[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3993 Reported in House (RH)]

                                                 Union Calendar No. 290
111th CONGRESS
  2d Session
                                H. R. 3993

                          [Report No. 111-507]

    To require accurate and reasonable disclosure of the terms and 
      conditions of prepaid telephone calling cards and services.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 3, 2009

  Mr. Engel introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

                             June 15, 2010

       Additional sponsors: Mr. Burton of Indiana and Ms. Tsongas

                             June 15, 2010

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           November 3, 2009]


_______________________________________________________________________

                                 A BILL


 
    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. 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 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 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 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 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 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.

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.
                                                 Union Calendar No. 290

111th CONGRESS

  2d Session

                               H. R. 3993

                          [Report No. 111-507]

_______________________________________________________________________

                                 A BILL

    To require accurate and reasonable disclosure of the terms and 
      conditions of prepaid telephone calling cards and services.

_______________________________________________________________________

                             June 15, 2010

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed