ASSEMBLY, No. 1722
STATE OF NEW JERSEY
INTRODUCED MARCH 18, 1996
By Assemblymen IMPREVEDUTO and COHEN
An Act concerning cellular mobile radio communications carriers and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Cellular mobile radio communications carrier" means any person owning, operating, controlling or managing a cellular mobile radio communications system.
"Cellular mobile radio communications system" means any facility within the State authorized by the Federal Communications Commission to provide cellular mobile radio communications service on a for-hire basis to the public.
2. Cellular mobile radio communications service constitutes a service within the term "merchandise" as defined in section 1 of P.L.1960, c.39 (C.56:8-1), and the provisions of P.L.1960, c.39 (C.56:8-1 et seq.) concerning the advertisement and sale of merchandise shall have the same application to the advertisement and sale of cellular mobile radio communications service.
3. It shall be an unlawful practice for a cellular mobile radio communications carrier to:
a. Advertise or sell automatic renewal contracts for cellular mobile radio communications service to the public in this State. As used in this section, automatic renewal contract means a contract that extends for a period of more than one year without the express written authorization from the purchaser of the contract to extend the contract for more than one year; or
b. To fail to provide a purchaser of a contract for cellular mobile radio communications service with a form, on at least an annual basis and no later than 60 days before the end of the contract year, on which the purchaser may indicate whether or not to renew the contract for an additional year.
4. This act shall take effect immediately .
STATEMENT
This bill would supplement the State's Consumer Fraud Act, P.L.1960, c.39 (C.56:8-1 et seq.), to include cellular mobile radio communications service within the definition of "merchandise" in section 1 of the act; the bill would thereby subject the advertisement and sale of cellular mobile radio communications service, commonly referred to as cellular telephone service, to the penalties set forth in the consumer fraud law.
The bill specifically deems automatic renewal contracts for cellular mobile radio communications service as an unlawful practice under the Consumer Fraud Law. As used in this bill, "automatic renewal contracts" refers to contracts for cellular phone service that extend beyond one year without the express written authorization from the purchaser of the contract.
The bill would also require any cellular mobile radio communications carrier (CMRC) to provide each customer with a form, on at least an annual basis and no later than 60 days before the end of the contract year, on which the customer may elect to either continue or discontinue service with the CMRC for an additional year. The bill is intended to address the problem experienced by customers in this State who find that they are billed automatically for an additional year of cellular phone service by a CMRC without their consent.
Prohibits advertisement or sale of automatic renewal contracts for cellular telephone service.