S430-2013 Actions

• Jan 9, 2013: REFERRED TO CONSUMER PROTECTION

S430-2013 Memo

BILL NUMBER:S430

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:
2011/12 - S.1346
2009/10 - S.1079/A.4954 - Passed Senate

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.

S430-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          430
 2013-2014 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 9, 2013
 
 Introduced  by  Sen.  DILAN  -- 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.
 LBD00571-01-3

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