What's happening
This bill limits how much cable or internet providers can charge consumers for leasing modems and restricts related fees.
Why it matters
Caps modem lease fees. by limiting providers to charging no more than 16% above the actual cost they paid for the modem—this targets excessive markups that often add up for consumers over time.
Mandates transparency. by requiring providers to disclose the modem’s actual cost to them, the total number of payments a consumer will make, and information on how to buy a modem at retail—empowering consumers to make informed choices and potentially avoid unnecessary leasing.
Limits ongoing charges. by forbidding monthly modem lease fees after 12 months unless a new modem is issued, preventing indefinite rental charges for equipment that may already be “paid off.”
Restricts extra fees. by banning additional or monthly charges for modem maintenance, closing a loophole that could allow providers to circumvent the leasing cap with alternative fees.
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Who cares
Headline styles
Limit Modem Rental Fees
Plain English, a few words. Used as the page title.
Sponsors
12 Co-sponsors
3 Multi-sponsors
History
- Enacting clause stricken
- Referred to consumer affairs and protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Cap Modem Rental Fees
In Senate Committee · Consumer Protection · Sponsor Rich Funke
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5218
2017-2018 Regular Sessions
IN ASSEMBLY
February 7, 2017
Introduced by M. of A. DINOWITZ, GOTTFRIED, ROSENTHAL, SEAWRIGHT, COOK, COLTON, ARROYO, SKOUFIS, STECK, ZEBROWSKI, PEOPLES-STOKES, HOOPER, WALTER -- Multi-Sponsored by -- M. of A. CRESPO, SIMON, TITONE -- read once and referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to establishing a cap that limits the amount a consumer may be charged for leasing a modem from a cable or internet provider
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 article 28-F to read as follows:
ARTICLE 28-F
LEASING OF MODEMS FROM CABLE OR INTERNET PROVIDERS Section 495-a. Purpose.
495-b. Definitions.
495-c. Prohibited acts.
495-d. Enforcement by the attorney general.
495-e. Civil penalty.
§ 495-a. Purpose. The purpose of this article is to limit the amount a cable or internet provider may charge consumers for the lease of a modem.
§ 495-b. Definitions. For the purposes of this article: 1. "Modem" means an electronic device that makes possible the transmission of data to or from a computer via telephone or other communication lines.
2. "Lease" means a contract or instrument conveying property to another for a specified period or for a period determinable at the will of either lessor or lessee in consideration of compensation.
3. "Internet or cable provider" means an organization that provides services for accessing, using, or participating on the internet or cable.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03772-01-7
A. 5218 2
§ 495-c. Prohibited acts. 1. No cable or internet provider shall charge any consumer an amount which is more than sixteen percent over the actual cost of the modem device paid by the provider.
2. A cable or internet provider shall disclose in an initial billing correspondence: (a) the amount the modem costs the provider, (b) how many payments the consumer must make on the modem in total, and (c) information regarding how or where a consumer may purchase a modem at retail.
3. No cable or internet provider shall charge any consumer a monthly fee for the lease or use of a new modem beyond twelve months after the modem has been provided by such cable or internet provider. If an internet or cable provider replaces the customer's existing modem with a new modem during or after such twelve month period an additional twelve month period shall commence.
4. No cable or internet provider shall charge an additional or monthly fee for the maintenance of a provided modem.
§ 495-d. Enforcement by attorney general. Whenever there shall be a violation of this article, application may be made by the attorney general in the name of the people of the state of New York to a court or justice having jurisdiction by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violations; and if it shall appear to the satisfaction of the court or justice that the defendant has, in fact, violated this article, an injunction may be issued by such court or justice, enjoining and restraining any further violation, without requiring proof that any person has, in fact, been injured or damaged thereby. In any such proceeding, the court may make allowances to the attorney general as provided in paragraph six of subdivision (a) of section eighty-three hundred three of the civil practice law and rules.
§ 495-e. Civil penalty. Whenever the court shall determine that a violation of this article has occurred, the court may impose a civil penalty of not more than five hundred dollars for each violation. In connection with any such proposed application, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules.
§ 2. This act shall take effect immediately.
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.