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.
- Jun 21, 2012: SUBSTITUTED BY A4365A
- Jun 19, 2012: ORDERED TO THIRD READING CAL.1319
- Jun 18, 2012: PRINT NUMBER 7595A
- Jun 18, 2012: AMEND AND RECOMMIT TO RULES
- Jun 18, 2012: COMMITTEE DISCHARGED AND COMMITTED TO RULES
- Jun 6, 2012: REFERRED TO CONSUMER PROTECTION
S7595-2011 MeetingsRules: Jun 21, 2012
VOTE: COMMITTEE VOTE: - Rules - Jun 21, 2012
BILL NUMBER:S7595 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.
S T A T E O F N E W Y O R K ________________________________________________________________________ 7595 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 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 SERVICE IS GREATER THAN THE CHARGE FOR THE TRANS- MISSION OF THE CALL AS ASSESSED BY A TELEPHONE CORPORATION REGULATED BY THE PUBLIC SERVICE 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 CALL- ER PAYS A PER-CALL OR PER-TIME CHARGE THAT IS GREATER THAN, OR IN ADDI- TION TO, THE CHARGE FOR TRANSMISSION OF THE CALL. 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. LBD08552-01-1