N.Y. Gen. Bus. Law § 582

§ 582. Unlawful advertisement. It shall be unlawful for any person to\nadvertise or hold out by any means that the sale of any goods, wares or\nmerchandise to the public is a "closing out sale," "a sale of goods\ndamaged by fire, smoke or water," or a "defunct business sale," unless a\nlicense is first obtained to conduct such a sale from the licensing\nauthority of the appropriate city, town or village in which such sale is\nto be held.\n