Prohibits cell phone service providers from requiring a customer to renew his or her service plan when adding a new phone line to such plan; and prohibits such provider from extending the time of services originally agreed to under contract.

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S1346-2011 Actions

• Jan 4, 2012: REFERRED TO CONSUMER PROTECTION
• Jan 6, 2011: REFERRED TO CONSUMER PROTECTION

S1346-2011 Memo

BILL NUMBER:S1346

TITLE OF BILL:
An act
to amend the general business law, in relation to protecting the rights
of cell phone users

PURPOSE:
Eliminates charges for the cancellation of an additional phone line and
allows for the addition of a new phone line without renewing the
original contract.

SUMMARY OF PROVISIONS:
Section 1 of the bill adds a new Section 390-d to the General Business
Law, which provides that cell phone service providers cannot cause a
user to extend their existing contract simply because they have added an
additional line to their current plan. This section also prohibits cell
phone providers from charging a user for canceling a phone line from
their account, as long as the primary line is kept active.

EXISTING LAW:
None.

JUSTIFICATION:
Cell phones have become almost as common as household phones. Most
couples and families purchase contracts and add additional lines for
their loved ones, so they can keep in touch. It is often the case that
lines are added to a customer's existing contract (a child becomes a
teenager, or a single adult becomes involved in a relationship), and
just as frequently, lines are canceled (a couple breaks up, or a child
graduates college and gets their own phone).

Cell phone providers currently charge customers a cancellation fee when
they drop an additional line which was added to their primary phone
line. Similarly, it is standard practice by most cell phone providers to
require that customers, when adding an additional phone line to their
contract, cause an automatic renewal of their contract.

The monthly cost for cell phone service, the additional charges that are
frequently incurred, and the length of the cell phone contracts, are all
quite extensive. Customers should not have to pay for the addition or
removal of a line, as long as they maintain their main line.

LEGISLATIVE HISTORY:
2009-10 - S.1079/A.4954 - Passed Senate
2007/08 - S.1497/A.6996 - Referred to Consumer Protection
2005/06 - S.8493/A.12081 - Referred to Consumer Affairs & Protection

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.

S1346-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    1346

                         2011-2012 Regular Sessions

                              I N  SENATE

                               January 6, 2011
                                 ___________

  Introduced  by Sens. DILAN, DIAZ, HASSELL-THOMPSON, PARKER -- 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 protecting  the
    rights of cell phone users

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. The general business law is amended by adding a new section
  390-d to read as follows:

    S 390-D. CELL PHONE USERS' RIGHTS TO NOT RENEW. 1. ANY  PERSON,  FIRM,
  CORPORATION,  OR  OTHER  ENTITY  THAT HAS ENTERED INTO A CONTRACT WITH A
  CUSTOMER TO PROVIDE SUCH CUSTOMER WITH CELLULAR  PHONE  SERVICES  FOR  A
  FEE,  SHALL NOT TREAT THE CUSTOMER'S ADDITION OF A NEW PHONE LINE TO THE
  EXISTING SERVICE PLAN AS THE RENEWAL OF SUCH PLAN, AND SHALL NOT  EXTEND
  THE LENGTH OF TIME OF SERVICES ORIGINALLY AGREED TO UNDER CONTRACT.
    2.  ANY  SUCH  PERSON,  FIRM,  CORPORATION,  OR OTHER ENTITY SHALL NOT
  IMPOSE ON THE CUSTOMER ANY SERVICE CHARGE, ADDITIONAL FEE OR  ANY  OTHER
  ADDITIONAL  COST  FOR THE CANCELLATION OF ANY PHONE LINE INCLUDED IN THE
  CUSTOMER'S SERVICE PLAN OTHER THAN THE PRIMARY PHONE LINE OF SUCH PLAN.
    S 2. This act shall take effect immediately.




   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD02669-01-1