Bill Text: NY S01832 | 2011-2012 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Prohibits the imposition of any charge or fee on the telephone bill of a consumer when such fee or charge is imposed by a third party, unless the consumer explicitly agrees to the nature and amount of such fee or charge; makes the unauthorized imposition of such a fee void and unenforceable; directs the public service commission to enforce such provisions.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced - Dead) 2012-01-04 - REFERRED TO ENERGY AND TELECOMMUNICATIONS [S01832 Detail]

Download: New_York-2011-S01832-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1832
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                   January 13, 2011
                                      ___________
       Introduced  by Sen. FLANAGAN -- read twice and ordered printed, and when
         printed to be committed to the Committee on  Energy  and  Telecommuni-
         cations
       AN  ACT  to  amend  the  public  service  law,  in  relation to consumer
         protections against cramming
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The opening paragraph of section 92-d of the public service
    2  law,  as separately amended by chapters 546 and 547 of the laws of 2000,
    3  is amended to read as follows:
    4    Each local exchange telephone company shall inform  its  customers  of
    5  the  provisions  of SECTION NINETY-TWO-G OF THIS ARTICLE, sections three
    6  hundred ninety-nine-p  [and],  three  hundred  ninety-nine-z  and  three
    7  hundred ninety-nine-pp of the general business law, and article ten-B of
    8  the  personal  property  law, as such provisions relate to the rights of
    9  consumers with respect to CRAMMING, telemarketers, sellers, the no tele-
   10  marketing sales call statewide registry and automatic dialing-announcing
   11  devices, by means of:
   12    S 2. The public service law is amended by adding a new section 92-g to
   13  read as follows:
   14    S 92-G.  CRAMMING PROHIBITED. 1. FOR THE  PURPOSES  OF  THIS  SECTION,
   15  "CRAMMING"  MEANS THE INCLUSION AND IMPOSITION OF CHARGES ON THE INVOICE
   16  OR BILL OF A CUSTOMER FROM A TELEPHONE CORPORATION AT THE REQUEST  OF  A
   17  THIRD  PARTY  OR  BILLING AGGREGATOR THAT (A) WERE NOT AUTHORIZED BY THE
   18  CUSTOMER, OR (B) IF AUTHORIZED,  WERE  OBTAINED  THROUGH  MISLEADING  OR
   19  DECEPTIVE MEANS.
   20    2. A CUSTOMER SHALL NOT BE LIABLE FOR CHARGES APPEARING ON THE INVOICE
   21  OR  BILL  OF A TELEPHONE CORPORATION THAT ARE THE RESULT OF CRAMMING. NO
   22  CHARGES FOR ANY PRODUCTS OR SERVICES, OTHER THAN THOSE PROVIDED  BY  THE
   23  TELEPHONE CORPORATION, ITS AFFILIATES, A THIRD PARTY VIDEO PROVIDER WITH
   24  WHOM  A  TELEPHONE CORPORATION OR ITS AFFILIATE JOINTLY MARKET SERVICES,
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04127-01-1
       S. 1832                             2
    1  OR OTHERWISE PERMITTED BY LAW, SHALL BE INCLUDED ON ANY BILL OR  INVOICE
    2  OF  A  CUSTOMER,  UNLESS  THE THIRD PARTY REQUESTING THE PAYMENT OF SUCH
    3  CHARGES RETAINS AND PROVIDES UPON REQUEST VALID PROOF THAT:
    4    A.  THE CUSTOMER WAS PROVIDED WITH CLEAR AND CONSPICUOUS DISCLOSURE OF
    5  ALL MATERIAL TERMS AND  CONDITIONS  OF  THE  PRODUCT  OR  SERVICE  BEING
    6  OFFERED,  INCLUDING BUT NOT LIMITED TO ALL INITIAL AND RECURRING CHARGES
    7  AND THE FACT THAT SUCH CHARGES SHALL APPEAR ON THE CUSTOMER'S  TELEPHONE
    8  BILL;
    9    B.  AFTER  RECEIVING  CLEAR  AND CONSPICUOUS DISCLOSURE AS PROVIDED IN
   10  PARAGRAPH A OF THIS SUBDIVISION, THE CUSTOMER  EXPLICITLY  CONSENTED  TO
   11  THE NATURE AND AMOUNT OF SUCH CHARGES; AND
   12    C. THE THIRD PARTY OFFERING THE PRODUCT OR SERVICE OR AN AGENT OF SUCH
   13  THIRD  PARTY PROVIDED THE CUSTOMER WITH A TOLL-FREE TELEPHONE NUMBER THE
   14  CUSTOMER MAY CALL AND AN ADDRESS TO WHICH  THE  CUSTOMER  MAY  WRITE  TO
   15  RESOLVE ANY BILLING DISPUTE.
   16    3.  ANY CHARGES FOR THIRD PARTY PRODUCTS OR SERVICES THAT ARE INCLUDED
   17  ON A BILL OR INVOICE BY A TELEPHONE CORPORATION WITHOUT THE  CONSENT  OF
   18  THE CUSTOMER HAVING BEEN OBTAINED AS PROVIDED IN SUBDIVISION TWO OF THIS
   19  SECTION  SHALL  BE VOID AND UNENFORCEABLE, AND SHALL BE REMOVED FROM THE
   20  BILL OR INVOICE UPON NOTICE FROM SUCH CUSTOMER.
   21    4. THE COMMISSION SHALL  SUPERVISE  AND  ENSURE  COMPLIANCE  WITH  THE
   22  PROVISIONS OF THIS SECTION, AND MAY PROMULGATE ANY RULES AND REGULATIONS
   23  IT DEEMS NECESSARY OR DESIRABLE TO ENSURE SUCH COMPLIANCE, INCLUDING BUT
   24  NOT  LIMITED TO ANY ADDITIONAL REQUIREMENTS FOR VERIFICATION OF CUSTOMER
   25  ORDERS AND ANY ADDITIONAL STANDARDS THAT THIRD PARTIES  OR  AGENTS  MUST
   26  MEET TO BE AUTHORIZED TO RECEIVE PAYMENT THROUGH THE INCLUSION OF CHARG-
   27  ES  ON  BILLS  OR  INVOICES  OF TELEPHONE CORPORATIONS. ANY FAILURE BY A
   28  TELEPHONE CORPORATION TO COMPLY WITH THE PROVISIONS OF THIS SECTION  MAY
   29  BE  REDRESSED  AS PROVIDED IN SUBDIVISION THREE OF SECTION NINETY-SIX OF
   30  THIS ARTICLE OR AS OTHERWISE AUTHORIZED BY LAW.
   31    S 3. This act shall take effect on the one hundred eightieth day after
   32  it shall have become a law.