Short title

This Act may be cited as the

Calling Card Consumer Protection Act

FCC regulations requiring disclosures of terms and conditions of prepaid calling cards

(a)

In general

Not later than 1 year after the date of the enactment of this Act, the Commission shall promulgate regulations that require prepaid calling card providers and prepaid calling card distributors to accurately disclose the terms and conditions applicable to prepaid calling cards. (b)

Information required To be disclosed

The regulations promulgated under subsection (a) shall require disclosure of the following information with respect to a 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 Web site (if the provider maintains a Web site) 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 Web site. (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. (c)

Manner of disclosures

The regulations promulgated under subsection (a) shall include the following requirements with respect to the manner of the disclosures required by such regulations: (1)

Clear and conspicuous

Such disclosures shall be made in a clear and conspicuous manner and location, as follows: (A)

Cards

Such disclosures 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, such disclosures shall be displayed in plain English language (except as provided in paragraph (2)) in a clear and conspicuous manner and location on the Internet Web site that the consumer must access prior to purchasing such card. (C)

Advertising and other promotional material

Except as the Commission may provide under paragraph (3), such disclosures shall be included in a clear and conspicuous manner and location in 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. (2)

Foreign languages

If a language other than English is prominently used on a prepaid calling card or its packaging or in any advertising or other promotional material for such card, such disclosures shall be made in that language in or on such card, packaging, advertising, or promotional material. (3)

Different location of certain information as determined by Commission

Notwithstanding paragraph (1), if the Commission determines that some of the information required to be disclosed by the regulations promulgated under subsection (a) does not need to be disclosed in or on the prepaid calling card, packaging, advertising, or other promotional material, the Commission may exclude from such regulations any requirement for the disclosure of such information in that manner, if such regulations— (A)require such information to be otherwise disclosed and available to consumers; (B)provide for easy comprehension and comparison by consumers; and (C)ensure that the remaining disclosures in or on the prepaid calling card, packaging, 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. (d)

Voice prompts

The regulations promulgated under subsection (a) shall, taking into account the application of the fees and additional charges required to be disclosed under such regulations, require the accuracy of any information that— (1)is provided to a consumer by a voice prompt given to the consumer at the time the consumer uses the prepaid calling card; and (2)relates to the remaining value of the calling card or the number of minutes available from the calling card. (e)

Disclosures required upon purchase of additional minutes

The regulations promulgated under subsection (a) shall require that, 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, fees, or additional charges required to be disclosed under such regulations 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. (f)

No false, misleading, or deceptive disclosures

The regulations promulgated under subsection (a) shall prohibit the inclusion of any false, misleading, or deceptive representations relating to the terms and conditions of the prepaid calling card in or on the prepaid calling card, packaging, advertising, or other promotional material containing a disclosure required by such regulations. (g)

Additional authority concerning manner of disclosures

The regulations promulgated under subsection (a) may include requirements concerning the order, format, presentation, and design of the required disclosures and may establish and require the use of uniform terms, symbols, or categories to describe or disclose rates, 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. (h)

Factors for consideration

In promulgating regulations under subsection (a), 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)take into consideration the views of States. (i)

Limitation

In promulgating regulations under subsection (a), the Commission may not specify the rates, fees, or additional charges or the terms and conditions of prepaid calling cards.

Implementation and enforcement by FCC

(a)

Authority of the Commission

The Commission shall implement and enforce this Act in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Communications Act of 1934 (47 U.S.C. 151 et seq.) were incorporated into and made a part of this Act. (b)

Consultation between FCC and FTC

(1)

In general

In promulgating regulations under section 2(a) and in enforcing such regulations, the Commission shall consult with the Federal Trade Commission. (2)

FTC regulations on prepaid calling card disclosures

If the Federal Trade Commission initiates a rulemaking proceeding to establish requirements relating to the disclosure of terms and conditions of prepaid calling cards, the Federal Trade Commission shall consult with the Commission to ensure that any such requirements and the enforcement of any such requirements by the Federal Trade Commission are not inconsistent with the regulations promulgated under section 2(a) and the enforcement of such regulations by the Commission.

Enforcement by States

(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 such State has been or is threatened or adversely affected by the engagement of any person in a practice that is prohibited by a regulation promulgated under section 2(a), 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 such State in an appropriate district court of the United States or any other court of competent jurisdiction to— (A)enjoin such practice; (B)enforce compliance with such regulation; (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 this subsection, 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 such 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 such action; (B)to remove the action to the appropriate district court of the United States; 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 such 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 a regulation promulgated under section 2(a), no State may, during the pendency of such action, institute an action under subsection (a) against any defendant named in the complaint in the action instituted by or on behalf of the Commission for any violation of such regulation alleged in such complaint.

Effect on other law

(a)

FCC Authority

Nothing in this Act shall be construed to— (1)limit the authority of the Commission, under any other provision of law, with respect to disclosure of the terms and conditions of prepaid calling cards; or (2)affect any proceeding initiated by the Commission prior to the date of the enactment of this Act with respect to disclosure of the terms and conditions of prepaid calling cards. (b)

Preemption of State law

After the date on which final regulations are promulgated under section 2(a), 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 the packaging of prepaid calling cards or included in advertising or other promotional material with respect to prepaid calling cards, unless such requirements are identical to the requirements of such regulations.

Studies

(a)

GAO Study

Beginning 2 years after the date on which final regulations are promulgated under section 2(a), the Comptroller General of the United States shall conduct a study of the effectiveness of this Act and the disclosures required under this Act and shall submit a report on such study to Congress not later than 3 years after the date of the enactment of this Act. (b)

FCC Study

The Commission shall, in consultation with the Federal Trade 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 commercial mobile service industry and shall submit a report on such study, including recommendations, if any, to Congress not later than 3 years after the date of the enactment of this Act.

Definitions

(a)

Incorporation of definitions from Communications Act of 1934

In this Act, a term that is defined in section 3 of the Communications Act of 1934 (47 U.S.C. 153) shall have the meaning given such term in such section. (b)

Additional definitions

The following additional definitions apply in this Act: (1)

Additional charge

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. (2)

Commercial mobile service

The term commercial mobile service has the meaning given such term in section 332 of the Communications Act of 1934 (47 U.S.C. 332). (3)

Commission

The term Commission means the Federal Communications Commission. (4)

Fees

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 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 Commission or under the laws and regulations of any State or political subdivision of a State. (5)

International preferred destination

The term international preferred destination means one or more specific international destinations named on a prepaid calling card, on the packaging material accompanying a prepaid calling card, or in the advertising or other promotional material with respect to a prepaid calling card. (6)

Prepaid calling card

The term prepaid calling card has the meaning given such term in section 64.5000 of the Commission’s regulations (47 C.F.R. 64.5000). Such term shall also include calling cards that use interconnected 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 commercial mobile service or wireless hybrid service, or that provides access to a commercial mobile service or wireless hybrid service account wherein the purchaser has a pre-existing relationship with the provider; or (C)payphone service (as defined in section 276 of the Communications Act of 1934 (47 U.S.C. 276)). (7)

Prepaid calling card distributor

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. (8)

Prepaid calling card provider

The term prepaid calling card provider has the meaning given such term in section 64.5000 of the Commission’s regulations (47 C.F.R. 64.5000). Such term shall also include— (A)a provider of a prepaid calling card that uses interconnected 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. (9)

Wireless hybrid service

The term wireless hybrid service means a service that integrates both commercial mobile service and interconnected VoIP service.

Date of application

This Act shall apply with respect 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 under section 2(a); and (2)any advertising, other promotional material, or voice prompt regarding a prepaid calling card that is disseminated beginning 180 days after the date on which final regulations are promulgated under section 2(a).