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.

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S7595-2011 Actions

• 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 Meetings

Rules: Jun 21, 2012

S7595-2011 Votes

S7595-2011 Memo

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.

S7595-2011 Text

                      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