NY State Senate Bill 2023-S2653

Current Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to consumer protection
Jan 23, 2023	referred to consumer protection

2023-S2653 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §390-e, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S7923
2019-2020: S2447
2021-2022: S5789

2023-S2653 (ACTIVE) - Summary

Creates the cell phone users' bill of rights; provides that customers be given a thirty-day trial period; provides that a customer shall not be liable for calls or messages that were not made from the customer's phone; provides that a company shall be liable to the customer for violating these provisions.

2023-S2653 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2653

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the general business law, in relation to creating the
cell phone users' bill of rights

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill provides consumer protection rights for cell phone users
including the right to cancel. The cell phone users' bill of rights
would include the following consumer protections: require that companies
inclUde a risk free thirty day trial period; require that bills contain
only charges for services authorized by the consumer; require that bills
contain the nature and origin of all fees, a written confirmation of any
cell phone order, including rates and terms for each service ordered in
easy to read format; require that the cell phone company watches the
calling trends and places a "courtesy call" when calling patterns seem
out of the ordinary; and require that all bills contain the nature and
origin of all fees.

SUMMARY OF SPECIFIC PROVISIONS:

Adds a new section to the general business law that allows for a thirty
day trial period beginning when a customer physically receives the
phone. It will require that no person, firm, corporation, or any other
entity shall charge a customer for any service such customer did not
request or authorize. It will require that the cellular phone provider
include on its monthly statement a clear and concise breakdown of all
fees, costs and taxes; specifying which fees are mandated by the govern-
ment. The section will state that a customer is not liable for any
charges on the account resulting from the theft of the customer's cellu-
lar phone identification or signal. It also states that any person,
film, corporation or other entity that violates the provisions of this
section shall pay a fine not less than five hundred dollars and not more
than five thousand dollars per violation. It also requires that the film
is liable to the customer for civil damages in an amount of two hundred
fifty dollars or the customer's actual expenses, whichever is greater.

 
JUSTIFICATION:

The cellular phone industry is booming with no end in sight. Last

 
JUSTIFICATION:

year, the Telecommunications Industry Association reported that the
revenues exceeded $155.2 billion and more than a billion new cell phones
were sold. Meanwhile, due to lack of legislation regulating these compa-
nies, consumers are at an enormous financial risk. Unlike credit cards,
if a cell phone is lost or stolen, the owner is held responsible for
100% of the fraudulent charges on the phone until the account is de-ac-
tivated.

Cell phone companies will not contact customers regarding suspicious use
of their account because they are under no legal obligation to do so.
The cell phone users' bill of rights will help to protect consumers from
fraud and from the relatively unregulated practices of cell phone compa-
nies.
 
PRIOR LEGISLATIVE HISTORY:

2022: S5789

2018: S 7923 COMRIE Same as A 4206 Ortiz

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law.

2023-S2653 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2653
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 23, 2023
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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  creating  the
   cell phone users' bill of rights
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 390-e to read as follows:
   § 390-E. CELL PHONE USERS' BILL OF RIGHTS. 1. ANY PERSON, FIRM, CORPO-
 RATION, OR OTHER ENTITY THAT OFFERS CELLULAR PHONES AND  CELLULAR  PHONE
 SERVICES  TO  THE  PUBLIC  SHALL PROVIDE EACH CUSTOMER WITH A THIRTY-DAY
 TRIAL PERIOD. IF A CUSTOMER RETURNS A PHONE OR  CANCELS  SERVICE  WITHIN
 THAT  THIRTY-DAY  PERIOD,  HE  OR SHE SHALL NOT BE SUBJECT TO ANY TERMI-
 NATION FEES.
   A. WHEN A NEW PHONE IS PURCHASED, THE THIRTY-DAY PERIOD SHALL COMMENCE
 WHEN THE CUSTOMER PHYSICALLY RECEIVES THE PHONE.
   B. WHEN A PERSON APPLIES FOR NEW SERVICE, THE THIRTY-DAY PERIOD  SHALL
 COMMENCE WHEN THE CUSTOMER'S ACCOUNT IS ACTIVATED.
   2.  WHENEVER  A PERSON RETURNS A PHONE OR CANCELS A SERVICE WITHIN THE
 THIRTY-DAY TRIAL PERIOD REQUIRED PURSUANT TO  SUBDIVISION  ONE  OF  THIS
 SECTION,  SUCH  PERSON  SHALL BE RESPONSIBLE FOR THE MONTHLY ACCESS FEE,
 PRO RATA, AND SHALL ALSO BE RESPONSIBLE FOR THE COSTS OF ANY CALLS  MADE
 BY SUCH PERSON IF THEY ARE NOT INCLUDED WITHIN THE MONTHLY ACCESS FEE.
   3.  A.  ANY  PERSON,  FIRM, CORPORATION, OR OTHER ENTITY THAT PROVIDES
 CELLULAR PHONE SERVICES TO A CUSTOMER FOR A FEE,  SUCH  FEE  SHALL  ONLY
 INCLUDE  THOSE  SERVICES  AUTHORIZED  BY  THE CUSTOMER. NO PERSON, FIRM,
 CORPORATION, OR OTHER ENTITY SHALL CHARGE A  CUSTOMER  FOR  ANY  SERVICE
 SUCH CUSTOMER DID NOT REQUEST OR AUTHORIZE.
   B. ANY PERSON, FIRM, CORPORATION, OR OTHER ENTITY THAT PROVIDES CELLU-
 LAR  PHONE SERVICES TO A CUSTOMER FOR A FEE SHALL INCLUDE ON ITS MONTHLY
 STATEMENT A CLEAR AND CONCISE BREAKDOWN OF ALL FEES, COSTS,  AND  TAXES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04508-01-3

 S. 2653                             2
 
 SUCH  BREAKDOWN  SHALL  FURTHER SPECIFY WHICH FEES, TAXES, OR SURCHARGES
 ARE MANDATED BY THE GOVERNMENT, AND WHICH FEES, TAXES, OR SURCHARGES ARE
 IMPOSED BY THE COMPANY. SUCH MONTHLY STATEMENT SHALL  ALSO  INCLUDE  THE
 RATES AND TERMS OF THE CUSTOMER'S SERVICE AGREEMENT.
   4.  A  CUSTOMER  SHALL  NOT  BE  LIABLE  FOR ANY CHARGES TO HIS OR HER
 ACCOUNT IF SUCH CHARGES ARE THE RESULT OF CALLS OR MESSAGES PLACED  FROM
 A  PHONE OTHER THAN ONE OWNED BY THE CUSTOMER. IT SHALL BE THE RESPONSI-
 BILITY OF THE PERSON, FIRM, CORPORATION, OR OTHER ENTITY TO ENSURE  THAT
 ALL  SERVICES  ARE  USED  SOLELY  BY  THE PHONE REGISTERED TO THE PERSON
 AUTHORIZED UNDER THE SERVICE AGREEMENT. A CUSTOMER SHALL NOT  BE  LIABLE
 FOR  ANY  CHARGES  RESULTING  FROM  THE THEFT OF THE CUSTOMER'S CELLULAR
 PHONE IDENTIFICATION OR SIGNAL.
   5. ANY PERSON, FIRM, CORPORATION, OR OTHER ENTITY  THAT  VIOLATES  THE
 PROVISIONS  OF  THIS  SECTION  SHALL  PAY  A  FINE OF NOT LESS THAN FIVE
 HUNDRED DOLLARS NOR MORE THAN FIVE THOUSAND DOLLARS PER VIOLATION.  SUCH
 PERSON,  FIRM,  CORPORATION, OR OTHER ENTITY SHALL ALSO BE LIABLE TO THE
 CUSTOMER FOR CIVIL DAMAGES IN AN AMOUNT OF TWO HUNDRED FIFTY DOLLARS  OR
 THE  CUSTOMER'S  ACTUAL  EXPENSES, WHICHEVER IS GREATER. THE COURT SHALL
 GRANT REASONABLE ATTORNEY'S FEES TO ANY CUSTOMER WHO IS SUCCESSFUL IN AN
 ACTION BROUGHT PURSUANT TO THIS SUBDIVISION.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.

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Senate Bill S2653

Sponsored By

Current Bill Status - In Senate Committee Consumer Protection Committee

2023-S2653 (ACTIVE) - Details

2023-S2653 (ACTIVE) - Summary

2023-S2653 (ACTIVE) - Sponsor Memo

2023-S2653 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2653

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Sponsored By

Leroy Comrie

Current Bill Status - In Senate Committee Consumer Protection Committee

2023-S2653 (ACTIVE) - Details

2023-S2653 (ACTIVE) - Summary

2023-S2653 (ACTIVE) - Sponsor Memo

2023-S2653 (ACTIVE) - Bill Text download pdf

Comments