New York
New York enforces a kept deposit when it bears a reasonable proportion to what the shop probably loses from an empty appointment, a loss that is hard to measure exactly, and the client carries the burden of proving it is a penalty. A sum grossly out of proportion to that loss, such as the full price of a large piece for a missed first session, invites the penalty finding, and then the shop recovers only the damages it can prove. In New York City, the City’s refund-policy rule names sellers of services, so a shop there should treat the posting duty as its own.
Does a non-refundable deposit hold up in New York?
New York has no statute on deposits for a personal service; the Court of Appeals supplies the rule. In Truck Rent-A-Center, Inc. v. Puritan Farms 2nd, Inc. (1977), a commercial lease, it held that a sum set in advance is enforced when it bears a reasonable proportion to the probable loss and the actual loss is impossible or hard to estimate precisely, and is a penalty when plainly or grossly disproportionate to the probable loss. In JMD Holding Corp. v. Congress Financial Corp. (2005), it put the burden on the party seeking to avoid the clause to show it is a penalty, and when a clause fails, recovery is limited to the actual damages proven.
“A contractual provision fixing damages in the event of breach will be sustained if the amount liquidated bears a reasonable proportion to the probable loss and the amount of actual loss is incapable or difficult of precise estimation.” Truck Rent-A-Center, Inc. v. Puritan Farms 2nd, Inc., 41 N.Y.2d 420 (1977) · JMD Holding Corp. v. Congress Financial Corp., 4 N.Y.3d 373 (2005)
Showing your refund policy
General Business Law § 218-a has every retail store and online retailer conspicuously post its refund policy for the goods it sells, saying whether it gives refunds, on what conditions and with what fees; an online retailer shows it near the item or before asking for billing information. A store that fails owes a cash refund or credit for up to 30 days on unused merchandise. The statute is written for goods, and a tattoo appointment is not goods, wares or merchandise.
“Every retail mercantile establishment and online retailer shall conspicuously post ... its refund policy as to all goods, wares or merchandise offered to the public for sale.” N.Y. Gen. Bus. Law § 218-a
Body-art rules and money
Nothing about deposits, refunds, prices, receipts or payment records in the sections of Public Health Law article 4-A read in full (§§ 460, 461, 464 and 465) or in the New York City Health Code’s chapter 22, the operative tattoo rule in the city. The only money in either is permit and license fees, such as the city’s $50 temporary license fee.
Read: N.Y. Public Health Law art. 4-A · New York City Health Code, ch. 22
What reaches your deposit page
New York City’s refund-policy rule names sellers of services
New York City’s rule, 6 RCNY § 5-37, says sellers of consumer goods and services must comply with all of General Business Law § 218-a, which has a seller conspicuously post its refund policy and, online, show it near the item or before asking for billing information. The City’s 311 page says a business that sells consumer goods and services posts a sign with its refund policy near the register. So a shop in the city should treat the posting duty as its own: the policy near the register as well as on the deposit page.
“Businesses in the City that sell consumer goods and services must post a sign with their refund policy near the register where customers can easily read it.” NYC311, Refund Policy Rules
- Your whole deposit policy is on the pay screen above a box your client ticks, and the Pay button stays off until they tick it. The deposit keeps the exact words and the moment they agreed.
A practice that materially interferes with understanding a term can be abusive
General Business Law § 349, in its current text (the Senate’s revision of April 3, 2026), declares an abusive act or practice unlawful alongside an unfair or deceptive one, in any business or in furnishing any service. A practice is abusive when it materially interferes with a person’s ability to understand a term or condition, so a deposit policy written so a client cannot tell when the deposit is kept is what that sentence describes. The Attorney General enforces all 3; a client can sue only over a deceptive practice, for actual damages or $50, whichever is greater.
“it materially interferes with the ability of a person to understand a term or condition of a product or service” N.Y. Gen. Bus. Law § 349
- Your whole deposit policy is on the pay screen above a box your client ticks, and the Pay button stays off until they tick it. The deposit keeps the exact words and the moment they agreed.
- The default deposit policy is 3 short sentences in plain words, and you can write your own. Whatever it says, your client sees all of it before paying.
This page summarizes public law in plain language, with the source each point comes from, read at the source on 2026-09-23. It is not legal advice.