NY’s New False Advertising Amendment Puts Businesses at Risk

On January 20, 2026, NYS plugged a real problem with false advertising throughout the State by amending General Business Law § 350-a, by A4575, to add new subsection (2), which now provides:

Any written or electronic communication which simulates a document authorized, issued or approved by any court, official, agency of this state or a political subdivision thereof, or of another state or official governmental entity, foreign or domestic, or which creates a false impression as to such document's source, authorization or approval, shall be considered false advertising unless the person, firm, corporation or association, or agent or employee thereof, has received express permission from such court, official, or agency for the use of such document. This subdivision shall be construed to prohibit any false representation or implication, written or verbal, that a person, firm, corporation or association, or agent or employee thereof, selling a commodity or service is vouched for, approved of, bonded by, operating with or on behalf of, or otherwise affiliated with this state or a political subdivision thereof, or of another state or official governmental entity, foreign or domestic, unless such person, firm, corporation or association, or agent or employee thereof, has received express permission from such state or political subdivision for such affiliation.

Businesses are now on notice to stop stating or implying that they have anything to do with being approved by government, unless they receive permission to do so. If you've ever gotten something about obtaining your deed for your house to avoid deed theft, you know exactly what this is all about. So often citizens are manipulated by companies who appear official when they are not. Under the statute, any person injured by such false advertising may bring an action to enjoin the unlawful act or practice and recover damages. Specifically, the statute (GBL § 350-d) provides for recovery of actual damages or $5,000, whichever is greater. Additionally, courts have discretion to increase the award of damages to an amount not exceeding three times the actual damages, up to $15,000, if the defendant is found to have willfully or knowingly violated the statute. Reasonable attorney's fees may also be awarded to a prevailing plaintiff. To make matters worse for businesses who falsely advertise, class actions for actual damages under GBL § 350-a are permissible, provided the plaintiffs waive claims for minimum or punitive damages. 

Businesses better audit their advertising today.  Facing a false-advertising class action? Get a defense team that actually knows GBL § 350-a. Contact Lieb at Law.

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NEW LAW FOR NYS BUSINESSES: Adapting to New Credit Card Surcharge Regulations

Effective February 11, 2024, a new amendment to General Business Law Section 518 introduces significant changes for businesses regarding credit card surcharges. The key takeaway is that businesses can no longer add credit card processing fees as a separate charge for non-cash payments, even if disclosed. Instead, any surcharge must be included in the total grossed-up price displayed to customers prior to checkout.

Businesses have two main compliant options:

1. Two-Tier Pricing: Display two prices for each item with one including the surcharge for credit card payments and another for cash, checks, or debit payments.
2. Inclusive Pricing: Incorporate the credit card fee into all prices and offer a discount for non-credit card payments.

This change offers businesses an opportunity to demonstrate their commitment to fairness and transparency, potentially enhancing customer loyalty. Ensuring clear communication about pricing and payment methods is key to navigating these new requirements successfully.

Violations: If a business violates the amended General Business Law Section 518, there are significant consequences. Non-compliance can result in civil penalties of up to $500 for each violation. In more severe cases, a business could face criminal charges, leading to fines, imprisonment for up to one year, or both. It's crucial for businesses to adhere to these regulations to avoid legal repercussions and maintain a positive relationship with their customers.

To read Section 518 of New York State's General Business Law click here. To review New York State's Credit Card Compliance Guidance click here. New York State has also released an educational video which you can watch here. 

Navigating the New Federal and NYS Reporting Mandates for Corporate Entities with Lieb at Law | Beneficial Ownership Information Filings

There is a NEW reporting requirement for business owners in 2024. 

Beneficial Ownership Information Filings

The landscape of corporate transparency in the United States has undergone significant changes with the introduction of the federal Corporate Transparency Act (CTA) in 2021, which will go hand-in-hand with specific reporting requirements set forth by New York State (NYS).  Lieb at Law is committed to guiding your business through both these mandates, ensuring full compliance without the hassle.

Federal Reporting Requirements: The Corporate Transparency Act

The CTA, a bipartisan effort aimed at combating financial crimes, mandates certain businesses to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).

Who Must Comply?

• Domestic Reporting Companies: Corporations, LLCs, or similar entities formed by filing with a secretary of state or comparable office within any U.S. state or tribal jurisdiction.
• Foreign Reporting Companies: Entities formed under foreign laws but registered to do business in the U.S. through a similar filing process.

Key Deadlines:

• Pre-2024 Entities: Companies established or registered before January 1, 2024, must submit their initial report by January 1, 2025.
• Entities Formed or Registered in 2024: Must file within 90 days of registration or official notification.
• Post-2024 Entities: Have 30 days from notification to file their initial report.

New York State Reporting Requirements

In addition to federal mandates, NYS has set its own reporting requirements for corporate entities to further enhance transparency and combat illicit financial activities within the state. NYS's reporting requirements go into effect at the end of 2024. To learn more click here to read our blog post. 

Who Is Affected?

• All entities required to comply with the federal CTA. 
• In December of 2024, entities operating within NYS must also adhere to state-specific reporting requirements.

State-Specific Mandates Will Include:

• Additional details on beneficial ownership might be required, aligning with or expanding upon federal mandates.
• Reporting frequencies, deadlines, and procedures specific to NYS, which may differ from federal requirements.

How Lieb at Law Can Assist:

The intricacies of adhering to both federal and state reporting mandates can be daunting. The team at Lieb at Law understands the nuances of both federal and NYS mandates. We will help your business submit reports accurately to both FinCEN and NYS authorities. Reach out today to secure your peace of mind in this new era of corporate transparency. Click here for more information or email info@liebatlaw.com

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