senate Bill S7595A

Restricts pay-per-call prize schemes

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 06 / Jun / 2012
    • REFERRED TO CONSUMER PROTECTION
  • 18 / Jun / 2012
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 18 / Jun / 2012
    • AMEND AND RECOMMIT TO RULES
  • 18 / Jun / 2012
    • PRINT NUMBER 7595A
  • 19 / Jun / 2012
    • ORDERED TO THIRD READING CAL.1319
  • 21 / Jun / 2012
    • SUBSTITUTED BY A4365A

Summary

Prohibits pay-per-call prize schemes from charging more for the call than that charged by a telephone corporation regulated by the appropriate regulatory commission for the same call.

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Bill Details

See Assembly Version of this Bill:
A4365A
Versions:
S7595
S7595A
Legislative Cycle:
2011-2012
Law Section:
General Business Law
Laws Affected:
Amd ยง369-ee, Gen Bus L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S8005, A3460
2007-2008: A5252, A5252

Sponsor Memo

BILL NUMBER:S7595A

TITLE OF BILL:
An act
to amend the general business law, in relation to restricting
pay-per-call services

PURPOSE:
To prohibit the practice of holding a contest in which the
pay-per-call service, which is needed to claim the prize, charges a
higher fee for the transmission of the call as assessed by a
telephone corporation regulated by the public service commission.

SUMMARY OF PROVISIONS:
Amends Section 369-ee of the General Business
law bay adding a new subdivision 2-a to make it unlawful for any
person, firm or corporation to offer a consumer a prize, if in order
to claim the prize, the consumer must call a pay-per-call service
where the charge for such service is greater than the charge for the
transmission of the call as assessed by a telephone corporation
regulated by the public service commission.

JUSTIFICATION:
Every year, thousands of misleading phone calls are automatically
placed to consumers, by a person, firm, or corporation leading them
to believe, they had won a contest. In order to claim their prize,
which could be anything from "new watch" to a "35mm camera", they are
told that they have to place a return phone call to a given number.
In most cases, the cost of the return phone call costs up to $9.95 a
minute resulting in an excessive phone bill, which ends up being more
expensive than the prize itself.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect 30 days after the date on
which it shall have become law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7595--A

                            I N  S E N A T E

                              June 6, 2012
                               ___________

Introduced by Sen. FUSCHILLO -- read twice and ordered printed, and when
  printed  to  be  committed  to the Committee on Consumer Protection --
  committee discharged and said bill committed to the Committee on Rules
  -- committee discharged, bill amended, ordered  reprinted  as  amended
  and recommitted to said committee

AN  ACT  to  amend  the general business law, in relation to restricting
  pay-per-call services

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  369-ee of the general business law is amended by
adding a new subdivision 2-a to read as follows:
  2-A. PRIZE CLAIMS BY PAY-PER-CALL SERVICES.  IT SHALL BE UNLAWFUL  FOR
ANY PERSON, FIRM OR CORPORATION TO OFFER A CONSUMER A PRIZE, IF IN ORDER
TO  CLAIM THE PRIZE, THE CONSUMER MUST CALL A PAY-PER-CALL SERVICE WHERE
THE CHARGE FOR SUCH PAY-PER-CALL SERVICE IS  GREATER  THAN  THE  SERVICE
CHARGE  AUTHORIZED  BY THE APPROPRIATE REGULATORY COMMISSION. AS USED IN
THIS SUBDIVISION "PAY-PER-CALL SERVICE" MEANS ANY TELEPHONE SERVICE  FOR
WHICH THE CALLING PARTY IS ASSESSED, BY VIRTUE OF COMPLETING THE CALL, A
CHARGE FOR WHICH THE CALLER PAYS A PER-CALL OR PER-TIME CHARGE.
  S  2.  This  act shall take effect on the thirtieth day after it shall
have become a law.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08552-02-2

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