Assembly Bill A10464B

2009-2010 Legislative Session

Prohibits the imposition of any charge or fee on the telephone bill of a consumer when such fee is imposed by a third party, without the consent of the consumer

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Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 22, 2010	print number 10464b
Jun 22, 2010	amend and recommit to ways and means
Jun 08, 2010	reported referred to ways and means
May 25, 2010	print number 10464a
May 25, 2010	amend and recommit to consumer affairs and protection
Mar 26, 2010	referred to consumer affairs and protection

Bill Amendments

Original

B (Active)

2009-A10464 - Details

See Senate Version of this Bill:: S7082
Current Committee:: Assembly Ways And Means
Law Section:: Public Service Law
Laws Affected:: Amd §92-d, add §92-g, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A3224, A10256, S1832
2013-2014: A1795
2015-2016: A392
2017-2018: A2426
2019-2020: A9624

2009-A10464 - Summary

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.

2009-A10464 - Sponsor Memo

                                BILL NUMBER:A10464

TITLE  OF BILL:   An act to amend the public service law, in relation to
consumer protections against cramming

PURPOSE OR GENERAL IDEA OF BILL:  This bill will prohibit  the  practice
of "cramming" - that is, the unauthorized addition of fees or charges on
a telephone bill by a third party without the consent of the consumer,

SUMMARY  OF SPECIFIC PROVISIONS:  Bill §1 adds a new §92-g to the Public
Service Law (PSL) which prohibits telephone corporations from  including
any  cramming  charge  in a customer's bill or invoice, unless the party
imposing the charge provides proof to the telephone corporation that the
consumer explicitly agreed to the  nature  and  amount  of  the  charge.
"Cramming charges" are defined as any unauthorized, misleading or decep-
tive  charges  and  fees that are levied by a third party which seeks to
include them on a telephone bill. Cramming charges imposed  without  the
consumer's  consent  are  declared void and unenforceable, and the tele-
phone corporation is required  to  remove  them  upon  notice  from  the
consumer that such charges were not authorized.

Bill  §2  adds  a  new subdivision 5 to PSL §94 that provides for super-
vision and regulation of this process by the Public  Service  Commission
(PSC). The PSC shall also report annually to the Governor and the Legis-
lature on the implementation of the process.

EFFECTS  OF PRESENT LAW WHICH THIS BILL WOULD ALTER:  There is currently
no statutory prohibition of cramming in New York State law.

JUSTIFICATION:  New York and other states have recently  seen  a  resur-
gence  of  "cramming"  complaints. Cramming refers to the inclusion on a
telephone bill of unauthorized, deceptive or misleading third-party fees
or charges. These charges-are often added indirectly through  a  billing
warehouse  and  can  be  described  in  vague  terms  such  as "enhanced
services," "access," "activation," or "minimum usage fees."    Consumers
can become cramming victims through ,sweepstakes or contest entry forms,
calling  "900"  numbers,  answering  advertisements  for  information or
entertainment services that are available,  and  accepting  free  offers
that  trigger  an  automatic sign-up for a service such as "voice mail,"
along with a monthly service fee. Company telemarketers may offer a free
trial. without explaining the steps the consumer would have to  take  to
avoid  future  charges,  or  may  even doctor tape recordings to make it
appear that consumers had agreed to pay for services when  in  actuality
they  did  not.  Because  their  monthly bills are often larger and many
pages longer than residential customers, small businesses  are  frequent
targets of crammers.

Since  the  1990s, Federal and state agencies have tried to address this
issue by working with the telecommunications industry to enact voluntary
guidelines to combat the  practice.  The  New  York  Attorney  General's
office has also negotiated settlement agreements with some of the larger
telephone  companies  to  address  consumer complaints.   However, these

guidelines and  agreements  have  only  been  partially  effective,  and
require  constant vigilance and substantial effort by consumers to guard
against fraud. For every telephone customer who detects and successfully
fights  an  unauthorized  charge, there are many others who pay for them
month after month without being aware of the scam.

This bill is a proactive effort to prevent the  addition  of  fraudulent
charges  to  consumers' bills in the first place, and to ensure that the
burden of proof is on the company seeking to add fees and  charges,  and
not on individual consumers.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:  None.

EFFECTIVE  DATE:  180th day after enactment, with an immediate direction
to the PSC to begin implementation

2009-A10464 - Bill Text download pdf

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

                                  10464

                          I N  A S S E M B L Y

                             March 26, 2010
                               ___________

Introduced by M. of A. GIANARIS -- read once and referred to the Commit-
  tee on Consumer Affairs and Protection

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:

  Section  1.  The public service law is amended by adding a new section
92-g to read as follows:
  S 92-G. CRAMMING PROTECTIONS. 1. FOR THE  PURPOSES  OF  THIS  SECTION,
"CRAMMING  CHARGES"  MEANS THE INCLUSION AND IMPOSITION OF UNAUTHORIZED,
MISLEADING OR DECEPTIVE CHARGES AND FEES ON THE INVOICE  OR  BILL  OF  A
CONSUMER  FROM  A  TELEPHONE  CORPORATION WHEN SUCH FEES AND CHARGES ARE
LEVIED BY A THIRD PARTY.
  2. NO TELEPHONE CORPORATION SHALL INCLUDE ANY CRAMMING CHARGE  IN  THE
BILL  OR  INVOICE  OF  ANY CUSTOMER, UNLESS AND UNTIL THE PARTY IMPOSING
SUCH CHARGE PROVIDES PROOF TO THE TELEPHONE CORPORATION THAT THE CONSUM-
ER HAS EXPLICITLY AGREED TO THE NATURE AND AMOUNT OF SUCH CHARGE.  EVERY
SUCH  CRAMMING  CHARGE IMPOSED WITHOUT THE CONSENT OF THE CONSUMER SHALL
BE VOID AND UNENFORCEABLE, AND SHALL BE REMOVED FROM THE BILL OR INVOICE
OF THE CONSUMER UPON NOTICE FROM SUCH CONSUMER.
  S 2. Section 94 of the public service law is amended by adding  a  new
subdivision 5 to read as follows:
  5.  THE COMMISSION SHALL SUPERVISE AND ENSURE FULL COMPLIANCE WITH THE
PROVISIONS OF SECTION NINETY-TWO-G OF THIS ARTICLE. ANY  AND  ALL  RULES
AND  REGULATIONS  NECESSARY TO FULFILL SUCH DUTY SHALL BE PROMULGATED BY
THE COMMISSION. ON OR BEFORE FEBRUARY FIRST EACH  YEAR,  THE  COMMISSION
SHALL SUBMIT A WRITTEN REPORT TO THE GOVERNOR AND THE LEGISLATURE ON THE
IMPLEMENTATION  OF  THE PROVISIONS OF SECTION NINETY-TWO-G OF THIS ARTI-
CLE.
  S 3. This act shall take effect immediately, except that  section  one
of  this act shall take effect on the one hundred eightieth day after it
shall have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD16253-01-0

2009-A10464A - Details

See Senate Version of this Bill:: S7082
Current Committee:: Assembly Ways And Means
Law Section:: Public Service Law
Laws Affected:: Amd §92-d, add §92-g, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A3224, A10256, S1832
2013-2014: A1795
2015-2016: A392
2017-2018: A2426
2019-2020: A9624

2009-A10464A - Summary

2009-A10464A - Bill Text download pdf

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

                                10464--A

                          I N  A S S E M B L Y

                             March 26, 2010
                               ___________

Introduced by M. of A. GIANARIS -- read once and referred to the Commit-
  tee  on  Consumer Affairs and Protection -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

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:

  Section 1. The opening paragraph of section 92-d of the public service
law,  as separately amended by chapters 546 and 547 of the laws of 2000,
is amended to read as follows:
  Each local exchange telephone company shall inform  its  customers  of
the  provisions  of SECTION NINETY-TWO-G OF THIS ARTICLE, sections three
hundred ninety-nine-p  [and],  three  hundred  ninety-nine-z  and  three
hundred ninety-nine-pp of the general business law, and article ten-B of
the  personal  property  law, as such provisions relate to the rights of
consumers with respect to CRAMMING, telemarketers, sellers, the no tele-
marketing sales call statewide registry and automatic dialing-announcing
devices, by means of:
  S 2. The public service law is amended by adding a new section 92-g to
read as follows:
  S 92-G.  CRAMMING PROHIBITED. 1. FOR THE  PURPOSES  OF  THIS  SECTION,
"CRAMMING"  MEANS THE INCLUSION AND IMPOSITION OF CHARGES ON THE INVOICE
OR BILL OF A CUSTOMER FROM A TELEPHONE CORPORATION AT THE REQUEST  OF  A
THIRD  PARTY  THAT  (A)  WERE  NOT AUTHORIZED BY THE CUSTOMER, OR (B) IF
AUTHORIZED, WERE OBTAINED THROUGH MISLEADING OR DECEPTIVE MEANS.
  2. IN BILLING CUSTOMERS FOR TELEPHONE  SERVICE,  NO  TELEPHONE  CORPO-
RATION  SHALL  IN ANY WAY PERMIT OR FACILITATE THE PRACTICE OF CRAMMING.
NO CHARGES FOR ANY PRODUCTS OR SERVICES, OTHER THAN  THOSE  PROVIDED  BY
THE  TELEPHONE  CORPORATION  OR  ITS AFFILIATES OR OTHERWISE REQUIRED BY
LAW, SHALL BE INCLUDED ON ANY BILL OR INVOICE OF A CUSTOMER, UNLESS  AND
UNTIL  THE  THIRD  PARTY REQUESTING THE PAYMENT OF SUCH CHARGES PROVIDES
VALID PROOF TO THE TELEPHONE CORPORATION THAT:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD16253-02-0

A. 10464--A                         2

  A. THE CUSTOMER WAS PROVIDED WITH CLEAR AND CONSPICUOUS DISCLOSURE  OF
ALL  MATERIAL  TERMS  AND  CONDITIONS  OF  THE  PRODUCT OR SERVICE BEING
OFFERED, INCLUDING BUT NOT LIMITED TO ALL INITIAL AND RECURRING  CHARGES
AND  THE FACT THAT SUCH CHARGES SHALL APPEAR ON THE CUSTOMER'S TELEPHONE
BILL;
  B.  AFTER  RECEIVING  CLEAR  AND CONSPICUOUS DISCLOSURE AS PROVIDED IN
PARAGRAPH A OF THIS SUBDIVISION, THE CUSTOMER  EXPLICITLY  CONSENTED  TO
THE NATURE AND AMOUNT OF SUCH CHARGES; AND
  C. THE THIRD PARTY OFFERING THE PRODUCT OR SERVICE OR AN AGENT OF SUCH
THIRD  PARTY PROVIDED THE CUSTOMER WITH A TOLL-FREE TELEPHONE NUMBER THE
CUSTOMER MAY CALL AND AN ADDRESS TO WHICH  THE  CUSTOMER  MAY  WRITE  TO
RESOLVE ANY BILLING DISPUTE.
  3.  ANY CHARGES FOR THIRD PARTY PRODUCTS OR SERVICES THAT ARE INCLUDED
ON A BILL OR INVOICE BY A TELEPHONE CORPORATION WITHOUT THE  CONSENT  OF
THE CUSTOMER HAVING BEEN OBTAINED AS PROVIDED IN SUBDIVISION TWO OF THIS
SECTION  SHALL  BE VOID AND UNENFORCEABLE, AND SHALL BE REMOVED FROM THE
BILL OR INVOICE UPON NOTICE FROM SUCH CUSTOMER.
  4. THE COMMISSION SHALL SUPERVISE AND ENSURE FULL COMPLIANCE WITH  THE
PROVISIONS OF THIS SECTION, AND MAY PROMULGATE ANY RULES AND REGULATIONS
IT DEEMS NECESSARY OR DESIRABLE TO ENSURE SUCH COMPLIANCE, INCLUDING BUT
NOT  LIMITED TO ANY ADDITIONAL REQUIREMENTS FOR VERIFICATION OF CUSTOMER
ORDERS AND ANY ADDITIONAL STANDARDS THAT THIRD PARTIES  OR  AGENTS  MUST
MEET TO BE AUTHORIZED TO RECEIVE PAYMENT THROUGH THE INCLUSION OF CHARG-
ES  ON  BILLS  OR  INVOICES  OF TELEPHONE CORPORATIONS. ANY FAILURE BY A
TELEPHONE CORPORATION TO COMPLY WITH THE PROVISIONS OF THIS SECTION  MAY
BE  REDRESSED  AS PROVIDED IN SUBDIVISION THREE OF SECTION NINETY-SIX OF
THIS ARTICLE OR AS OTHERWISE AUTHORIZED BY LAW.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

2009-A10464B (ACTIVE) - Details

See Senate Version of this Bill:: S7082
Current Committee:: Assembly Ways And Means
Law Section:: Public Service Law
Laws Affected:: Amd §92-d, add §92-g, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2011-2012: A3224, A10256, S1832
2013-2014: A1795
2015-2016: A392
2017-2018: A2426
2019-2020: A9624

2009-A10464B (ACTIVE) - Summary

2009-A10464B (ACTIVE) - Bill Text download pdf

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

                                10464--B

                          I N  A S S E M B L Y

                             March 26, 2010
                               ___________

Introduced by M. of A. GIANARIS -- read once and referred to the Commit-
  tee  on  Consumer Affairs and Protection -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee  --  reported  and  referred to the Committee on Ways and Means --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

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:

  Section 1. The opening paragraph of section 92-d of the public service
law,  as separately amended by chapters 546 and 547 of the laws of 2000,
is amended to read as follows:
  Each local exchange telephone company shall inform  its  customers  of
the  provisions  of SECTION NINETY-TWO-G OF THIS ARTICLE, sections three
hundred ninety-nine-p  [and],  three  hundred  ninety-nine-z  and  three
hundred ninety-nine-pp of the general business law, and article ten-B of
the  personal  property  law, as such provisions relate to the rights of
consumers with respect to CRAMMING, telemarketers, sellers, the no tele-
marketing sales call statewide registry and automatic dialing-announcing
devices, by means of:
  S 2. The public service law is amended by adding a new section 92-g to
read as follows:
  S 92-G.  CRAMMING PROHIBITED. 1. FOR THE  PURPOSES  OF  THIS  SECTION,
"CRAMMING"  MEANS THE INCLUSION AND IMPOSITION OF CHARGES ON THE INVOICE
OR BILL OF A CUSTOMER FROM A TELEPHONE CORPORATION AT THE REQUEST  OF  A
THIRD  PARTY  OR  BILLING AGGREGATOR THAT (A) WERE NOT AUTHORIZED BY THE
CUSTOMER, OR (B) IF AUTHORIZED,  WERE  OBTAINED  THROUGH  MISLEADING  OR
DECEPTIVE MEANS.
  2. A CUSTOMER SHALL NOT BE LIABLE FOR CHARGES APPEARING ON THE INVOICE
OR  BILL  OF A TELEPHONE CORPORATION THAT ARE THE RESULT OF CRAMMING. NO
CHARGES FOR ANY PRODUCTS OR SERVICES, OTHER THAN THOSE PROVIDED  BY  THE
TELEPHONE CORPORATION, ITS AFFILIATES, A THIRD PARTY VIDEO PROVIDER WITH
WHO A TELEPHONE CORPORATION OR ITS AFFILIATE JOINTLY MARKET SERVICES, OR

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

                                                           LBD16253-04-0

A. 10464--B                         2

OTHERWISE  PERMITTED BY LAW, SHALL BE INCLUDED ON ANY BILL OR INVOICE OF
A CUSTOMER, UNLESS THE THIRD PARTY REQUESTING THE PAYMENT OF SUCH CHARG-
ES RETAINS AND PROVIDES UPON REQUEST VALID PROOF THAT:
  A.  THE CUSTOMER WAS PROVIDED WITH CLEAR AND CONSPICUOUS DISCLOSURE OF
ALL MATERIAL TERMS AND  CONDITIONS  OF  THE  PRODUCT  OR  SERVICE  BEING
OFFERED,  INCLUDING BUT NOT LIMITED TO ALL INITIAL AND RECURRING CHARGES
AND THE FACT THAT SUCH CHARGES SHALL APPEAR ON THE CUSTOMER'S  TELEPHONE
BILL;
  B.  AFTER  RECEIVING  CLEAR  AND CONSPICUOUS DISCLOSURE AS PROVIDED IN
PARAGRAPH A OF THIS SUBDIVISION, THE CUSTOMER  EXPLICITLY  CONSENTED  TO
THE NATURE AND AMOUNT OF SUCH CHARGES; AND
  C. THE THIRD PARTY OFFERING THE PRODUCT OR SERVICE OR AN AGENT OF SUCH
THIRD  PARTY PROVIDED THE CUSTOMER WITH A TOLL-FREE TELEPHONE NUMBER THE
CUSTOMER MAY CALL AND AN ADDRESS TO WHICH  THE  CUSTOMER  MAY  WRITE  TO
RESOLVE ANY BILLING DISPUTE.
  3.  ANY CHARGES FOR THIRD PARTY PRODUCTS OR SERVICES THAT ARE INCLUDED
ON A BILL OR INVOICE BY A TELEPHONE CORPORATION WITHOUT THE  CONSENT  OF
THE CUSTOMER HAVING BEEN OBTAINED AS PROVIDED IN SUBDIVISION TWO OF THIS
SECTION  SHALL  BE VOID AND UNENFORCEABLE, AND SHALL BE REMOVED FROM THE
BILL OR INVOICE UPON NOTICE FROM SUCH CUSTOMER.
  4. THE COMMISSION SHALL  SUPERVISE  AND  ENSURE  COMPLIANCE  WITH  THE
PROVISIONS OF THIS SECTION, AND MAY PROMULGATE ANY RULES AND REGULATIONS
IT DEEMS NECESSARY OR DESIRABLE TO ENSURE SUCH COMPLIANCE, INCLUDING BUT
NOT  LIMITED TO ANY ADDITIONAL REQUIREMENTS FOR VERIFICATION OF CUSTOMER
ORDERS AND ANY ADDITIONAL STANDARDS THAT THIRD PARTIES  OR  AGENTS  MUST
MEET TO BE AUTHORIZED TO RECEIVE PAYMENT THROUGH THE INCLUSION OF CHARG-
ES  ON  BILLS  OR  INVOICES  OF TELEPHONE CORPORATIONS. ANY FAILURE BY A
TELEPHONE CORPORATION TO COMPLY WITH THE PROVISIONS OF THIS SECTION  MAY
BE  REDRESSED  AS PROVIDED IN SUBDIVISION THREE OF SECTION NINETY-SIX OF
THIS ARTICLE OR AS OTHERWISE AUTHORIZED BY LAW.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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Assembly Bill A10464B

Sponsored By

Archive: Last Bill Status - In Assembly Committee

Actions

Bill Amendments

2009-A10464 - Details

2009-A10464 - Summary

2009-A10464 - Sponsor Memo

2009-A10464 - Bill Text download pdf

2009-A10464A - Details

2009-A10464A - Summary

2009-A10464A - Bill Text download pdf

2009-A10464B (ACTIVE) - Details

2009-A10464B (ACTIVE) - Summary

2009-A10464B (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

GIANARIS

Archive: Last Bill Status - In Assembly Committee

Actions

Bill Amendments

2009-A10464 - Details

2009-A10464 - Summary

2009-A10464 - Sponsor Memo

2009-A10464 - Bill Text download pdf

2009-A10464A - Details

2009-A10464A - Summary

2009-A10464A - Bill Text download pdf

2009-A10464B (ACTIVE) - Details

2009-A10464B (ACTIVE) - Summary

2009-A10464B (ACTIVE) - Bill Text download pdf

Comments