S T A T E O F N E W Y O R K
________________________________________________________________________
1832--A
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 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04127-06-1
S. 1832--A 2
WHOM A TELEPHONE CORPORATION OR ITS AFFILIATE JOINTLY MARKET SERVICES,
OR OTHERWISE PERMITTED BY LAW, SHALL BE INCLUDED ON ANY BILL OR INVOICE
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 OF A CUSTOMER FROM A CABLE TELEVISION COMPANY, AS DEFINED IN
SECTION TWO HUNDRED TWELVE OF THE PUBLIC SERVICE LAW, AND THEIR SUBSID-
IARIES FURNISHING 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 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 WHO A CABLE CORPORATION OR ITS AFFILIATE JOINTLY MARKET
SERVICES, OR OTHERWISE PERMITTED BY LAW, SHALL BE INCLUDED ON ANY BILL
OR INVOICE 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 CABLE
TELEVISION BILL;
S. 1832--A 3
(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 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 CUSTOMER.
4. THE DEPARTMENT OF LAW SHALL SUPERVISE AND ENSURE COMPLIANCE WITH
THE PROVISIONS OF THIS SECTION, AND MAY PROMULGATE ANY RULES AND REGU-
LATIONS IT DEEMS NECESSARY OR DESIRABLE TO ENSURE SUCH COMPLIANCE,
INCLUDING BUT NOT LIMITED TO ANY ADDITIONAL REQUIREMENTS FOR VERIFICA-
TION OF CUSTOMER ORDERS AND ANY ADDITIONAL STANDARDS THAT THIRD PARTIES
OR AGENTS MUST MEET TO BE AUTHORIZED TO RECEIVE PAYMENT THROUGH THE
INCLUSION OF CHARGES ON BILLS OR INVOICES OF CABLE TELEVISION COMPANIES.
ANY FAILURE BY A CABLE TELEVISION COMPANY TO COMPLY WITH THE PROVISIONS
OF THIS SECTION MAY BE REDRESSED AS OTHERWISE AUTHORIZED BY LAW.
S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law.