S7595A-2011: Restricts pay-per-call prize schemes


Same as: A4365A-2011 / Versions: S7595-2011 S7595A-2011
Print HTML Page / Print Original Bill Format / / Read or Leave Comments

Prohibits pay-per-call prize schemes from charging more for the call than that charged by a telephone corporation regulated by the appropriate regulatory commission for the same call.
Sponsor: FUSCHILLO
Law Section: General Business Law / Law: Amd S369-ee, Gen Bus L

S7595A-2011 Actions

S7595A-2011 Meetings

Rules: Jun 21, 2012

S7595A-2011 Calendars

Active List: Jun 21, 2012 , Floor Calendar: Jun 19, 2012 , Floor Calendar: Jun 20, 2012 , Floor Calendar: Jun 21, 2012

S7595A-2011 Votes

VOTE: COMMITTEE VOTE: - Rules - Jun 21, 2012

Ayes (22): Skelos, Farley, Fuschillo, Hannon, Johnson, Larkin, LaValle, Libous, Marcellino, Maziarz, Nozzolio, Saland, Sampson, Breslin, Dilan, Duane, Hassell-Thompson, Krueger, Parker, Perkins, Smith, Stewart-Cousins
Ayes W/R (2): Seward, Montgomery
Excused (1): Alesi

S7595A-2011 Memo

BILL NUMBER:S7595A

TITLE OF BILL:
An act
to amend the general business law, in relation to restricting
pay-per-call services

PURPOSE:
To prohibit the practice of holding a contest in which the
pay-per-call service, which is needed to claim the prize, charges a
higher fee for the transmission of the call as assessed by a
telephone corporation regulated by the public service commission.

SUMMARY OF PROVISIONS:
Amends Section 369-ee of the General Business
law bay adding a new subdivision 2-a to make it unlawful for any
person, firm or corporation to offer a consumer a prize, if in order
to claim the prize, the consumer must call a pay-per-call service
where the charge for such service is greater than the charge for the
transmission of the call as assessed by a telephone corporation
regulated by the public service commission.

JUSTIFICATION:
Every year, thousands of misleading phone calls are automatically
placed to consumers, by a person, firm, or corporation leading them
to believe, they had won a contest. In order to claim their prize,
which could be anything from "new watch" to a "35mm camera", they are
told that they have to place a return phone call to a given number.
In most cases, the cost of the return phone call costs up to $9.95 a
minute resulting in an excessive phone bill, which ends up being more
expensive than the prize itself.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect 30 days after the date on
which it shall have become law.

S7595A-2011 Text

 S T A T E   O F   N E W   Y O R K
 
7595--A
I N SENATE June 6, 2012
Introduced by Sen. FUSCHILLO -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection - committee discharged and said bill committed to the Committee on Rules -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the general business law, in relation to restricting pay-per-call services THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM BLY, DO ENACT AS FOLLOWS:


Section 1.

Section 369-ee of the general business law is amended by adding a new subdivision 2-a to read as follows:
2-A. PRIZE CLAIMS BY PAY-PER-CALL SERVICES. IT SHALL BE UNLAWFUL FOR ANY PERSON, FIRM OR CORPORATION TO OFFER A CONSUMER A PRIZE, IF IN ORDER TO CLAIM THE PRIZE, THE CONSUMER MUST CALL A PAY-PER-CALL SERVICE WHERE THE CHARGE FOR SUCH PAY-PER-CALL SERVICE IS GREATER THAN THE SERVICE CHARGE AUTHORIZED BY THE APPROPRIATE REGULATORY COMMISSION. AS USED IN THIS SUBDIVISION "PAY-PER-CALL SERVICE" MEANS ANY TELEPHONE SERVICE FOR WHICH THE CALLING PARTY IS ASSESSED, BY VIRTUE OF COMPLETING THE CALL, A CHARGE FOR WHICH THE CALLER PAYS A PER-CALL OR PER-TIME CHARGE.

S 2. This act shall take effect on the thirtieth day after it shall have become a law. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08552-02-2

*By contributing or voting you agree to the Terms of Participation and Privacy Policy and verify you are over 13.

Discuss!

blog comments powered by Disqus