BILL NUMBER: S1372
SPONSOR: SERRANO
 
TITLE OF BILL:
An act to amend the public service law, in relation to requiring disclo-
sure terms relating to prepaid calling cards to be provided in languages
other than English and increasing fines for violations of disclosure
requirements
 
PURPOSE:
To enhance consumer protection in prepaid calling cards.
 
SUMMARY OF PROVISIONS:
Creates subdivision 3-a of section 92-f of the public service law to
require that if any language other than English is used in the sale or
advertising of prepaid calling cards then that language must likewise be
used in disclosure provisions.
- Defines "promotional material."
- Creates a requirement of clear and conspicuous disclosure in the sale
of prepaid calling cards over the Internet.
- Requires any promotional calling rate to state the expiration of the
promotional rate.
- Requires the disclosure of any additional surcharge associated with
the calling rate.
- increases the penalties for any violations of the act.
 
JUSTIFICATION:
Calling cards are often used by new immigrants with families and friends
abroad and by friends and families of military personnel as a means to
make inexpensive phone calls overseas. A study by Consumer Reports
unveiled some of the unscrupulous practices that result in calling card
consumers getting less than what they bargained for. Among a few of
their findings:
- Of the 130 calling cards purchased about three quarters of the cards
didn't disclose the proper rates. - Many of the cards had unclear post-
call fees, periodic fees, and surcharges. - Other calling cards that
did display fees or disclosure information did so in font so small that
a magnifying glass was needed. This bill seeks to put an end to these
problems by establishing fair standards and enhancing the disclosure
requirements so consumers have a clear understanding of what they're
getting when purchasing calling cards.
 
LEGISLATIVE HISTORY:
2013: S.3730- Referred to Energy & Telecommunications
2014: S.3730-Reported and committed to Finance
2015-2016: S.949 -Referred to Energy & Telecommunications
2017-2018: S.3455- Referred to Energy & Telecommunications
2019-2020: S.2065- Referred to Energy & Telecommunications
2021-2022: S.1367- Referred to Energy & Telecommunications
2023-2024: S.810 -Referred to Energy & Telecommunications
 
FISCAL IMPLICATIONS:
None to the State.
 
EFFECTIVE DATE:
This act shall take effect 120 days after it shall have become a law.

Statutes affected:
S1372: 92-f public service law, 92-f(3) public service law, 92-f(8) public service law