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.