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S949Senate2015-2016 SessionSame asA5004

Requires disclosure terms relating to prepaid calling cards to be provided in languages other than English and increases fines for violations of disclosure requirements

Sponsor José M. SerranoSD-29+1 co-sponsorAffects Environment & Energy
Status
In Senate Committee
Energy And Telecommunications
Impact
Pending
Passage
Pending

Bill progress

Step 2 of 7

In committee · Energy And Telecommunications

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Sponsors

Primary sponsor
José M. Serrano

Senator · Senate District 29

1 Co-sponsor

History

  1. Referred to energy and telecommunications
  2. Referred to energy and telecommunications

Companion bill

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

BILL NUMBER:S949

Title of bill

An act to amend the public service law, in relation to requiring disclosure terms relating to prepaid calling cards to be provided in languages other than English and increasing fines for violations of disclosure requirements

Purpose

To enhance consumes protection in prepaid calling cards.

Summary of provisions

Creates subdivision 3-a of section 92-f of the public service law to require that if any language other than English is used in the sale or advertising of prepaid calling cards then that language must likewise be used in disclosure provisions.

-Defines "promotional material."

-Creates a requirement of clear and conspicuous disclosure in the sale of prepaid calling cards over the internet.

-Requires any promotional calling rate to state the expiration of the promotional rate.

-Requires the disclosure of any additional surcharge associated with the calling rate.

-Increases the penalties for any violations of the act.

Justification

Calling cards are often used by new immigrants with families and friends abroad and by friends and families of military personnel as a means to make inexpensive phone calls overseas. A study by Consumer Reports unveiled some of the unscrupulous practices that result in calling card consumers getting less than what they bargained for. Among a few of their findings:

-Of the 130 calling cards purchased about three quarters of the cards didn't disclose the proper rates.

-Many of the cards had unclear post-call fees, periodic fees, and surcharges.

-Other calling cards that did display fees or disclosure information did so in font so small that a magnifying glass was needed.

This bill seeks to put an end to these problems by establishing fair standards and enhancing the disclosure requirements so consumers have a clear understanding of what they're getting when purchasing calling cards.

Legislative history

2014: S.3730- Reported and committed to Finance

2013: S.3730- Referred to Energy & Telecommunications

Fiscal implications

None to the State.

Effective date

This act shall take effect 120 days after it shall have become a law.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.