senate Bill S7652

Signed By Governor
2011-2012 Legislative Session

Requires persons operating telephone numbers, the use of which causes the caller to be billed a fee on his or her telephone bill, to provide notice of the fee

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Archive: Last Bill Status - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Oct 03, 2012 signed chap.490
Sep 21, 2012 delivered to governor
Jun 18, 2012 returned to senate
passed assembly
ordered to third reading rules cal.175
substituted for a4636b
referred to corporations, authorities and commissions
delivered to assembly
passed senate
Jun 14, 2012 ordered to third reading cal.1265
Jun 12, 2012 referred to rules

Votes

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Co-Sponsors

S7652 - Bill Details

See Assembly Version of this Bill:
A4636B
Law Section:
General Business Law
Laws Affected:
Amd ยง336-b, Gen Bus L

S7652 - Bill Texts

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Requires any person or entity operating telephone numbers, the use of which causes the caller to be billed a fee on his or her telephone bill, to provide the caller with notice of the fee to be imposed for such call and advise the caller to hang up if he or she does not want to pay the fee.

view sponsor memo
BILL NUMBER:S7652

TITLE OF BILL:
An act to amend the general business law, in relation to requiring
persons or entities operating a telecommunications services system,
access to which causes the caller to be charged a fee on his or her
telephone service bill, to provide notice of the imposition of such fee

PURPOSE:
To stop the victimization of unsuspecting telephone callers who falsely
believe they are dialing information and resources telephone numbers,
only to fall victim to costly phone scams. This bill will put a stop to
telephone scammers that are using local numbers in advertisements to
lure in unsuspecting callers. These scammers are then forwarding the
calls to pay-per-call lines and then billing the unsuspecting caller for
the phone charge.

This bill will require a notice of warning of fee/charge imposition for
calling certain telephone numbers. The warning message will be in same
language as advertisement for such call line.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1. The general business law is amended by adding a new
subsection to 336-b to read as follows: When applicable, providers of
interactive information network services shall cause the following
message or words to the effect of the following to be provided to the
caller, in the language in which information during such call will be
provided:

"The call you are placing will cost (rate at which fees or charges are
incurred). In order for you to receive the information you are calling
for, that fee will be charged to your telephone bill. If you do not want
to pay this amount, please hang up."

The calculation of any applicable fees by the provider of an interactive
information network service shall not commence until ten seconds after
the provision of the notice of fees to be charged to the consumer
required by this subsection.

This act shall take effect on the thirtieth day after it shall have
become a law.

JUSTIFICATION:
On a daily basis, telephone scammers post advertisements throughout
neighborhoods in New York State showing a local number to call for a
variety of information requests of possible interest to consumers.

The local number prompts a call to a second number, which then charges
the caller a hefty fee for the phone call. Many if not most times the
caller receives worthless information after making calls looking for
employment, affordable housing, child care, educational opportunities

and other subjects of interest to people searching to improve their
living conditions.

This type of scam has been labeled "remote call forwarding" by the tele-
phone companies. Since the area codes are local, they seem legitimate
to any persons requesting information about the advertisement, however
it is the second three numbers that are where the scam is hidden. Since
the three digit exchange is not always advertised, the scammers prompt
callers to a second number with the exchange that will charge a hefty
fee to the caller.

This legislation will help stop these types of phone scams by keeping
consumers informed of what they would be charged in the language that
they could understand.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the 30th day after it shall become a law.

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

                                  7652

                            I N  S E N A T E

                              June 12, 2012
                               ___________

Introduced  by Sen. GRISANTI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the general  business  law,  in  relation  to  requiring
  persons  or  entities  operating a telecommunications services system,
  access to which causes the caller to be charged a fee on  his  or  her
  telephone  service  bill,  to provide notice of the imposition of such
  fee

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

  Section  1. Subdivisions 5 and 6 of section 336-b of the general busi-
ness law, as added by chapter 495 of the laws of  1991,  are  renumbered
subdivisions  6  and  7,  and  a  new  subdivision 5 is added to read as
follows:
  5. WHEN  APPLICABLE,  PROVIDERS  OF  INTERACTIVE  INFORMATION  NETWORK
SERVICES SHALL CAUSE THE FOLLOWING MESSAGE OR WORDS TO THE EFFECT OF THE
FOLLOWING  TO BE PROVIDED TO THE CALLER, IN THE LANGUAGE IN WHICH INFOR-
MATION DURING SUCH CALL WILL BE PROVIDED:
  "THE CALL YOU ARE PLACING WILL COST (RATE AT WHICH FEES OR CHARGES ARE
INCURRED). IN ORDER FOR YOU TO RECEIVE THE INFORMATION YOU  ARE  CALLING
FOR, THAT FEE WILL BE CHARGED TO YOUR TELEPHONE BILL. IF YOU DO NOT WANT
TO PAY THIS AMOUNT, PLEASE HANG UP."
  THE  CALCULATION OF ANY APPLICABLE FEES BY THE PROVIDER OF AN INTERAC-
TIVE INFORMATION NETWORK SERVICE SHALL NOT COMMENCE  UNTIL  TEN  SECONDS
AFTER  THE PROVISION OF THE NOTICE OF FEES TO BE CHARGED TO THE CONSUMER
REQUIRED BY THIS SUBDIVISION.  THE PROVISIONS OF THIS SUBDIVISION  SHALL
NOT  APPLY  TO  ANY  SERVICE PROVIDED BY: (A) A TELEPHONE CORPORATION AS
THAT TERM IS DEFINED IN SECTION TWO OF THE PUBLIC  SERVICE  LAW,  (B)  A
PROVIDER OF MOBILE SERVICE AS DEFINED IN 47 U.S.C. S 153, OR (C) A CABLE
TELEVISION  COMPANY  AS  DEFINED  IN  SECTION  TWO HUNDRED TWELVE OF THE
PUBLIC SERVICE LAW, OR THE AFFILIATES OF ANY OF THE FOREGOING.
  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.
                                                           LBD00013-04-2

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