Thank you, the cite was sufficient, but you quoted the wrong section. The section that answers the OP's question is paragraph e:
e. Price accuracy. No retail store shall charge a retail price for any stock keeping item, whether or not exempt under subdivision c of this section, which exceeds the lower of any item, shelf, sale or advertised price of such stock keeping item.
This section is exactly what the OP was asking for. So the correct cite for the OP is N.Y. ADC. LAW § 20-708(e).
http://codes.lp.findlaw.com/nycode/ADC/20/5/2/20-708.1
This section also shows your original answer was inaccurate. You stated: "they do have to honor the price on their own shelf price tags". In fact, they have to honor the lowest price marked, whether on the shelf, on the item or in an ad. Which is the answer I gave. My point here, is that it's very nice that you want to help, and all help is welcome. However, we take pride in the quality of the advice we gave here and your responses in this and other threads have been sub-standard. Please don't think I'm trying to discourage you from answering questions. I'm just asking that you be more careful when posting responses in the future.