Staff: Lacey Clarke, Counsel
Damien Butvick,
Policy Analyst
THE COUNCIL
REPORT
of the Governmental Affairs Division
Robert Newman, Legislative Director
Alix Pustilnik, Deputy Director, Governmental Affairs
COMMITTEE ON CONSUMER AFFAIRS
Hon. Leroy G. Comrie, Chair
May 7, 2008
PROPOSED INT. NO. 633-A: By
the Council Members McMahon, Fidler, James, Nelson,
TITLE: A
Local Law to amend the administrative code of the city of
I. INTRODUCTION
On Wednesday, May 7, 2008, the Committee on Consumer Affairs, chaired by Council Member Leroy G. Comrie, Jr., will conduct its first hearing on Proposed Introductory Bill No. 633-A of 2007 (“Intro. 633-A”), a Local Law to amend the administrative code of the city of New York, in relation to licensing and regulating bridal shops and wedding photographers. Those invited to testify at today’s hearing include representatives from the New York City Department of Consumer Affairs, the wedding apparel industry, professional photographers associations, as well as other interested parties.
II. BACKGROUND
A
ceremony of commitment between two loving individuals is a hugely important day
in many people’s lives, involving much planning, preparation and anticipation. For
several hundred businesses in
In the first three months of 2004, the Office of the New York State Attorney General received 20 complaints about Leah Flanigan Photography, a Brooklyn-based wedding photography company.[4] Complaints received by the Attorney General’s office included, “failure to deliver completed albums, photographs, negatives and online viewing services; poor quality photographs; failure to refund deposits to customers to whom [the company] never delivered services, and failure to respond to repeated calls and e-mails from dissatisfied consumers.”[5] Just last year, thirteen New Yorkers were duped out of thousands of dollars by Michael’s Fine Art Photography, a Staten Island-based photography studio which failed to provide its clients with the pictures taken or a refund on their deposit.[6] Victims also complained of their inability to track down the photographer, Michael Vassallo.[7]
Fraudulent
wedding services are not indigenous to the five boroughs. In 2006, the New York
State Attorney General’s Office received more than 30 complaints about Fluture
Imaging, Inc. in
Intro. 633-A seeks to ensure that consumers are protected from unscrupulous or fraudulent behavior on what many hope will be one of the best days of their life. Closer scrutiny of bridal shops and wedding photographers would benefit both the clients and the businesses alike by raising the level of consumer protection while also eliminating those businesses whose deceptive practices sully the industry’s reputation.
III. Proposed Int. No. 633-A
Proposed
Int. No. 633-A would amend the administrative code of the city of
The following section outlines the requirements an applicant must follow to obtain a license, including providing their name and address, or if a non-resident, the name and address of a registered agent in New York City upon whom process may be served, and submitting a current version of the customer contract as required by section 20-253 of the subchapter. Applicants must submit amended or modified contracts to the Department of Consumer Affairs within sixty days of their amendment/modification. The legislation then specifies that once an applicant is issued a license, it is valid for two years, unless suspended or revoked sooner. The annual fee for a license would be $125.
Section 20-253 would require that every bridal shop or wedding photographer provide the consumer with a contract that, at a minimum, specifies the costs for the product or services, including required deposits or up front fees, any additional fees, including those related to products or services or late fees, and the terms of the shop or photographer’s refund policy. The section also reserves power for the Commissioner of the Department of Consumer Affairs (“the Commissioner”) to require additional disclosures by rule.
The next section delineates the powers and duties of the Commissioner, namely to promulgate rules to implement, to enforce the proposed legislation, and to conduct investigations into the business, business practices and business methods of any bridal shop or wedding photographer, if the Commissioner determines such investigation is warranted. Additionally, the Commissioner would have the power to compel witness attendance and the production of books and records. This section also explains that applicants licensed under this legislation would be liable for the actions of their agents or employees if acting within the scope of their authority; provided, however that the licensee would not be liable for employees or agents’ acts that constitute gross negligence or an intentional tort unless authorized by the licensee.
Section 20-255 would require that licensees maintain records, including customer contracts and receipts for a period of at least three years from the date of the receipt. Furthermore, licensees would be required to post a $5,000 bond to the Department of Consumer Affairs conditioned upon their compliance with all the rules and regulations governing wedding photographers and bridal shop owners. Furthermore, the bond would be used to guarantee payment to the city for any fine imposed due to a violation of any law or rule or payment of any final judgment against the licensee.
Finally, the last section of the proposed legislation specifies that any person found guilty of violating the subchapter would be subject to a fine of between $1,000 and $5,000 for each violation. Additionally, if the person is found guilty of repeated, multiple or persistent violations he or she may also be responsible for the cost of the Department’s investigation.
Proposed Int. No. 633-A
By Council Members McMahon, Fidler, James, Nelson,
A
Local Law to amend the administrative code of the city of
Section 1. Chapter 2 of title 20 of the administrative
code of the city of
SUBCHAPTER 9
Bridal Shops and Wedding Photographers
§ 20-250 Definitions.
§ 20-251 License
required.
§ 20-252
Application; License term; fees.
§ 20-253
Contracts.
§ 20-254
Powers
and duties of the commissioner.
§ 20-255 Records.
§ 20-256
Bond
Requirement.
§ 20-257
Penalties.
§20-250 Definitions. a. “Bridal shop” shall mean any person,
corporation, partnership, limited liability company, or any other entity
engaged in business with the principal purpose of regularly selling, or
offering for sale, items for or relating to a marriage or other civil
commitment ceremony, including, but not limited to, bridal gowns and related
accessories.
b.
“Commissioner” shall mean the commissioner of consumer affairs.
c. “Department”
shall mean the department of consumer affairs.
d. “Wedding photographer” shall mean any person,
corporation, partnership, limited liability company, or any other entity
engaged in business with the purpose of regularly selling, or offering for
sale, the service of recording still images or video of marriage or other civil
commitment ceremonies and related events.
§20-251
License required. It shall be unlawful for any person to engage
in the business of owning or operating a bridal shop or wedding photography
without first having obtained a license in accordance with the provisions of
this subchapter, and without first being in compliance with all other
applicable law, rules and regulations.
§20-252 Application; License
term; fees. a. 1. Each person applying for a bridal shop or wedding
photographer license, or renewal thereof, shall file an application in such
form and detail as the commissioner may prescribe and shall pay the fee
required by subdivision c of this section.
2. In addition
to any additional information required pursuant to rule, the applicant shall
provide the following:
(a) The name and address of the applicant.
(b) Any applicant who is a non-resident of the
city shall provide the name and address of a registered agent within the city
or designate the commissioner as his or her agent upon whom process or other
notification may be served.
(c) A current version of the customer contract
required pursuant to § 20-253 of this subchapter. Any amendment or modification of such
standard contract shall be provided to the commissioner within sixty days
following such amendment or modification.
b. All licenses issued pursuant to this
subchapter shall be valid for two years unless sooner suspended or revoked. The
commissioner shall establish by regulation the expiration date of such
licenses.
c. The annual fee for a license or renewal
thereof shall be one hundred twenty-five dollars.
§20-253 Contracts. Every bridal shop or wedding photographer
shall provide each consumer with a customer contract that shall, at minimum,
provide the following information:
a. The cost for each service or product provided
by the licensee, as well as information relating to any up front fees or
deposits required and outstanding balances left due.
b. Any additional fees associated with additional
products or services.
c. Any fees relating to cancellation or early
termination of the contract.
d. The terms of the refund policy employed by
such bridal shop or wedding photographer.
e. Any additional disclosures required by rule
of the commissioner.
§20-254 Powers and duties of the
commissioner. a. The
commissioner may make and promulgate such rules and regulations as may be
necessary for the proper implementation and enforcement of this subchapter.
b. In addition
to any other powers of the commissioner, not in limitation thereof, the
commissioner shall have the power to enforce the provisions of this subchapter,
to investigate any violation thereof, and to investigate the business, business
practices and business methods of any bridal shop or wedding photographer, if in the opinion of the commissioner, such investigation
is warranted. Each bridal shop or wedding photographer shall, upon the request
of the commissioner, supply such information as may be required concerning its
business practices, methods, or its proposed business practices or methods.
c. For the
purpose of enforcing the provisions of this subchapter, and in conducting
investigations relating to any violation thereof, and for the purpose of
investigating the business or business practices or methods of any bridal shop
or wedding photographer, the commissioner, or the
commissioner's designee, shall have the power to compel the attendance of
witnesses and the production of books and records, in accordance with the
provisions of chapter one of this title.
d. For the
purpose of this subchapter, licensees may be held responsible for statements,
representations, promises or acts of their employees or their agents within the
scope of their authority; provided, however, that licensees shall not be held
responsible for the statements, representations, promises or acts which are
contrary to instructions or which constitute gross negligence or intentional
torts unless specifically authorized by the licensee.
§20-255 Records. Every bridal shop and wedding photographer
shall maintain all records related to its daily operations, including but not
limited to, customer contracts and receipts.
Such records shall be maintained for a period of at least three years
from the date of such receipt and be made available for inspection by the
commissioner at his or her request.
§20-256 Bond Requirement. Each bridal shop and wedding photographer
shall furnish a $5,000 bond to the department conditioned upon:
a. compliance with all laws, rules and
regulations covering the conduct of bridal shops and wedding photographers;
b. payment to the City of New York of any fine,
penalty or other obligation imposed by the department 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 bridal shop and wedding photographer. 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.
§20-257 Penalties. a. Any person who, after notice and hearing
shall be found guilty of violating any provision of this subchapter, shall be
punished in accordance with the provisions of chapter one of this title and
shall be subject to a penalty of not less than one thousand dollars nor more
than five thousand dollars for each violation.
b. In addition to any other penalties, if a person is found to have committed repeated, multiple or persistent violations of any provision of this subchapter, such person may be responsible for the cost of the department's investigation.
§3. This local law shall take effect one hundred and twenty days after it shall have been enacted into law, except that, prior to such effective date, the commissioner of consumer affairs may promulgate rules or take any other action necessary for implementation of this local law.
LCC
LS#
3303
4/23/08