New rebate law now in effect

NEW YORK — A new state law which went into effect Jan. 1 provides important information about rebate offers made by manufacturers and retailers. Effective Jan. 1, the law requires any entity that offers rebates to conspicuously disclose to consumers: If the rebate will be issued in a form other than cash or a check, including but not limited to credit, credit towards a future purchase, gift certificate, gift card, general use prepaid card or any other form of compensation, and If any additional fees related to the exercise or the non-exercise of the rebate may apply. The measure also requires any retailer advertising a rebate to clearly disclose if the rebate will be issued to the consumer in a form other than cash or a check, including but not limited to credit, credit towards a future purchase, gift certificate, gift card, general use prepaid card or any other form of compensation. In recent years, rebate offers have become an increasingly popular method for businesses to attract customers, who appreciate the opportunity to save money on items they wish to purchase, and tend to respond favorably when rebates are offered on such products. However, manufacturers and retailers, which offer rebates, do not always make the terms of the rebate clear to consumers at the point of sale. While consumers tend to assume that a rebate will be in the form of a check, some rebates are actually provided in the form of a credit toward the purchase of another product. If the rebate is provided in the form of a pre-paid card to make the additional purchase, consumers can face undisclosed fees for activation, checking of balances, and account maintenance for periods of inactivity. For more information about rebates offers and other consumer topics, visit www.nysconsumer.gov or call 800-697-1220.