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S4515Senate2019-2020 Session

Increase Telemarketing Fines

Official title

“Raises the maximum fine for persons who violate the law regulating telemarketing to twenty thousand dollars”

Status
In Senate Committee
Consumer Protection
Impact
4/10
Low
Passage
0%

Bill progress

Step 2 of 7

In committee · Consumer Protection

What's happening

This bill increases the maximum fine for telemarketing law violations in New York from $11,000 to $20,000 per violation.

Why it matters

  1. Greater financial penalties may deter telemarketers from violating consumer protection laws, potentially reducing unwanted or illegal calls.

  2. Consumers could experience stronger enforcement of telemarketing regulations, as higher fines may incentivize authorities to pursue more cases.

  3. The increased maximum fine reflects the growing seriousness with which New York State views telemarketing abuses, signaling a policy shift to prioritize consumer protections.

  4. Businesses engaging in telemarketing may face higher risks and costs if they do not comply with regulations, potentially leading to improved industry practices.

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Who cares

Headline styles

Increase Telemarketing Fines

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Joseph A. Griffo

Senator · Senate District 47

1 Co-sponsor

History

  1. Referred to consumer protection
  2. Referred to consumer protection

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

4515

2019-2020 Regular Sessions

IN SENATE

March 13, 2019

Introduced by Sens. GRIFFO, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law, in relation to raising the maximum fine for persons who violate the law regulating telemarketing

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Paragraph a of subdivision 12 of section 399-z of the general business law, as amended by chapter 369 of the laws of 2012, is amended to read as follows:

a. Where it is determined after hearing that any person has violated one or more provisions of this section, the secretary, or any person deputized or so designated by him or her may assess a fine not to exceed [eleven] twenty thousand dollars for each violation.

§ 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD01136-01-9

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend the general business law, in relation to raising the maximum fine for persons who violate the law regulating telemarketing

Purpose

The purpose of this bill is to deter any would-be violators of the Do Not Call Registry.

Summary of provisions

Section 1 amends the general business law by increasing the fine applied to violators of the Do Not Call Registry to $20,000.

Section 2 sets the effective date.

Justification

The Do Not Call Registry has been an effective tool in curbing the number of unwanted calls most households receive from companies wishing to solicit information or business. However, there are a number of actors who are violating this law in the hopes of gaining business from unwitting participants. This is a calculated decision that they are making as a part of their overall business model. Their calculus is that they will earn more business by violating the law than they will lose in fines from people reporting their misdeeds. This bill aims to further curb these entities from violating the Do Not Call Registry by increas- ing the fine per violation by almost double, thereby encouraging further compliance with the law.

Legislative history

2017-18 - S. 3152 - Rules Committee/A. 3734 - Consumer Affairs Commit- tee. 2016 - S. 6553 Rules Committee/A. 9442 - Consumer Affairs Committee.

Fiscal implications

None.

Effective date

Immediate.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.