[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4176 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4176

 To amend the Communications Act of 1934 to protect consumers against 
    `spamming', `slamming', and `cramming', and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 25, 1998

  Mr. Markey introduced the following bill; which was referred to the 
                         Committee on Commerce

_______________________________________________________________________

                                 A BILL


 
 To amend the Communications Act of 1934 to protect consumers against 
    `spamming', `slamming', and `cramming', and for other purposes.

    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 ``Digital Jamming Act of 1998''.

                    TITLE I--PREVENTION OF SPAMMING

SEC. 101. EXTENSION OF JUNK FAX REMEDIES TO COMMERCIAL EMAIL

    Section 227 of the Communications Act of 1934 (47 U.S.C. 227) is 
amended--
            (1) in subsection (a), by adding at the end the following 
        new paragraphs:
            ``(5) The term `unsolicited electronic mail message' means 
        any electronic mail message that is addressed and sent to a 
        recipient with whom the initiator does not have an existing 
        relationship and has been sent by the initiator without the 
        express consent of the recipient.
            ``(6) The term `unsolicited commercial electronic mail 
        message' means any unsolicited electronic mail message that is 
        sent for the purpose of encouraging the purchase or rental of, 
        or investment in, property, goods, or services.
            ``(7) The term `electronic mail service provider' means any 
        entity that provides subscribers the ability to send or receive 
        electronic mail.
            ``(8) The term `published policy' means, with respect to an 
        electronic mail service provider's policy on unsolicited 
        electronic mail messages, that such policy is available upon 
        request in written form at no charge or is displayed 
        conspicuously through an online notice on the Internet home 
        page of the electronic mail service provider.'';
            (2) in subsection (c)(3)--
                    (A) by striking ``If the Commission determines to 
                require such a database,'' and inserting ``If the 
                Commission determines to require such a database 
                pursuant to paragraph (2), or at any time subsequent to 
                the proceeding required by paragraph (1) determines 
                that a database is required to protect subscribers from 
                telephone solicitations or unsolicited electronic mail 
                messages,'';
                    (B) by striking ``and'' at the end of subparagraph 
                (K);
                    (C) by striking the period at the end of 
                subparagraph (L) and inserting a semicolon; and
                    (D) by adding at the end the following new 
                subparagraphs:
                    ``(M) require each electronic mail service 
                provider, in accordance with regulations prescribed by 
                the Commission, to inform subscribers for electronic 
                mail service of the opportunity to provide 
                notification, in accordance with such regulations, that 
                such subscribers objects to receiving unsolicited 
                commercial electronic mail messages; and
                    ``(N) specify the methods by which each electronic 
                mail service subscriber shall be informed, by the 
                electronic mail service provider that provides such 
                service to such subscriber, of (i) the subscriber's 
                right to give or revoke a notification of objection 
                under subparagraph (M), and (ii) the methods by which 
                such right may be exercised by the subscriber.'';
            (3) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively;
            (4) by inserting after subsection (d) the following new 
        subsection:
    ``(e) Restrictions on the Use of Unsolicited Commercial Electronic 
Mail Messages.--
            ``(1) Information about sender; right to reply.--It shall 
        be unlawful for any person within the United States--
                    ``(A) to initiate an unsolicited commercial 
                electronic mail message unless such message contains--
                            ``(i) the name, street address, electronic 
                        mail address, and telephone number of the 
                        person who initiates transmission of the 
                        message;
                            ``(ii) the name, street address, electronic 
                        mail address, and telephone number of the 
                        person who created the content of the message;
                            ``(iii) a reply electronic mail address, 
                        conspicuously displayed, where recipients may 
                        send a reply to indicate a desire not to 
                        receive any further messages; or
                            ``(iv) information on how recipients may 
                        exercise the rights established pursuant to 
                        subsection (c)(3);
                    ``(B) to initiate an unsolicited commercial 
                electronic mail message to any recipient who has 
                previously indicated a desire not to receive such 
                messages by sending a reply described in subparagraph 
                (A)(iii)); or
                    ``(C) to initiate an unsolicited commercial 
                electronic mail message unless such message contains 
                Internet routing information that is accurate, is valid 
                according to prevailing standards for Internet 
                protocols, and correctly reflects the actual message 
                routing.
            ``(2) Enforcement of voluntary cyberrules regarding 
        spamming.--
                    ``(A) Prohibition.--No subscriber of an electronic 
                mail service provider shall use, or cause to be used, 
                the electronic mail service or equipment in violation 
                of that electronic mail service's published policy 
                prohibiting or restricting the use of its service or 
                equipment for the initiation of an unsolicited 
                commercial electronic mail message.
                    ``(B) Enforcement by providers.--Any subscriber who 
                violates subparagraph (A) for the initiation of an 
                unsolicited commercial electronic mail message shall be 
                liable to the electronic mail service provider for 
                damages in an amount equal to $50 for each of the 
                provider's subscribers to whom such message was 
                transmitted.''; and
            (5) in subsection (f)(1) (as redesignated by paragraph 
        (3))--
                    (A) by striking ``or'' at the end of subparagraph 
                (C);
                    (B) by striking the period at the end of 
                subparagraph (D) and inserting ``; or''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(E) the making of unsolicited commercial 
                electronic mail messages.''.

             TITLE II--PREVENTION OF SLAMMING AND CRAMMING

SEC. 201. LIABILITY TO SUBSCRIBERS; AUTHORITY OF STATES.

    (a) Amendment.--Section 258 of the Communications Act of 1934 (47 
U.S.C. 258) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Liability for Charges After Slamming.--
            ``(1) Liability.--Any telecommunications carrier that 
        violates the verification procedures described in subsection 
        (a) and that collects charges for telephone exchange service or 
        telephone toll service from a subscriber shall be liable, in 
        accordance with such procedures as the Commission may 
        prescribe--
                    ``(A) to the carrier previously selected by the 
                subscriber in an amount equal to all charges paid by 
                such subscriber after such violation; and
                    ``(B) to the subscriber in an amount equal to twice 
                the amount of all charges paid by such subscriber after 
                such violation.
            ``(2) Effect on other laws.--The remedies provided by 
        subsection (b) are in addition to any other remedies available 
        by law.
    ``(c) Prohibition of and Liability for Cramming.--
            ``(1) Prohibition.--No telecommunications carrier 
        (including billing aggregators and service providers) shall 
        submit for billing on bills for telecommunications services 
        unauthorized services or products.
            ``(2) Liability to subscriber.--Any telecommunication 
        carrier (including billing aggregators and service providers) 
        that violates paragraph (1) and collects charges for 
        unauthorized services or products from a subscriber shall be 
        liable to such subscriber in an amount equal to twice the total 
        amount of charges paid by such subscriber after such violation. 
        The remedies provided by this subsection are in addition to any 
        other remedies available by law.
    ``(c) Actions by States.--
            ``(1) Authority of states.--Whenever the attorney general 
        of a State, or an official or agency designated by a State, has 
        reason to believe that any person has engaged or is engaging in 
        a pattern or practice of (A) effecting changes in a 
        subscribers' selections of a provider of telephone exchange 
        service or telephone toll service in violation of this section 
        or the regulations prescribed under this section, or (B) 
        submitting for billing on bills for telecommunications 
        services, and collecting for, unauthorized services or 
        products, shall the State may bring a civil action on behalf of 
        its residents to enjoin such calls, an action to recover for 
        actual monetary loss or receive $500 in damages for each 
        violation, or both such actions. If the court finds the 
        defendant willfully or knowingly violated such regulations, the 
        court may, in its discretion, increase the amount of the award 
        to an amount equal to not more than 3 times the amount 
        available under the preceding sentence.
            ``(2) Exclusive jurisdiction of federal courts.--The 
        district courts of the United States, the United States courts 
        of any territory, and the District Court of the United States 
        for the District of Columbia shall have exclusive jurisdiction 
        over all civil actions brought under this subsection. Upon 
        proper application, such courts shall also have jurisdiction to 
        issue writs of mandamus, or orders affording like relief, 
        commanding the defendant to comply with the provisions of this 
        section or regulations prescribed under this section, including 
        the requirement that the defendant take such action as is 
        necessary to remove the danger of such violation. Upon a proper 
        showing, a permanent or temporary injunction or restraining 
        order shall be granted without bond.
            ``(3) Rights of commission.--The State shall serve prior 
        written notice of any such civil action upon the Commission and 
        provide the Commission with a copy of its complaint, except in 
        any case where such prior notice is not feasible, in which case 
        the State shall serve such notice immediately upon instituting 
        such action. The Commission shall have the right (A) to 
        intervene in the action, (B) upon so intervening, to be heard 
        on all matters arising therein, and (C) to file petitions for 
        appeal.
            ``(4) Venue; service of process.--Any civil action brought 
        under this subsection in a district court of the United States 
        may be brought in the district wherein the defendant is found 
        or is an inhabitant or transacts business or wherein the 
        violation occurred or is occurring, and process in such cases 
        may be served in any district in which the defendant is an 
        inhabitant or where the defendant may be found.
            ``(5) Investigatory powers.--For purposes of bringing any 
        civil action under this subsection, nothing in this section 
        shall prevent the attorney general of a State, or an official 
        or agency designated by a State, from exercising the powers 
        conferred on the attorney general or such official by the laws 
        of such State to conduct investigations or to administer oaths 
        or affirmations or to compel the attendance of witnesses or the 
        production of documentary and other evidence.
            ``(6) Effect on state court proceedings.--Nothing contained 
        in this subsection shall be construed to prohibit an authorized 
        State official from proceeding in State court on the basis of 
        an alleged violation of any general civil or criminal statute 
        of such State.
            ``(7) Limitation.--Whenever the Commission has instituted a 
        civil action for violation of regulations prescribed under this 
        section, no State may, during the pendency of such action 
        instituted by the Commission, subsequently institute a civil 
        action against any defendant named in the Commission's 
        complaint for any violation as alleged in the Commission's 
        complaint.
            ``(8) Definition.--As used in this subsection, the term 
        `attorney general' means the chief legal officer of a State.''.

SEC. 202. NTIA STUDY OF THIRD PARTY VERIFICATION AND AUTHENTICATION.

    (a) Study Required.--The National Telecommunications and 
Information Administration of the Department of Commerce shall conduct 
a study of the feasibility and desirability of establishing third party 
verification and authentication systems for preventing illegal changes 
in telephone subscriber carrier selections. The study shall include--
            (1) an analysis of the cost of establishing a national, 
        independent database or clearinghouse to authorize and verify 
        changes in carrier selections;
            (2) the additional cost to carriers, per change in carrier 
        selection, to fund the ongoing operation of such an independent 
        database or clearinghouse;
            (3) the cost and feasibility of implementing such databases 
        or clearinghouses at the State level; and
            (4) the advantages and disadvantages of utilizing 
        independent databases or clearinghouses for authorizing and 
        authenticating carrier selection changes.
    (b) Report Required.--Within 180 days after the date of enactment 
of this Act, the National Telecommunications and Information 
Administration shall submit to the Committee on Commerce of the House 
of Representatives and Committee on Commerce, Science, and 
Transportation of the Senate the results of the study required by 
subsection (a).
                                 <all>