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S4777Senate2019-2020 SessionSame asA2224

Stop Nuisance Telemarketing Calls

Official title

“Enacts the nuisance call act”

Sponsor Todd KaminskySD-9Affects Public Safety & Consumer Affairs
Status
Signed by Governor
Impact
5/10
Moderate
Outcome
Signed into law

Bill progress

Signed into law

What's happening

The Nuisance Call Act strengthens telemarketing regulations by requiring clear opt-out options and prohibiting the sharing of customer contact information without consent.

Why it matters

  1. Increases consumer control over their data. By requiring explicit written or electronic consent before telemarketers can share, sell, or otherwise make customer contact information available, the bill empowers individuals to better protect their privacy and limits the spread of their data.

  2. Strengthens do-not-call enforcement. By mandating that telemarketers inform customers of their right to be placed on the company-specific do-not-call list during calls, and to immediately end the call if the customer opts out, the bill makes it easier for people to avoid unwanted solicitations.

  3. Improves transparency and oversight. The requirement that telemarketers retain records of their activities for two years enhances accountability, making it easier for regulators to investigate and address violations or patterns of abuse.

  4. Potential for stronger penalties and compliance. The amendments clarify investigative and penalty procedures, making it simpler for authorities to fine violators and enforce compliance, which could reduce nuisance calls and protect consumers more effectively.

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Who cares

Headline styles

Stop Nuisance Telemarketing Calls

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

Sponsors

Primary sponsor
Todd Kaminsky

Senator · Senate District 9

Chair, Environmental Conservation

No co-sponsors yet.

History

  1. Signed chap.572
  2. Delivered to governor
  3. Returned to senate
  4. Passed assembly
  5. Ordered to third reading rules cal.586
  6. Substituted for A2224
  7. Referred to consumer affairs and protection
  8. Delivered to assembly
  9. Passed senateVote 62–0
  10. Advanced to third reading
  11. 2nd report cal.
  12. 1st report cal.551
Show 1 earlier action
  1. Referred to consumer 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.

A2224Assembly

Stop Nuisance Telemarketing Calls

Assembly Floor Calendar · Sponsor Amy Paulin

Impact 5 · Moderate0% to pass

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

4777

2019-2020 Regular Sessions

IN SENATE

March 25, 2019

Introduced by Sen. KAMINSKY -- 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 enacting the "nuisance call act"

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

Section 1. Short title. This act shall be known and may be cited as the "nuisance call act".

§ 2. Subdivisions 9, 10, 11, 12, 13, 14 and 15 of section 399-z of the general business law, subdivisions 9 and 15 as added and subdivisions 10, 11, 12, 13 and 14 as amended by chapter 369 of the laws of 2012, are amended to read as follows:

9. In the case of any telemarketing sales call made by a natural person, the telemarketer or seller shall inform the customer that he or she may request that his or her telephone number be added to the seller's entity specific do-not-call list. If the customer opts to do so, the telemarketer or seller shall immediately end the call and shall add the number called to such list or cause the number called to be added to such list.

10. No telemarketer or seller shall transmit, share, or otherwise make available any customer's contact information, including name, telephone number, or email address, which has been provided to such telemarketer or seller by such customer, to any person, corporation, or other entity without the express agreement of the consumer in writing or in electronic format, unless otherwise required by law, or pursuant to a lawful subpoena or court order.

11. Telemarketers and sellers shall keep for a period of twenty-four months from the date the record is created records relating to its telemarketing activities.

[10.] 12. a. The department shall provide notice to customers of the establishment of the national "do-not-call" registry. Any customer who

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

[ ] is old law to be omitted.

LBD01119-01-9

S. 4777 2

wishes to be included on such registry shall notify the federal trade commission as directed by relevant federal regulations.

b. Any company that provides local telephone directories to customers in this state shall inform its customers of the provisions of this section by means of publishing a notice in such local telephone directories.

[11.] 13. When the department has reason to believe a telemarketer has engaged in repeated unlawful acts in violation of this section, or when a notice of hearing has been issued pursuant to subdivision [twelve] fourteen of this section, the department may request in writing the production of relevant documents and records as part of its investigation. If the person upon whom such request was made fails to produce the documents or records within thirty days after the date of the request, the department may issue and serve subpoenas to compel the production of such documents and records. If any person shall refuse to comply with a subpoena issued under this section, the department may petition a court of competent jurisdiction to enforce the subpoena and such sanctions as the court may direct.

[12.] 14. 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 thousand dollars for each violation.

b. Any proceeding conducted pursuant to paragraph a of this subdivision shall be subject to the state administrative procedure act.

c. Nothing in this subdivision shall be construed to restrict any right which any person may have under any other statute or at common law.

[13.] 15. A person shall not be held liable for violating this section if:

a. the person has obtained a version of the "do-not-call" registry from the federal trade commission no more than thirty-one days prior to the date any telemarketing call is made, pursuant to 16 C.F.R. Section 310.4(b)(1)(iii)(B), and the person can demonstrate that, as part of the person's routine business practice at the time of an alleged violation, it has established, implemented and updated written policies and procedures related to the requirements of this section prior to the date any telemarketing call is made;

b. the person has trained his or her personnel in the requirements of this section; and

c. the person maintains and can produce records demonstrating compliance with paragraphs a and b of this subdivision and the requirements of this section.

[14.] 16. The department shall prescribe rules and regulations to administer this section.

[15.] 17. Severability. If any clause, sentence, paragraph or part of this section shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph or part thereof directly involved in the controversy in which such judgment shall have been rendered.

§ 3. This act shall take effect on the ninetieth 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 general business law, in relation to enacting the "nuisance call act"

Purpose

To offer heightened protections to consumers to curb the nuisance posed by unwanted telemarketing calls.

Summary of provisions

Section one sets out the title of this act as the "Nuisance Call Act."

Read the full memo (701 words)

Section two amends section 399-z of the general business law to require that in the case of any telemarketing sales call made by a natural person, the telemarketer or seller shall inform the customer that he or she may request that his or her telephone number be added to the sell- er's entity specific do-not-call list. If the customer opts to do so, the telemarketer or seller must immediately end the call and must add the number called to such do-not-call list. This section also provides that no telemarketer or seller shall transmit, share, or otherwise make available any customer's contact information, including name, telephone number, or email address, which has been provided to such telemarketer or seller by such customer, to any person, corporation, or other entity without the express agreement of the consumer in writing or in electron- ic format, unless otherwise required by law, or pursuant to a lawful subpoena or court order.

Section three provides the effective date.

Justification

Americans received an estimated 16.3 billion nuisance calls in the first five months of 2018 alone. (1)In the month of September 2018, roughly 4.4 billion robocalls were reported. (2) These numbers continue to rise and over the past year, the number of robocalls received by consumers has increased at rates as a high as 900 million more calls per month as compared with last year. (3) In 2017, only about 3.7% of all calls to cell phones were considered to be nuisance calls. (4) In 2018, that number rose to about 29% and by 2019, it is expected that at least 45% of all calls to cell phones will be nuisance calls. (5)

These figures illustrate an urgency and necessity to enact legislation to protect consumers from the ever-increasing nuisance posed by these unwanted calls. In 2001, the New York State Do Not Call Law took effect; allowing consumers to place their landline and mobile telephone numbers in a central national Do-Not-Call Registry to reduce the number of prerecorded telemarketing calls they receive.

However, there is a need to expand this protection to live telemarketing calls. With the establishment of the Do-Not-Call Registry targeting prerecorded calls, there h.as been an increased incidence of consumers receiving live telemarketing calls.

This legislation will help to close that loophole and to lessen the nuisance posed by telemarketing calls by offering heightened protections to consumers. It is uniquely tailored to cover unsolicited phone calls intending to result in a direct sale of goods or services by a telemark- eter to a consumer, consistent with the definitions of "telemarketer" and "telemarketing sales call" set forth in the General Business Law.

In the case of any live telemarketing sales call, the telemarketer will have to inform the customer that he or she may request that their number be added to the seller's entity specific do-not-call list. If the person opts to do so, the call must immediately end and the telemarketer must add the person's number to their do-not-call list.

In addition, this legislation will address the common issue of telemark- eters selling individual's contact information, leading consumers to receive calls they never intended nor asked to receive. Telemarketers would be prohibited from sharing a customer's contact in formation with any other person, corporation, or entity unless the telemarketer has obtained their express consent in writing.

As the incidence of nuisance calls continues to rise, the protections set out in this bill are necessary in order to safeguard consumers' personal information and to curb the number of unwanted calls they receive.

Legislative history

New bill.

Fiscal implications

None

Effective date

This act shall take effect on the ninetieth day after it shall have become a law. (1) See https://www.cnbc.com/20 18/06/06/ americans-got16- billion-robo- calls-this-year- heres-how-to-stop-them.html (2) See https://www.consumerreports.org/ robocalls/best-ways-to fightro- bocalls/ (3) See https://www.nytimes.com/2018/05/ 06/your-money/robocal is- rise- illegal.html (4) See https://www.washingtonpost.com/ technology/2018/09/19/nearly-half-cellphone-calls-will-be-scams- byreportsays/?utm_term=.6dcOe b2b0198. (5) Id.

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