Assembly Bill A4486

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

                                  4486

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 3, 2011
                               ___________

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

AN ACT to amend the public service law,  in  relation  to  enacting  the
  "cramming prevention act"

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

  Section 1. Short title.  This act shall be known and may be  cited  as
the "cramming prevention act".
  S  2. 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 3. 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.
                                                           LBD04127-02-1
              

A. 4486                             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 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law.