[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3402 Engrossed in House (EH)]
110th CONGRESS
2d Session
H. R. 3402
_______________________________________________________________________
AN ACT
To require accurate and reasonable disclosure of the terms and
conditions of prepaid telephone calling cards and services.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Calling Card Consumer Protection
Act''.
SEC. 2. DEFINITIONS.
For purposes of this Act, the following definitions apply:
(1) The term ``Commission'' means the Federal Trade
Commission.
(2) The term ``prepaid calling card'' has the meaning given
the term ``prepaid calling card'' by section 64.5000(a) of the
Federal Communications Commission's regulations (47 C.F.R.
64.5000(a)). Such term shall also include calling cards that
use VoIP service or a successor protocol. Such term shall also
include an electronic or other mechanism that allows users to
pay in advance for a specified amount of calling. Such term
shall not include--
(A) calling cards or other rights of use that are
provided for free or at no additional cost as a
promotional item accompanying a product or service
purchased by a consumer;
(B) any card, device, or other right of use, the
purchase of which establishes a customer-carrier
relationship with a provider of wireless
telecommunications service or wireless hybrid service,
or that provides access to a wireless
telecommunications service or wireless hybrid service
account wherein the purchaser has a pre-existing
relationship with the wireless service provider; or
(C) payphone service, as that term is defined in
section 276(d) of the Communications Act of 1934 (47
U.S.C. 276(d)).
(3) The term ``prepaid calling card provider'' has the
meaning given the term ``prepaid calling card provider'' by
section 64.5000(b) of the Federal Communications Commission's
regulations (47 C.F.R. 64.5000(b)). Such term shall also
include--
(A) a provider of a prepaid calling card that uses
VoIP service or a successor protocol; and
(B) a provider of a prepaid calling card that
allows users to pay in advance for a specified amount
of minutes through an electronic or other mechanism.
(4) The term ``prepaid calling card distributor'' means any
entity or person that purchases prepaid calling cards from a
prepaid calling card provider or another prepaid calling card
distributor and sells, re-sells, issues, or distributes such
cards to one or more distributors of such cards or to one or
more retail sellers of such cards.
(5) The term ``wireless hybrid service'' is defined as a
service that integrates both commercial mobile radio service
(as defined by section 20.3 of the Federal Communications
Commission's regulations (47 C.F.R. 20.3)) and VoIP service.
(6) The term ``VoIP service'' has the meaning given the
term ``interconnected Voice over Internet protocol service'' by
section 9.3 of the Federal Communications Commission's
regulations (47 C.F.R. 9.3). Such term shall include any voice
calling service that utilizes a voice over Internet protocol or
any successor protocol in the transmission of the call.
(7) The term ``fees'' includes all charges, fees, taxes, or
surcharges applicable to a prepaid calling card that are--
(A) required by Federal law or regulation or order
of the Federal Communications Commission or by the laws
and regulations of any State or political subdivision
of a State; or
(B) expressly permitted to be assessed under
Federal law or regulation or order of the Federal
Communications Commission or under the laws and
regulations of any State or political subdivision of a
State.
(8) The term ``additional charge'' means any charge
assessed by a prepaid calling card provider or prepaid calling
card distributor for the use of a prepaid calling card, other
than a fee or rate.
(9) The term ``international preferred destination'' means
one or more specific international destinations named on a
prepaid calling card or on the packaging material accompanying
a prepaid calling card.
SEC. 3. REQUIRED DISCLOSURES OF PREPAID CALLING CARDS.
(a) Required Disclosure.--Any prepaid calling card provider or
prepaid calling card distributor shall disclose clearly and
conspicuously the following information relating to the terms and
conditions of the prepaid calling card:
(1) The name of the prepaid calling card provider and such
provider's customer service telephone number and hours of
service.
(2)(A) The number of domestic interstate minutes available
from the prepaid calling card and the number of available
minutes for all international preferred destinations served by
the prepaid calling card at the time of purchase; or
(B) the dollar value of the prepaid calling card, the
domestic interstate rate per minute provided by such card, and
the applicable per minute rates for all international preferred
destinations served by the prepaid calling card at the time of
purchase.
(3)(A) The applicable per minute rate for all individual
international destinations served by the card at the time of
purchase; or
(B) a toll-free customer service number and website (if the
provider maintains a website) where a consumer may obtain the
information described in subparagraph (A) and a statement that
such information may be obtained through such toll-free
customer service number and website.
(4) The following terms and conditions pertaining to, or
associated with, the use of the prepaid calling card:
(A) Any applicable fees associated with the use of
the prepaid calling card.
(B) A description of any additional charges
associated with the use of the prepaid calling card and
the amount of such charges.
(C) Any limitation on the use or period of time for
which the promoted or advertised minutes or rates will
be available.
(D) Applicable policies relating to refund,
recharge, and any predetermined decrease in value of
such card over a period of time.
(E) Any expiration date applicable to the prepaid
calling card or the minutes available with such calling
card.
(b) Location of Disclosure and Language Requirement.--
(1) Clear and conspicuous.--
(A) Cards.--The disclosures required under
subsection (a) shall be printed in plain English
language (except as provided in paragraph (2)) in a
clear and conspicuous manner and location on the
prepaid calling card. If the card is enclosed in
packaging that obscures the disclosures on the card,
such disclosures also shall be printed on the outside
packaging of the card.
(B) Online services.--In addition to the
requirements under subparagraph (A), in the case of a
prepaid calling card that consumers purchase via the
Internet, the disclosures required under subsection (a)
shall be displayed in plain English language (except as
provided in paragraph (2)) in a clear and conspicuous
manner and location on the Internet website that the
consumer must access prior to purchasing such card.
(C) Advertising and other promotional material.--
Any advertising for a prepaid calling card that
contains any representation, expressly or by
implication, regarding the dollar value, the per minute
rate, or the number of minutes provided by the card
shall include in a clear and conspicuous manner and
location all the disclosures described in subsection
(a).
(2) Foreign languages.--If a language other than English is
prominently used on a prepaid calling card, its packaging, or
in point-of-sale advertising, Internet advertising, or
promotional material for such card, the disclosures required by
this section shall be disclosed in that language on such card,
packaging, advertisement, or promotional material.
(c) Minutes Announced, Promoted, or Advertised Through Voice
Prompts.--Any information provided to a consumer by any voice prompt
given to the consumer at the time the consumer uses the prepaid calling
card relating to the remaining value of the calling card or the number
of minutes available from the calling card shall be accurate, taking
into account the application of the fees and additional charges
required to be disclosed under subsection (a).
(d) Disclosures Required Upon Purchase of Additional Minutes.--If a
prepaid calling card permits a consumer to add value to the card or
purchase additional minutes after the original purchase of the prepaid
calling card, any changes to the rates or additional charges required
to be disclosed under subsection (a) shall apply only to the additional
minutes to be purchased and shall be disclosed to the consumer before
the completion of such purchase.
SEC. 4. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.
(a) Unfair and Deceptive Act or Practice.--A violation of section 3
shall be treated as a violation of a rule defining an unfair or
deceptive act or practice prescribed under section 18(a)(1)(B) of the
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
(b) Authority of the Commission.--The Commission shall enforce this
Act in the same manner and by the same means as though all applicable
terms and provisions of the Federal Trade Commission Act were
incorporated into and made a part of this Act. Notwithstanding any
provision of the Federal Trade Commission Act or any other provision of
law and solely for purposes of this Act, common carriers subject to the
Communications Act of 1934 (47 U.S.C. 151 et seq.) and any amendment
thereto shall be subject to the jurisdiction of the Commission.
(c) Rulemaking Authority.--Not later than 180 days after the date
of enactment of this Act, the Commission shall, in consultation with
the Federal Communications Commission and in accordance with section
553 of title 5, United States Code, issue regulations to carry out this
Act. In promulgating such regulations, the Commission shall--
(1) take into consideration the need for clear disclosures
that provide for easy comprehension and comparison by
consumers, taking into account the size of prepaid calling
cards; and
(2) give due consideration to the views of the Federal
Communications Commission with regard to matters for which that
Commission has particular expertise and authority and shall
take into consideration the views of States.
In promulgating such regulations, the Commission shall not issue
regulations that otherwise affect the rates, terms, and conditions of
prepaid calling cards.
(d) Savings Provision.--Nothing in this Act shall be construed to
limit the authority of the Commission under any other provision of law.
Except to the extent expressly provided in this Act, nothing in this
Act shall be construed to alter or affect the exemption for common
carriers provided by section 5(a)(2) of the Federal Trade Commission
Act (15 U.S.C. 45(a)(2)). Nothing in this Act is intended to limit the
authority of the Federal Communications Commission.
SEC. 5. STATE ENFORCEMENT.
(a) In General.--
(1) Civil actions.--In any case in which the attorney
general of a State, a State utility commission, or other
consumer protection agency has reason to believe that an
interest of the residents of that State has been or is
threatened or adversely affected by the engagement of any
person in a practice that is prohibited under this Act, the
State utility commission or other consumer protection agency,
if authorized by State law, or the State, as parens patriae,
may bring a civil action on behalf of the residents of that
State in a district court of the United States of appropriate
jurisdiction, or any other court of competent jurisdiction to--
(A) enjoin that practice;
(B) enforce compliance with this Act;
(C) obtain damage, restitution, or other
compensation on behalf of residents of the State; or
(D) obtain such other relief as the court may
consider to be appropriate.
(2) Notice to the commission.--
(A) In general.--Before filing an action under
paragraph (1), the State shall provide to the
Commission--
(i) written notice of the action; and
(ii) a copy of the complaint for the
action.
(B) Exemption.--
(i) In general.--Subparagraph (A) shall not
apply with respect to the filing of an action
by a State under this subsection, if the
attorney general or other appropriate officer
determines that it is not feasible to provide
the notice described in that subparagraph
before the filing of the action.
(ii) Notification.--In an action described
in clause (i), the State shall provide notice
and a copy of the complaint to the Commission
at the same time as the State files the action.
(b) Intervention by Commission.--
(1) In general.--On receiving notice under subsection
(a)(2), the Commission shall have the right to intervene in the
action that is the subject of the notice.
(2) Effect of intervention.--If the Commission intervenes
in an action under subsection (a), it shall have the right--
(A) to be heard with respect to any matter that
arises in that action;
(B) to remove the action to the appropriate United
States District Court; and
(C) to file a petition for appeal.
(c) Construction.--For purposes of bringing any civil action under
subsection (a), nothing in this section shall be construed to prevent
an attorney general of a State, a State utility commission, or other
consumer protection agency authorized by State law from exercising the
powers conferred on the attorney general or other appropriate official
by the laws of that State to--
(1) conduct investigations;
(2) administer oaths or affirmations;
(3) compel the attendance of witnesses or the production of
documentary and other evidence; or
(4) enforce any State law.
(d) Action by the Commission May Preclude State Action.--In any
case in which an action is instituted by or on behalf of the Commission
for violation of this Act, or any regulation issued under this Act, no
State may, during the pendency of that action, institute an action
under subsection (a) against any defendant named in the complaint in
that action for violation of this Act or regulation.
(e) Venue; Service of Process.--
(1) Venue.--Any action brought under subsection (a) may be
brought in the district court of the United States that meets
applicable requirements relating to venue under section 1391 of
title 28, United States Code.
(2) Service of process.--In an action brought under
subsection (a), process may be served in any district in which
the defendant--
(A) is an inhabitant; or
(B) may be found.
(f) Limitation.--No prepaid calling card distributor who is a
retail merchant or seller of prepaid calling cards, who, with respect
to such cards, is exclusively engaged in point-of-sale transactions may
be liable for damages in an action authorized under this section unless
such distributor acted with actual knowledge that the act or practice
giving rise to such action is unfair or deceptive and is unlawful under
this Act.
SEC. 6. APPLICATION.
This Act shall apply to--
(1) any prepaid calling card issued or placed into the
stream of commerce beginning 90 days after the date on which
final regulations are promulgated pursuant to section 4(c); and
(2) any advertising, promotion, point-of-sale material or
voice prompt regarding a prepaid calling card that is
disseminated beginning 90 days after the date on which final
regulations are promulgated pursuant to section 4(c).
If the Commission determines that it is not feasible for prepaid
calling card providers or distributors to comply with the requirements
of this Act with respect to prepaid calling cards issued or placed into
the stream of commerce after such 90-day period, the Commission may
extend such period by not more than an additional 90 days.
SEC. 7. EFFECT ON STATE LAWS.
After the date on which final regulations are promulgated pursuant
to section 4(c), no State or political subdivision of a State may
establish or continue in effect any provision of law that prescribes
disclosure requirements with respect to prepaid calling cards unless
such requirements are identical to the requirements of section 3.
SEC. 8. G.A.O. STUDY.
Beginning 2 years after the date on which final regulations are
promulgated pursuant to section 4(c), the Comptroller General shall
conduct a study of the effectiveness of this Act and the disclosures
required under this Act and shall submit a report of such study to
Congress not later than 3 years after the date of enactment of this
Act.
Passed the House of Representatives September 25, 2008.
Attest:
Clerk.
110th CONGRESS
2d Session
H. R. 3402
_______________________________________________________________________
AN ACT
To require accurate and reasonable disclosure of the terms and
conditions of prepaid telephone calling cards and services.