The war on drip pricing continues. New York’s new credit surcharge law is now in effect requiring businesses to provide important pricing disclosures. The law amends and clarifies New York’s existing credit card surcharge law, General Business Law Section 518. Key requirements are outlined below.
New law takes effect just prior to the holidays
On December 10, 2023, a new law takes effect in New York that will mandate a grace period that will allow consumers three months to use up their credit card rewards points prior to a change in their loyalty program. New York General Business Law § 520-e was enacted in 2021 with a delayed effective date. The new law provides that before a credit card rewards program can be modified, cancelled or terminated, the consumer must be provided with at least 90 days’ notice of the forthcoming change and therefore an equally long window of opportunity to “redeem, exchange, or otherwise use” the previously accumulated points. The notice must go out no later than 45 days after the change has been decided upon by the credit card issuer.
McDonald’s and Wendy’s defeat lawsuit over burger depictions
Recently, we blogged about a lawsuit that accused Arby’s of false advertising by serving roast beef and brisket sandwiches that contained significantly less meat than what was depicted in advertisements. Arby’s may be breathing a sigh of relief right now because McDonald’s and Wendy’s have just prevailed in a similar lawsuit that targeted the depictions of their burgers.
Coffee seller’s motion to dismiss class action denied by court
In a recent legal battle, Starbucks became the center of a lawsuit filed by plaintiffs who are alleging deceptive advertising practices related to beverage and food items sold in their stores. The case, combined with the court’s recent ruling denying Starbuck’s motion to dismiss, raises questions about the transparency of product labeling and the expectations of consumers when it comes to the accuracy of product names.