NY State Senate Bill 2017-S7046A

Senate Bill S7046A

2017-2018 Legislative Session

Prohibits the imposition of any charge or fee on the telephone bill of a consumer when such fee is imposed by a third party, without the consent of the consumer

download bill text pdf

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 06, 2018	print number 7046a
Feb 06, 2018	amend and recommit to energy and telecommunications
Jan 03, 2018	referred to energy and telecommunications

Bill Amendments

Original

A (Active)

2017-S7046 - Details

See Assembly Version of this Bill:: A2426
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §§92-d & 227-a, add §92-i, Pub Serv L; add §390-bb, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A10464
2011-2012: A3224, A10256
2013-2014: S7288, A1795
2015-2016: S1639, A392
2019-2020: S2665, A9624

2017-S7046 - Summary

Prohibits the imposition of any charge or fee on the telephone bill of a consumer when such fee or charge is imposed by a third party, unless the consumer explicitly agrees to the nature and amount of such fee or charge; makes the unauthorized imposition of such a fee void and unenforceable; directs the public service commission to enforce such provisions.

2017-S7046 - Sponsor Memo

                                
 
BILL NUMBER: S7046

SPONSOR: PERALTA
 
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: S7288 - Referred to Energy and Telecommunications/A1795 - Passed
Assembly
2013: S7288 - 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.

2017-S7046 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7046
 
                             I N  S E N A T E
 
                                (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  Telecommuni-
   cations
 
 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  ASSEM-
 BLY, 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 tele-
 marketing 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.
                                                            LBD01558-02-7

 S. 7046                             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 CHARG-
 ES 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 AUTHOR-
 IZED  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  AFFIL-
 IATE  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  TELE-
 PHONE 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                             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  CUSTOM-
 ER.
   §  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.

2017-S7046A (ACTIVE) - Details

See Assembly Version of this Bill:: A2426
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §§92-d & 227-a, add §92-i, Pub Serv L; add §390-bb, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A10464
2011-2012: A3224, A10256
2013-2014: S7288, A1795
2015-2016: S1639, A392
2019-2020: S2665, A9624

2017-S7046A (ACTIVE) - Summary

2017-S7046A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7046A

SPONSOR: PERALTA
 
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.

2017-S7046A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7046--A
 
                             I N  S E N A T E
 
                                (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  Telecommuni-
   cations  --  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 ASSEM-
 BLY, 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 tele-
 marketing 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 CHARG-
 ES 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 AUTHOR-
 IZED  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  AFFIL-
 IATE  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  CUSTOM-
 ER.
   §  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.

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