What's happening
This bill limits wireless phone plan termination fees to $50 and imposes penalties for violations in New York State.
Why it matters
Caps termination fees at $50 for wireless phone contracts. , directly limiting how much companies can charge customers who want to end their service early—this could make switching carriers or canceling service more affordable and less risky for consumers.
Imposes a $2,500 civil penalty per violation on wireless providers. , creating a strong financial incentive for companies to comply, which could improve customer service and reduce predatory contract terms.
Applies only to new contracts entered into after the law takes effect. , so existing wireless customers may not benefit immediately, but it sets a new standard for future agreements in the state.
Could encourage more competition and flexibility in the wireless market. , as lower termination fees remove a significant barrier for consumers considering changing providers or plans.
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Who cares
Headline styles
Cap Wireless Termination Fees
Plain English, a few words. Used as the page title.
Sponsors
3 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
3817
2019-2020 Regular Sessions
IN ASSEMBLY
January 31, 2019
Introduced by M. of A. ORTIZ, ARROYO, ZEBROWSKI, RIVERA, CAHILL, JAFFEE, GUNTHER -- Multi-Sponsored by -- M. of A. COLTON, GALEF, 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.
LBD08193-01-9
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.