What's happening
This bill prohibits "cramming," or unauthorized third-party charges, on telephone and cable bills, and establishes consumer protections against such practices.
Why it matters
Empowers consumers to dispute and avoid payment of unauthorized charges. The bill ensures that customers are not liable for any charges on their phone or cable bills that result from “cramming,” and mandates the immediate removal of such charges upon customer notification.
Creates strict proof and consent requirements for third-party billing. Any third-party wishing to place charges on a customer’s bill must provide clear disclosures, obtain explicit and informed consent, and offer a toll-free number and address for dispute resolution—making it much harder to sneak unauthorized charges onto bills.
Establishes regulatory oversight and penalties. The Public Service Commission is given authority to enforce these protections, create additional verification standards, and penalize companies up to $1,000 per violation, incentivizing compliance and deterring bad actors.
Extends protections to both phone and cable companies offering telephone services. By including cable providers who offer telephone service, the bill closes loopholes and ensures that all major types of customer billing for communication services are covered.
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Who cares
Headline styles
Ban Unauthorized Phone Charges
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Print number 7046a
- Amend and recommit to energy and telecommunications
- 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
7046--A
IN SENATE (Prefiled)
January 3, 2018
Introduced by Sen. PERALTA -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
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-i 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-i to read as follows:
§ 92-i. 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 whom a telephone corporation or its affiliate jointly market services, or otherwise permitted by law, shall be included on any bill or invoice
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01558-05-8
S. 7046--A 2
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 telephone service 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
S. 7046--A 3
(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
Summary of specific provisions
Section 1: Amends, section 92-d of the Public Service Law to add consum- er protections against cramming to the list of Public Service Law consumer safeguards that customers must be informed of by local exchange telephone companies.
Section 2: Adds a new section 92-h to the Public Service Law, which prohibits the practice of cramming. "Cramming" is defined as the inclu- sion 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 required 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 addi- tional requirements for verification of customer orders and standards third parties must meet to be authorized to request inclusion of charges on telephone bills.
Section 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.
Section 4: Enables the Public Service Commission to enforce the provisions of this act as related to telephone service offered by cable television companies.
Section 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 consumer's 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 consum- ers.
Prior legislative history
2017: S501 - Referred to Energy and Telecommunications/A2426 - Passed Assembly 2016: S1639 - Referred to Energy and Telecommunications/A392 - Passed Assembly 2015: S1639 - Referred to Energy and Telecommunications/A392 - Passed Assembly 2014: 57288 - Referred to Energy and Telecommunications/A1795 - Passed Assembly 2013: 57288 - Referred to Energy and Telecommunications/A1795 - Passed Assembly
Fiscal implications
None.
Effective date
This act shall take effect on the one hundred eightieth (180) day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.