1. For purposes of this section:

1. (a) The term "veterans' benefits matter" means the preparation, presentation, or prosecution of any claim affecting any person who has filed or expressed an intent to file a claim for any benefit, program, service, commodity, function, or status, entitlement which is determined under the laws and regulations administered by the United States department of veterans affairs or the New York state division of veterans' affairs pertaining to veterans, their dependents, their survivors, and any other party eligible for such benefits.
2. (b) The term "compensation" means money, property, or anything else of value.
3. (c) The term "entity" includes, but is not limited to, any natural person, corporation, trust, partnership, alliance, or unincorporated association.

3.

1. (a) No entity shall advise or assist for compensation any party with any veterans' benefits matter without clearly providing, at the outset of this business relationship, the following disclosure, both orally and in writing: "this business is not sponsored by, or affiliated with, the United States department of veterans affairs, the New York state division of veterans' affairs, or any other congressionally chartered veterans service organization. Other organizations, including but not limited to the New York state division of veterans' affairs, your local county veterans service agency, and other congressionally chartered veterans service organizations, may be able to provide you with this service free of charge. Products or services offered by this business are not necessarily endorsed by any of these organizations. You may qualify for other veterans' benefits beyond the benefits for which you are receiving services here." The written disclosure must appear in at least twelve-point font and must appear in a readily noticeable and identifiable place in the entity's agreement with the party seeking services. The party must verbally acknowledge understanding of the oral disclosure and must provide his or her signature to represent understanding of these provisions on the document in which the written disclosure appears. The entity offering services must retain a copy of the written disclosure while providing veterans' benefits services for compensation to the party and for at least one year after the date on which this service relationship terminates.
2. (b) No entity shall advertise for-compensation services in veterans benefits matters without including the following disclosure: "this business is not sponsored by, or affiliated with, the United States department of veterans affairs, the New York state division of veterans' affairs, or any other congressionally chartered veterans service organization. Other organizations, including but not limited to the New York state division of veterans' affairs, your local county veterans service agency, and other congressionally chartered veterans service organizations, may be able to provide you with these services free of charge. Products or services offered by this business are not necessarily endorsed by any of these organizations. You may qualify for other veterans' benefits beyond the services that this business offers." If the advertisement is printed, including but not limited to advertisements visible to internet users, the disclosure must appear in a readily visible place on the advertisement. If the advertisement is verbal, the spoken statement of the disclosure must be clear and intelligible.

(b) If an entity's violation of this section concerns a party who is sixty-five years of age or older, said entity may be liable for supplemental civil penalties as established within, and subject of the terms of, section three hundred forty-nine-c of this article. * (c) Notwithstanding any provision of section three hundred forty-nine of this article to the contrary:

1. (i) An individual who is harmed by an entity as a result of an entity's violation of this section may bring an action in their own name against an entity to enjoin such unlawful act or practice, an action to recover their actual damages or twenty-five hundred dollars, whichever is greater, or both such actions, in addition to any other remedy available in law or equity. The court may award costs and reasonable attorney's fees to a prevailing plaintiff.
2. (ii) Whenever the court shall determine that a violation of this section has occurred, the court may impose a civil penalty of not more than ten thousand dollars for each violation.
3. (iii) Any violation of paragraph (a) of subdivision two of this section shall be a class A misdemeanor, and upon conviction thereof, shall be punishable by a fine of not more than one thousand dollars, or by imprisonment for not more than one year, or by both such fine and imprisonment; provided however, a second or subsequent offense shall be punishable by a fine of not more than three thousand dollars or by imprisonment for not more than one year, or by both such fine and imprisonment. In addition, the court may order as part of the sentence imposed restitution or reparation to the victim of the crime pursuant to section 60.27 of the penal law. The attorney general shall have the power to prosecute any violation of paragraph (a) of subdivision two of this section.
4. (iv) The civil and criminal remedies set forth in this section shall not preclude any individual or entity or government authority from seeking relief under any other statutory or common law right to relief. * NB Effective May 4, 2026 * 5. If any clause, sentence, paragraph or part of this section or the application thereof shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph or part thereof directly involved in the controversy in which such judgment shall have been rendered. * NB Effective until May 4, 2026 * 5. (a) In addition to any liability for damages or a civil penalty imposed pursuant to sections three hundred forty-nine, three hundred fifty-c and three hundred fifty-d of this chapter, regarding deceptive practices and false advertising, and subdivision twelve of section sixty-three of the executive law, regarding proceedings by the attorney general for equitable relief against fraudulent or illegal consumer fraud, a person or entity who engages in any conduct prohibited by such provisions of law, and whose conduct is perpetrated against one or more persons seeking or using services in connection with a veterans' benefits matter, may be liable for an additional civil penalty not to exceed ten thousand dollars, in accordance with paragraph (b) of this subdivision.

5. (b) In determining whether to impose a supplemental civil penalty pursuant to paragraph (a) of this subdivision, and the amount of any such penalty, the court shall consider, in addition to other appropriate factors as determined by the court, the extent to which the following factors are present:

   1. (i) whether the defendant knew that such defendant's conduct was directed to one or more persons seeking or using services in connection with a veteran's benefits matter or whether such defendant knowingly acted with disregard for the rights of a person seeking or using services in connection with a veterans' benefits matter;

   2. (ii) whether the defendant's conduct:

      1. (1) caused a person seeking or using services to suffer loss or encumbrance of a primary residence, loss of employment or source of income, substantial loss of property or assets essential to the health or welfare of the person seeking or using services in connection with a veteran's benefits matter; or
      2. (2) whether one or more persons seeking or using services in connection with a veteran's benefits matter were substantially more vulnerable to such defendant's conduct because of disability, impaired understanding, or any other perceived disadvantage, and actually suffered physical or economic damage resulting from such defendant's conduct.
6. (c) Restitution ordered pursuant to the provisions of law listed in paragraph (a) of this subdivision or pursuant to any other section of law shall be given priority over the imposition of civil penalties ordered by the court under this subdivision. * NB Effective May 4, 2026 * 6. If any clause, sentence, paragraph or part of this section or the application thereof shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph or part thereof directly involved in the controversy in which such judgment shall have been rendered. * NB Effective May 4, 2026