What's happening
This bill limits wireless phone plan termination fees to $50 and imposes penalties on providers who exceed this amount.
Why it matters
Reduces financial risk for consumers who want to change or end their wireless phone plans. , making it easier for people to switch providers or adjust their service without facing unexpectedly high fees.
Creates a strong incentive for wireless providers to comply. , since violations can result in substantial civil penalties ($2,500 per incident), signaling serious enforcement and potentially deterring unfair business practices.
Applies to all new wireless service agreements after the law’s effective date. , meaning future customers will be uniformly protected, and companies must update their contracts and billing systems accordingly.
Could increase competition among wireless providers. , as lower termination fees may encourage customers to shop around for better deals, potentially leading to improved service quality or lower prices overall.
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Who cares
Wireless telephone customers
The bill would cap termination fees at $50 for service plans entered into on or after its effective date.
Wireless telephone service providers doing business in New York
Providers would face a $2,500 civil penalty for each violation of the termination-fee cap.
Consumer advocates
The bill would limit the fees customers could face for ending a wireless service plan, with the cap taking effect 30 days after the bill becomes law.
Headline styles
Cap Phone Cancellation Fees
Plain English, a few words. Used as the page title.
Sponsors
4 Multi-sponsors
History
- Referred to consumer affairs and protection
- Referred to consumer affairs and protection
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4457
2017-2018 Regular Sessions
IN ASSEMBLY
February 2, 2017
Introduced by M. of A. ORTIZ, ARROYO, ZEBROWSKI, RIVERA, CAHILL, JAFFEE, GUNTHER -- Multi-Sponsored by -- M. of A. COLTON, GALEF, HOOPER, PEOPLES-STOKES -- read once and referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to prohibiting wireless telephone service plan termination fees in excess of fifty dollars
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general business law is amended by adding a new section 399-k to read as follows:
§ 399-k. Wireless telephone service plan termination fees. 1. No plan for the provision of wireless telephone service by a wireless telephone service provider doing business in this state to a wireless telephone service customer shall contain any provision which shall impose a fee for terminating such plan in an amount greater that fifty dollars.
2. Any wireless telephone service provider that violates the provisions of this section shall be subject to a civil penalty in the amount of two thousand five hundred dollars for each occurrence.
§ 2. This act shall take effect on the thirtieth day after it shall have become a law and shall apply to all wireless telephone service plans entered into on or after such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08968-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.