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

                                  10256

                          I N  A S S E M B L Y

                              May 16, 2012
                               ___________

Introduced  by  M.  of  A.  SKARTADOS, DINOWITZ, BRONSON, CASTRO, CLARK,
  COLTON, FARRELL, GALEF, JAFFEE, LANCMAN, MARKEY,  N. RIVERA,  ROBERTS,
  STEVENSON, TITONE -- Multi-Sponsored by -- M. of A. CYMBROWITZ, GLICK,
  GOTTFRIED, HOOPER, SCHIMEL, WEINSTEIN -- read once and referred to the
  Committee on Consumer Affairs and Protection

AN  ACT to amend the public service law and the general business 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
WHOM  A  TELEPHONE CORPORATION OR ITS AFFILIATE JOINTLY MARKET SERVICES,
OR OTHERWISE PERMITTED BY LAW, SHALL BE INCLUDED ON ANY BILL OR  INVOICE

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

                                                           LBD04127-11-1

A. 10256                            2

OF  A  CUSTOMER,  UNLESS  THE THIRD PARTY REQUESTING THE PAYMENT OF SUCH
CHARGES 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. The general business law is amended by adding a new section 390-
bb to read as follows:
  S 390-BB. CRAMMING PROHIBITED. 1. FOR THE PURPOSES  OF  THIS  SECTION,
"CRAMMING"  MEANS THE INCLUSION AND IMPOSITION OF CHARGES ON THE INVOICE
OR BILL FOR TELEPHONE SERVICE TO A  CUSTOMER  FROM  A  CABLE  TELEVISION
COMPANY,  AS DEFINED IN SECTION TWO HUNDRED TWELVE OF THE PUBLIC SERVICE
LAW, THAT PROVIDES TELEPHONE SERVICE TO CUSTOMERS IN NEW  YORK,  AT  THE
REQUEST OF A THIRD PARTY OR BILLING AGGREGATOR THAT (A) WERE NOT AUTHOR-
IZED  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 CABLE TELEVISION COMPANY FOR TELEPHONE SERVICE THAT ARE THE
RESULT OF CRAMMING. NO CHARGES FOR ANY PRODUCTS OR SERVICES, OTHER  THAN
THOSE  PROVIDED BY THE CABLE TELEVISION COMPANY, ITS AFFILIATES, A THIRD
PARTY VIDEO PROVIDER WITH WHOM A CABLE TELEVISION COMPANY OR ITS  AFFIL-
IATE  JOINTLY  MARKET  SERVICES, OR OTHERWISE PERMITTED BY LAW, SHALL BE
INCLUDED ON ANY BILL OR INVOICE FOR TELEPHONE SERVICE, UNLESS THE  THIRD
PARTY  REQUESTING  THE PAYMENT OF SUCH CHARGES 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 FOR  TELE-
PHONE SERVICE 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

A. 10256                            3

  (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 FOR TELEPHONE SERVICE BY A CABLE TELEVISION COMPANY
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  CUSTOM-
ER.
  S  4.  Subdivision  1  of  section 227-a of the public service law, as
added by chapter 83 of the laws of 1995, is amended to read as follows:
  1. Every cable  television  company,  and  all  officers,  agents  and
employees of any cable television company shall obey, observe and comply
with every order, direction or requirement made by the commission, under
authority  of  this  article, so long as the same shall be and remain in
force. Except as provided in subdivision two of this section, any  cable
television  company which shall violate any provision of this article OR
SECTION THREE HUNDRED NINETY-BB OF THE GENERAL BUSINESS  LAW,  or  which
fails,  omits  or  neglects to obey, observe or comply with any order or
any direction or requirement of the commission,  shall  forfeit  to  the
people of the state of New York a sum to be set by the commission not to
exceed  one thousand dollars for each and every offense; every violation
of any such order or direction or requirement, or  of  this  article  OR
SECTION  THREE HUNDRED NINETY-BB OF THE GENERAL BUSINESS LAW, shall be a
separate and distinct offense, and, in case of a  continuing  violation,
every  day's  continuance  thereof  shall  be  a  separate  and distinct
offense.
  S 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law.