What's happening
This bill prohibits unauthorized third-party charges ("cramming") on telephone and cable bills and establishes consumer protections and enforcement.
Why it matters
Strengthens consumer rights by making customers not liable for unauthorized or deceptive third-party charges. this means if you find an unexplained fee from a third party on your phone or cable bill, you don’t have to pay it, and it must be removed once you report it.
Imposes strict proof requirements on third parties before charges can appear on your bill. , including clear disclosures, explicit customer consent, and accessible dispute resolution methods—raising the bar for what counts as a valid charge.
Empowers regulators to enforce compliance and issue additional rules. , giving state authorities the tools to prevent, investigate, and penalize violations, which could deter fraudulent billing practices and increase corporate accountability.
Applies protections to both telephone and cable companies that provide phone services. , expanding coverage beyond traditional phone companies and closing loopholes that might be exploited in bundled or converged service offerings.
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Who cares
Headline styles
Ban Unauthorized Phone Bill Fees
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to energy and telecommunications
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.
Ban Unauthorized Phone Bill Fees
In Senate Committee · Energy And Telecommunications · Sponsor Frank Skartados
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
501
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. SQUADRON -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
AN ACT to amend the public service law and the general business law, in relation to consumer protections against cramming
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The opening paragraph of section 92-d of the public service law, as separately amended by chapters 546 and 547 of the laws of 2000, is amended to read as follows:
Each local exchange telephone company shall inform its customers of the provisions of section ninety-two-h of this article, sections three hundred ninety-nine-p [and], three hundred ninety-nine-z and three hundred ninety-nine-pp of the general business law, and article ten-B of the personal property law, as such provisions relate to the rights of consumers with respect to cramming, telemarketers, sellers, the no telemarketing sales call statewide registry and automatic dialing-announcing devices, by means of:
§ 2. The public service law is amended by adding a new section 92-h to read as follows:
§ 92-h. Cramming prohibited. 1. For the purposes of this section, "cramming" means the inclusion and imposition of charges on the invoice or bill of a customer from a telephone corporation at the request of a third party or billing aggregator that (a) were not authorized by the customer, or (b) if authorized, were obtained through misleading or deceptive means.
2. A customer shall not be liable for charges appearing on the invoice or bill of a telephone corporation that are the result of cramming. No charges for any products or services, other than those provided by the telephone corporation, its affiliates, a third party video provider with
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01558-01-7
S. 501 2
whom a telephone corporation or its affiliate jointly market services, or otherwise permitted by law, shall be included on any bill or invoice of a customer, unless the third party requesting the payment of such charges retains and provides upon request valid proof that:
(a) the customer was provided with clear and conspicuous disclosure of all material terms and conditions of the product or service being offered, including but not limited to all initial and recurring charges and the fact that such charges shall appear on the customer's telephone bill;
(b) after receiving clear and conspicuous disclosure as provided in paragraph (a) of this subdivision, the customer explicitly consented to the nature and amount of such charges; and
(c) the third party offering the product or service or an agent of such third party provided the customer with a toll-free telephone number the customer may call and an address to which the customer may write to resolve any billing dispute.
3. Any charges for third party products or services that are included on a bill or invoice by a telephone corporation without the consent of the customer having been obtained as provided in subdivision two of this section shall be void and unenforceable, and shall be removed from the bill or invoice upon notice from such customer.
4. The commission shall supervise and ensure compliance with the provisions of this section, and may promulgate any rules and regulations it deems necessary or desirable to ensure such compliance, including but not limited to any additional requirements for verification of customer orders and any additional standards that third parties or agents must meet to be authorized to receive payment through the inclusion of charges on bills or invoices of telephone corporations. Any failure by a telephone corporation to comply with the provisions of this section may be redressed as provided in subdivision three of section ninety-six of this article or as otherwise authorized by law.
§ 3. The general business law is amended by adding a new section 390- bb to read as follows:
§ 390-bb. Cramming prohibited. 1. For the purposes of this section, "cramming" means the inclusion and imposition of charges on the invoice or bill for telephone service to a customer from a cable television company, as defined in section two hundred twelve of the public service law, that provides telephone service to customers in New York, at the request of a third party or billing aggregator that (a) were not authorized by the customer, or (b) if authorized, were obtained through misleading or deceptive means.
2. A customer shall not be liable for charges appearing on the invoice or bill of a cable television company for telephone service that are the result of cramming. No charges for any products or services, other than those provided by the cable television company, its affiliates, a third party video provider with whom a cable television company or its affiliate jointly market services, or otherwise permitted by law, shall be included on any bill or invoice for telephone service, unless the third party requesting the payment of such charges retains and provides upon request valid proof that:
(a) the customer was provided with clear and conspicuous disclosure of all material terms and conditions of the product or service being offered, including but not limited to all initial and recurring charges and the fact that such charges shall appear on the customer's for telephone service bill;
S. 501 3
(b) after receiving clear and conspicuous disclosure as provided in paragraph (a) of this subdivision, the customer explicitly consented to the nature and amount of such charges; and
(c) the third party offering the product or service or an agent of such third party provided the customer with a toll-free telephone number the customer may call and an address to which the customer may write to resolve any billing dispute.
3. Any charges for third party products or services that are included on a bill or invoice for telephone service by a cable television company without the consent of the customer having been obtained as provided in subdivision two of this section shall be void and unenforceable, and shall be removed from the bill or invoice upon notice from such customer.
§ 4. Subdivision 1 of section 227-a of the public service law, as added by chapter 83 of the laws of 1995, is amended to read as follows:
1. Every cable television company, and all officers, agents and employees of any cable television company shall obey, observe and comply with every order, direction or requirement made by the commission, under authority of this article, so long as the same shall be and remain in force. Except as provided in subdivision two of this section, any cable television company which shall violate any provision of this article or section three hundred ninety-bb of the general business law, or which fails, omits or neglects to obey, observe or comply with any order or any direction or requirement of the commission, shall forfeit to the people of the state of New York a sum to be set by the commission not to exceed one thousand dollars for each and every offense; every violation of any such order or direction or requirement, or of this article or section three hundred ninety-bb of the general business law, shall be a separate and distinct offense, and, in case of a continuing violation, every day's continuance thereof shall be a separate and distinct offense.
§ 5. This act shall take effect on the one hundred eightieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public service law and the general business law, in relation to consumer protections against cramming
Purpose or general idea of bill
This bill will prohibit the practice of "cramming," the addition of charges on a telephone bill by a third party without the informed consent of the consumer.
Summary of specific provisions
§ 1 amends, § 92-d of the Public Service Law (PSL) to add consumer protections against cramming to the list of PSL consumer safeguards that customers must be informed of by local exchange telephone companies.
§ 2. adds a new PSL § 92-h prohibiting the practice of cramming. "Cramming" is defined as the inclusion or imposition of charges on a telephone bill at the request of a third party that were not authorized by the customer or, if authorized, were obtained through misleading or deceptive means. Charges for goods or services (other than those provided by the telephone company or its affiliates) may be billed only if the customer explicitly consented to the nature and amount of such charges after having received clear and conspicuous disclosure of all terms and conditions. In addition, the third party or its agent must provide the customer with a toll-free number and address for resolution of any billing dispute. Any charges imposed without the consumer's consent having been obtained as provided above are declared void and unenforceable, and the telephone corporation is repaired to remove them upon notice from the customer that such charges ware not authorized.
The Public Service Commission shall supervise and ensure compliance, and may adopt any necessary rules and regulations, which may include additional requirements for verification of customer orders and standards third parties must meet to be authorized to request inclusion of charges on telephone bills.
§3 amends the General Business Law by adding a new section 390-bb applying the same prohibitions to cable television companies, many of which operate telephone services. The cramming provisions in this section only apply to telephone service provided by a cable television company, and not any other services such companies offer. This section also rests enforcement powers with the Public Service Commission.
§ 4 enables the Public Service Commission to enforce the provisions of this act as related to telephone service offered by cable television companies.
§5 sets forth the effective date.
Justification
Cramming refers to the inclusion on a telephone bill of unauthorized, deceptive or misleading third-party fees or charges. This bill is a proactive effort to prevent the addition of fraudulent charges to consumers bills, to provide consumers with the needed tools to contest instances of cramming, and to ensure that the burden of proof is on the company seeking to add fees and charges, and not on individual consumers.
Prior legislative history
2015-2016: S1639/A392 - REFERRED TO ENERGY AND TELECOMMUNICATIONS/ Passed Assembly 2014: S7288/A1795 - REFERRED TO ENERGY AND TELECOMMUNICATIONS/ Passed Assembly 2012: A10256 - Passed Assembly
Fiscal implications
None.
Effective date
Shall take effect on the 180th day after enactment.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.