Assembly Bill A9541A

                                BILL NUMBER:A9541A

TITLE OF BILL:  An act to amend the general business law, in relation to
prohibiting  an  additional fee or rate to be charged in certain circum-
stances

PURPOSE OR GENERAL IDEA OF BILL: This purpose of this bill is to prohib-
it businesses from imposing an additional rate or fee on the account  of
a  consumer  who  chooses  to receive paper billing statements or pay by
United States mail.

SUMMARY OF SPECIFIC PROVISIONS: This bill  would  prohibit  any  person,
partnership,  corporation,  association  or  other  business entity from
charging a consumer an additional rate or fee or a differential  in  the
rate  or  fee  associated  with  payment on an account when the consumer
chooses to pay by United States mail or receive a paper  billing  state-
ment.

The  bill  stipulates  that  its  provisions  shall  not be construed to
prohibit a person, partnership, corporation, association or other  busi-
ness entity from offering consumers a credit or other incentive to elect
a specific payment or billing option.

Violations  would  be  deemed  a  deceptive  act and practice subject to
enforcement under Article 22-A of the General Business Law.

              

JUSTIFICATION: In recent months, there  have  been  instances  of  major
companies  proposing  to  impose  an  additional  fee on the accounts of
customers that choose to receive a paper bill or pay  by  United  States
mail. Such paper billing and payment fees unfairly impact consumers that
do  not  have Internet access in their homes, as well as, those that are
uncomfortable using the Internet, including  many  senior  citizens  and
those concerned about personal privacy.

Paper  billing  and  payment  fees  disproportionately affect low-income
consumers, who are less likely to have access to the Internet.  Further-
more, such policies impose an additional burden on those  customers  who
choose  to  file  their  billing statements for later reference, as such
customers will be forced to bear the cost of printing electronic billing
statements on their home printer.

While the environmental benefits of electronic billing and  payment  are
clear,  a  better  approach to reducing paper use in this area is avail-
able. Several major companies have successfully reduced paper  usage  by
offering  customers  an  incentive  to  switch to electronic billing and
payment.

This legislation would expand upon the provisions of Section 702 of  the
General  Business  Law, which prohibit creditors from charging customers
an additional rate or fee when the consumer chooses  to  pay  by  United
States mail:

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:  None.

EFFECTIVE DATE:  180 days after it shall have become a law,