senate Bill S3275

2013-2014 Legislative Session

Requires authorization for and verification of the validity of third-party charges for products and services billed to a customer on bills issued by telecommunication providers

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to consumer protection
Jan 31, 2013 referred to consumer protection

S3275 - Details

Current Committee:
Law Section:
General Business Law
Laws Affected:
Add ยง399-zzzz, Gen Bus L
Versions Introduced in 2011-2012 Legislative Session:
S3873

S3275 - Summary

Requires authorization by the customer, and verification by the telecommunications providers, of the validity of third-party charges for products and services billed to a customer on bills issued by telecommunication providers to their customers.

S3275 - Sponsor Memo

S3275 - Bill Text download pdf

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

                                  3275

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 31, 2013
                               ___________

Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general  business  law,  in  relation  to  requiring
  authorization  by  the  customer, and verification by the telecommuni-
  cations providers, of the validity of third-party charges for products
  and services billed to a customer on bills issued by telecommunication
  providers to their customers

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

  Section  1.  Legislative  findings  and purpose. The legislature finds
that some third-party companies are placing unauthorized service charges
on telecommunications customers' monthly bills. The practice is commonly
called "cramming". Cramming is a form of  fraud  in  which  charges  are
added  to  a  bill  by  a  third party without the customer's consent or
disclosure. The legislature further finds  that  many  New  Yorkers  are
switching  to  phone service provided by cable TV or Internet companies.
These companies can also offer third-party billing that may inadvertent-
ly result in fraud through no fault of their own  actions.  Accordingly,
the  purpose  of this act is to help reduce the level of cramming and to
provide remedies that offer greater protection to the telecommunications
customers of all service providers.
  S 2. The general business law is amended by adding a new section  399-
zzzz to read as follows:
  S  399-ZZZZ.  AUTHORIZATION  AND  VERIFICATION FOR PRODUCT AND SERVICE
CHARGES TO BE BILLED ON A CONSUMER'S BILL. 1. DEFINITIONS. FOR  PURPOSES
OF THIS SECTION:
  (A) "BILLING AGENT" MEANS ANY ENTITY THAT SUBMITS CHARGES TO THE BILL-
ING CARRIER ON BEHALF OF ITSELF OR ANY SERVICE PROVIDER.
  (B)  "BILLING  CARRIER" MEANS ANY TELEPHONE CORPORATION, AS DEFINED IN
SUBDIVISION SEVENTEEN OF SECTION TWO OF  THE  PUBLIC  SERVICE  LAW,  AND
EVERY CABLE TELEVISION COMPANY, AS DEFINED IN SUBDIVISION ONE OF SECTION

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01043-01-3

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