[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3993 Engrossed in House (EH)]
111th CONGRESS
2d Session
H. R. 3993
_______________________________________________________________________
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 CFR
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 CFR 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. Such term shall not
include--
(A) any retail seller whose only activity with
respect to the sale of prepaid calling cards is point-
of-sale transactions with end-user customers; or
(B) any person whose only activity with respect to
the sale of prepaid calling cards is the transport or
delivery 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 CFR 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 CFR 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 accurately disclose 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, except that the hours of service may not be required
to be disclosed if the provider's customer service is provided
and available 24 hours a day, 7 days per week.
(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) A description of the 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, except as the Commission may
provide under paragraph (3). 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 or other promotional material 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), except as the Commission
may provide under paragraph (3).
(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.
(3) Different location of certain information as determined
by commission.--Notwithstanding the requirements of paragraph
(1), the Commission may determine that some of the information
required to be disclosed pursuant to subsection (a) does not
need to be disclosed on the prepaid calling card, advertising,
or other promotional material, if the Commission by
regulation--
(A) requires the information to be otherwise
disclosed and available to consumers; and
(B) determines that--
(i) such disclosures provide for easy
comprehension and comparison by consumers; and
(ii) the remaining disclosures on the
prepaid calling card, advertising, or other
promotional material, include sufficient
information to allow a consumer to effectively
inquire about or seek clarification of the
services provided by the calling card.
(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 clearly and
conspicuously to the consumer before the completion of such purchase.
(e) No False, Misleading, or Deceptive Disclosures.--No prepaid
calling card, packaging, advertisement, or other promotional material
containing a disclosure required pursuant to this section shall contain
any false, misleading, or deceptive representations relating to the
terms and conditions of the prepaid calling card.
SEC. 4. FEDERAL TRADE COMMISSION AUTHORITY.
(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, 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 for purposes of this Act.
(c) Rulemaking Authority.--Not later than 1 year 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 may prescribe
requirements concerning the order, format, presentation, and design of
disclosures required by this Act and may establish and require the use
of uniform terms, symbols, or categories to describe or disclose fees
and additional charges, if the Commission finds that such requirements
will assist consumers in making purchasing decisions and effectuate the
purposes of this Act. The Commission shall not issue regulations that
otherwise specify 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.
(e) Coordination.--If the Federal Communications Commission
initiates a rulemaking proceeding to establish requirements relating to
the disclosure of terms and conditions of prepaid calling cards, the
Federal Communications Commission shall coordinate with the Federal
Trade Commission to ensure that any such requirements are not
inconsistent with the requirements of this Act and the regulations
issued under subsection (c).
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 an appropriate district court of the United States or
any other court of competent jurisdiction to--
(A) enjoin that practice;
(B) enforce compliance with this Act;
(C) obtain damages, 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.
SEC. 6. APPLICATION.
This Act shall apply to--
(1) any prepaid calling card issued or placed into the
stream of commerce beginning 180 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 180 days after the date on which final
regulations are promulgated pursuant to section 4(c).
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 contains
requirements regarding disclosures to be printed on prepaid calling
cards or packaging unless such requirements are identical to the
requirements of section 3.
SEC. 8. STUDIES.
(a) GAO 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.
(b) FTC Study.--The Commission shall, in consultation with the
Federal Communications Commission, conduct a study of the extent to
which the business practices of the prepaid calling card industry
intended to be addressed by this Act exist in the prepaid wireless
industry and shall submit a report of such study, including
recommendations, if any, to Congress not later than 3 years after the
date of enactment of this Act.
Passed the House of Representatives June 23, 2010.
Attest:
Clerk.
111th CONGRESS
2d Session
H. R. 3993
_______________________________________________________________________
AN ACT
To require accurate and reasonable disclosure of the terms and
conditions of prepaid telephone calling cards and services.