S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2426--A
                                                         Cal. No. 188
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 20, 2017
                                ___________
 
 Introduced by M. of A. SKARTADOS, WEPRIN, OTIS -- read once and referred
   to  the  Committee  on Consumer Affairs and Protection -- ordered to a
   third reading, amended and ordered reprinted, retaining its  place  on
   the order of third reading

 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-I 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:
   § 2. The public service law is amended by adding a new section 92-i to
 read as follows:
   § 92-I.  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.
                                                            LBD01558-04-8

 A. 2426--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.
   §  3. The general business law is amended by adding a new section 390-
 bb to read as follows:
   § 390-BB. CRAMMING PROHIBITED. 1. FOR THE PURPOSES  OF  THIS  SECTION,
 "CRAMMING"  MEANS THE INCLUSION AND IMPOSITION OF CHARGES ON THE INVOICE
 OR BILL FOR TELEPHONE SERVICE TO A  CUSTOMER  FROM  A  CABLE  TELEVISION
 COMPANY,  AS DEFINED IN SECTION TWO HUNDRED TWELVE OF THE PUBLIC SERVICE
 LAW, THAT PROVIDES 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 FOR TELEPHONE SERVICE 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 WHOM A CABLE TELEVISION COMPANY OR ITS  AFFIL-
 IATE  JOINTLY  MARKET  SERVICES, OR OTHERWISE PERMITTED BY LAW, SHALL BE
 INCLUDED ON ANY BILL OR INVOICE FOR TELEPHONE SERVICE, 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
 SERVICE BILL;

 A. 2426--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 FOR TELEPHONE SERVICE 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  CUSTOM-
 ER.
   §  4.  Subdivision  1  of  section 227-a of the public service law, as
 added by chapter 83 of the laws of 1995, is amended to read as follows:
   1. Every cable  television  company,  and  all  officers,  agents  and
 employees of any cable television company shall obey, observe and comply
 with every order, direction or requirement made by the commission, under
 authority  of  this  article, so long as the same shall be and remain in
 force. Except as provided in subdivision two of this section, any  cable
 television  company which shall violate any provision of this article OR
 SECTION THREE HUNDRED NINETY-BB OF THE GENERAL BUSINESS  LAW,  or  which
 fails,  omits  or  neglects to obey, observe or comply with any order or
 any direction or requirement of the commission,  shall  forfeit  to  the
 people of the state of New York a sum to be set by the commission not to
 exceed  one thousand dollars for each and every offense; every violation
 of any such order or direction or requirement, or  of  this  article  OR
 SECTION  THREE HUNDRED NINETY-BB OF THE GENERAL BUSINESS LAW, shall be a
 separate and distinct offense, and, in case of a  continuing  violation,
 every  day's  continuance  thereof  shall  be  a  separate  and distinct
 offense.
   § 5. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.