidence of any amounts paid to the home improvement contractor by the consumer or indebtedness incurred by the consumer as a result of a loan being paid by a lender to the home improvement contractor in the consumer’s name;
(iii) Estimates, invoices, or amounts paid to another licensed home improvement contractor to fix or complete the work that was the subject of the contract;
(iv) A sworn and notarized statement detailing the claim, the amount of restitution the consumer is seeking up to ten thousand dollars, and the basis for seeking such amount from the Fund; and
(v) A sworn and notarized statement specifying account credits, refunds or payments made to the consumer by the home improvement contractor or a third-party, including by an insurance company.
(4) The Commissioner or their designee will not direct disbursements to be made from the Fund to pay a claim against a home improvement contractor unless the consumer has provided sufficient documentation to show the claim relates to the home improvement contractor’s failure to duly observe the laws, regulations, and rules governing the conduct of licensed home improvement contractors, including, but not limited to, Subchapter 22 of Chapter 2 of Title 20 the Administrative Code and 6 RCNY Chapter 2, Subchapter V.
(5) The Commissioner or their designee may order that partial payment of an amount related to the claim be made from the Fund.
(6) Nothing contained herein shall be construed to limit the rights and remedies of any party, including the Department, to pursue a cause of action against a home improvement contractor who is a participant in the Fund.
(7) Nothing contained herein shall be construed to create a right of any person to a portion of any of the Fund, except where the Commissioner directs a disbursement be made from the Fund pursuant to the provisions herein.
(8) Nothing contained herein shall be construed to provide for the payment of claims related to personal injury.
(9) Disbursements from the Fund pursuant to this subdivision shall not be considered an award, fine, judgment, arbitration award, or settlement amount for the purpose of paragraph (5) of subdivision (b) of this section.
(e) Accounting. The Commissioner shall, by January 31 of each year, cause an accounting to be made of all of the Fund’s activities during the preceding calendar year.
(Amended City Record 5/20/2015, eff. 6/19/2015; amended City Record 3/3/2023, eff. 4/2/2023; amended City Record 9/20/2023, eff. 10/20/2023)
Each home improvement contractor shall furnish a $20,000 bond to the Department of Consumer Affairs conditioned upon:
(a) compliance with all laws, rules and regulations covering the conduct of home improvement contractors;
(b) payment to the City of New York of any fine, penalty or other obligation imposed by the Department of Consumer Affairs for non-compliance with any law(s), rule(s) or regulation(s) within 30 days of its imposition; and
(c) payment of any final judgment against the home improvement contractor pursuant to the requirements of 6 RCNY § 1-15. The bond shall be either a cash bond or a bond executed by a duly authorized surety company in a form acceptable to the Commissioner.
(a) Every person who applies for a license as a home improvement contractor shall be required to pass an examination prior to being issued a home improvement contractor license in accordance with § 20-387 of the Administrative Code of the City of New York. Such examination shall test the knowledge of the applicant with respect to home improvement business practices, procedures and regulatory requirements and shall be offered regularly by the Department. The fee for taking the examination is $50. The $50 fee includes one subsequent retake in case the applicant fails the first examination.
(b) An applicant who fails a second examination will be required to pay a fee of $50 for two additional opportunities to take the examination.
(c) An applicant for renewal of a license shall not be required to take an examination provided the application is submitted and payment of the license fee is made within 59 days following the expiration of the term of the current license.
(Amended City Record 12/1/2020, eff. 12/31/2020)
Subchapter W: Process Servers
For the purposes of the application of Subchapter 23 of Chapter 2 of Title 20 of the Administrative Code, the following definitions apply, unless the context indicates otherwise.
Bound paginated volume. "Bound paginated volume" means a book or ledger that at the time of purchase contains a specified number of unfolded sheets of paper or other material that are permanently secured to covers by stitching, glue or any other such method that is calculated to make readily discernible the removal or insertion of one or more sheets after the first use of such volume and that that each page in such book or ledger is sequentially numbered starting with the number "1" or contains an indelible label stating the number of pages the volume originally contained.
Chronological. "Chronological" with respect to the notation in a process server record or log means that each notation must be entered sequentially according to the time and date of the activity recorded and without leaving any blank spaces between each entry that would allow for the insertion of any additional notation between any two entries.
Conspicuous service delivery. "Conspicuous service delivery" means, if permissible by law (e.g., CPLR § 308 or RPAPL § 735): affixing the process to the door of either the actual place of business, dwelling place or usual place of abode within the state of the person to be served; or affixing a copy of the notice and petition upon a conspicuous part of the property sought to be recovered or placing a copy under the entrance door of such premises.
Contemporaneous. "Contemporaneous" in relation to entries in records means at or near the time of the event as to which an entry is recorded, or within a reasonable time thereafter.
Corporate service. "Corporate service" means service of process on a domestic or foreign corporation in accordance with the provisions of CPLR § 311 or RPAPL § 735; or governmental subdivision (including the City of New York) in accordance with the provisions of CPLR § 311; or a domestic or foreign limited liability company in accordance with the provisions of CPLR § 311-a; or the state in accordance with the provisions of CPLR § 307.
Department. "Department" means the New York City Department of Consumer and Worker Protection.
Engaged in the business of serving. "Engaged in the business of serving" means the following:
(1) Service of five or more processes within the City of New York in any one calendar year; or
(2) One who assigns, distributes or delivers processes to another for actual service.
Image file. "Image file" in relation to scans of the records kept by process servers or process serving agencies means a file that contains graphic data such that the file is an exact replica of a specific set of data and is saved as a portable data file ("pdf").
Legible. "Legible" with respect to the handwriting in the record kept by process servers and in the scanned or copied images of such record means easily read and discernable in all of its details, and in no way obscured.
Partnership service. "Partnership service" means service of process on persons conducting a business as a partnership in accordance with the provisions of CPLR § 310, or on a domestic or foreign limited partnership in accordance with the provisions of CPLR § 310-a.
Person. "Person" means any individual, firm, company, partnership, corporation, association or other organization.
Personal delivery service. "Personal delivery service" means delivering process within the state to the individual intended to be served process.
Portable media device. "Portable media device" as it pertains to electronic record-keeping means an electronic data storage device used to record and store data, such as a flash memory device, CD-ROM or external hard drive.
Process. "Process" means a summons, notice of petition, order to show cause, subpoena, notice, citation or other legal paper issued under the laws of the State of New York directing an appearance or response to a legal action, legal proceeding or administrative proceeding; provided, however, that if under the laws of the State of New York the mailing of such legal paper is sufficient to effect service, such legal paper will not be process for the purpose of this subchapter.
Process Server. "Process Server" means a person engaged in the business of serving process upon any person, corporation, governmental or political subdivision or agency.
Process Serving Agency. "Process serving agency" means any person, firm, partnership, association or corporation, other than an attorney or a law firm located in this state, or city marshal, who maintains an office, bureau or agency, one purpose of which is to assign or distribute process to individual process servers for actual service in the City of New York.
Scanning. "Scanning" in relation to electronic record-keeping means the process of translating a document into a digital form that can be recognized by a computer. A "scan" with respect to electronic record-keeping is the image file that is created by scanning.
Substituted service. "Substituted service" means delivering process within the state to an individual of suitable age and discretion at the actual place of business, dwelling place or usual place of abode of the individual to be served; or, as applicable, on an individual of suitable age and discretion who resides or is employed at the property sought to be recovered.
VTL service. "VTL service" means delivering process intended to be served on: (1) a non-resident by service on the Secretary of State as permitted by and in accordance with the provisions of Vehicle and Traffic Law § 253; or (2) residents who departs from the state or on residents' executors or administrators who are nonresidents or who depart from the state as permitted and in accordance with the provisions of Vehicle and Traffic Law § 254.
(Amended City Record 9/23/2022, eff. 10/23/2022)
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