New York Consolidated Laws, General Business Law - GBS § 582. Unlawful advertisement

It shall be unlawful for any person to advertise or hold out by any means that the sale of any goods, wares or merchandise to the public is a “closing out sale,” “a sale of goods damaged by fire, smoke or water,” or a “defunct business sale,” unless a license is first obtained to conduct such a sale from the licensing authority of the appropriate city, town or village in which such sale is to be held.