S 5419: Prohibits the use of automated purchasing software to buy large quantities of goods for the purpose of retail resale of such goods.

  
  STATE OF NEW YORK ________________________________________________________________________ 5419 2025-2026 Regular Sessions  IN SENATE February 21, 2025 ___________ Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Internet and Technology AN ACT to amend the general business law and the executive law, in relation to automated purchasing software The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The general business law is amended by adding a new section 2 390-f to read as follows: 3 § 390-f. Automated purchasing software; prohibited. 1. For the 4 purposes of this section, the following terms shall have the following 5 meanings: 6 (a) "Automated purchasing software" shall mean any machine, device, 7 computer program or computer software that, on its own or with human 8 assistance, bypasses security measures or access control systems on a 9 retail goods purchasing platform, or other controls or measures on a 10 retail goods purchasing platform, that assist in implementing a limit on 11 the number of any specific item of goods that can be purchased, to 12 purchase any specific item of goods. 13 (b) "Retail goods purchasing platform" shall mean a retail goods 14 purchasing website, application, phone system, or other technology plat- 15 form used to sell goods. 16 2. (a) It shall be unlawful for any person, firm, corporation or other 17 entity to utilize automated purchasing software to purchase goods. 18 (b) It shall be unlawful for any person, firm, corporation or other 19 entity to knowingly resell or offer to resell any item of goods that 20 such person, firm, corporation or other entity knows was obtained using 21 automated purchasing software. 22 3. Any person, firm, corporation or other entity who knowingly 23 utilizes automated purchasing software in order to purchase any item of 24 goods shall be subject to a civil penalty in an amount of no less than 25 five hundred dollars and no more than one thousand five hundred dollars EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09508-01-5 
 S. 5419 2 1 for each such violation and shall forfeit all profits made from the sale 2 of any such unlawfully obtained goods. 3 4. Any person, firm, corporation or other entity who intentionally 4 maintains any interest in or maintains any control of the operation of 5 automated purchasing software to purchase goods shall be subject to a 6 civil penalty in an amount of no less than seven hundred fifty dollars 7 and no more than one thousand five hundred dollars for each such 8 violation and shall forfeit all profits made from the sale of any such 9 unlawfully obtained goods. 10 5. Any person, firm, corporation or other entity who knowingly sells 11 or offers to sell any item of goods that such person, firm, corporation 12 or other entity knows was obtained using automated purchasing software 13 shall be subject to a civil penalty in an amount of no less than five 14 hundred dollars and no more than one thousand five hundred dollars for 15 each such violation and shall forfeit all profits made from the sale of 16 any such unlawfully obtained goods. 17 6. Any person who is subject to a civil penalty under this section and 18 has been assessed a penalty under this section in the previous three 19 years shall be guilty of a violation and may be fined no less than one 20 thousand dollars and no more than five thousand dollars for each such 21 violation and shall forfeit all profits from the sale of any such unlaw- 22 fully obtained goods. In addition, a person convicted of a violation 23 under this section may be required to forfeit any and all equipment used 24 in the unlawful purchasing of goods. 25 7. The consumer protection division of the department of state shall 26 receive, compile and forward to the attorney general complaints of 27 violations of the provisions of this section. 28 8. The attorney general shall have jurisdiction to enforce the 29 provisions of this section. 30 9. Any aggrieved party that has been injured by wrongful conduct 31 prescribed by this section may bring an action to recover all actual 32 damages suffered as a result of any of such wrongful conduct. The court 33 in its discretion may award damages up to three times the amount of 34 actual damages. The court may enjoin the respondent from any and all 35 activity prohibited under this section. The court may also award reason- 36 able attorney's fees and costs. 37 § 2. Subdivision 3 of section 94-a of the executive law is amended by 38 adding a new paragraph 13-a to read as follows: 39 (13-a) receive, compile and forward to the attorney general complaints 40 of violations of section three hundred ninety-f of the general business 41 law prohibiting the use of automated purchasing software; 42 § 3. This act shall take effect on the ninetieth day after it shall 43 have become a law.