Provides for enhanced consumer protection measures and enforcement of the do-not-call registry

Section 1 of the bill also adds a new subsection 2 to § 399-z to limit the time of day that a telemarketer may call and to require a telemarketer to provide consumers with its name, the purpose of the call, and the identity and cost of the goods or services being offered. This section also renumbers various provisions in the interest of consistency with the amended law.

Section 2 of the bill provides that it would take effect immediately.

Existing law

Currently, GBL § 399-z provides consumers protection from unsolicited telemarketing sales calls, under the Do-Not-Call law.

The federal Telemarketing Sales Rule, or TSR, 16 CFR Part 310 et seq., prohibits certain telemarketing sales practices. Specifically, the

TSR requires telemarketers to call only between 8:00 a.m. and 9 p.m. local time and requires them to disclosure truthfully, promptly, and clearly and conspicuously, the (1) identity of the seller/telemarketer; (2) that the purpose of the call is to sell goods or services; and, (3) the nature of the goods and services. (16 CFR § 310.4).

The federal Telephone Consumer Protection Act of 1991 (TCPA), among its Provisions, restricts the use of automatic dialing systems and prerecorded or artificial messages. (47 U.S.C. § 227). One of its implementing rules, 47 CFR § 64. 200, prohibits any telemarketer from using an artificial or prerecorded voice to deliver a message without the prior express consent of the called party.

Prior legislative history

This is a new bill.

Statement in support

As part of its statutory mission and duties, the Consumer Protection Board (CPB) is responsible for enforcing the Do-Not-Call (DNC) law. Since the law became effective in April 200 I, it bas become one of the most popular consumer laws enacted in New York State. D N C is the most common subject of complaint received by the CPB's Consumer

Assistance Unit. n the first two quarters of2008, the total number of DNC related complaints or inquiries totaled 52,425.

By further defining "telemarketing sales call" in the DNC statute to include any outbound telephone calling technology that delivers a prerecorded unsolicited telemarketing sales call message either to a customer or to their voicemail or answering machine service, the CPB seeks to make New York State law consistent with the TSR and the TCPA. To save companies time and resources, many are turning to automatic prerecorded calling as opposed to live person-to-person calling.

This bill clarifies that prerecorded unsolicited telemarketing sales calls are subject to the same enforcement provisions as "live" calls, as they are just as onerous and burdensome to New Yorkers who do not want to receive unsolicited calls. Further, it is important to limit the time of day that a telemarketer may call a consumer. The CPB enforcement staff has received many complaints relating to disruptive late night and early morning telemarketing calls. While the federal law contains this prohibition, the current State law does not. In addition, by requiring telemarketers to provide consumers with its name, the purpose of the call, and the identity and cost of the goods or services being offered, consumers can better determine the nature of the call and the company that is calling, thereby assisting in enforcement by the Agency.

Many unscrupulous companies are victimizing consumers by pretending to be telemarketers in order to gain valuable and private information from New Yorkers. New York State is sixth per capita in identity theft complaints in the nation. Last year, as a result of fraud, New York consumers reported paying $46,103,842. Criminals are becoming more savvy in perpetrating crimes relating to personal identity and this amendment is but one more way to thwart their efforts.

Budget implications

None.

Effective date

This act takes effect immediately.