[Congressional Record Volume 144, Number 71 (Thursday, June 4, 1998)]
[Extensions of Remarks]
[Page E1016]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                THE ANTI-CRAMMING PROTECTION ACT OF 1998

                                 ______
                                 

                            HON. BART GORDON

                              of tennessee

                    in the house of representatives

                         Thursday, June 4, 1998

  Mr. GORDON. Mr. Speaker, I rise today to introduce important consumer 
protection legislation, H.R. 3990, the Gordon and Dingell Anti-Cramming 
Protection Act of 1998. This bill will prevent unauthorized charges 
from showing up on a consumer's telephone bill, or ``cramming'' as this 
practice has been dubbed.
  Cramming is the fastest rising subject of fraud, according to the 
National Fraud Information Center. It has risen from the twelfth on the 
list of most frequent frauds to fourth. The FCC has received nearly 
2000 complaints, and these are largely under-reported numbers.
  In most instances of cramming, unauthorized charges are billed every 
month as a ``Miscellaneous Charges and Credits'' entry on the local 
phone bill. I am concerned that cramming will tarnish the integrity of 
the local phone bill as an option for billing competitive 
telecommunications services, and hope that it does not lead to 
selective billing. That way, customers will continue to have 
competitive choices when ordering telecommunications services.
  Approximately 32 million of these ``Miscellaneous'' transactions are 
processed for residential customers--that is one out of every 6 
Americans. Some of these charges are for long-distance calling plans 
like 5-cent Sundays that come with a $3.00 monthly fee. Other charges 
are for enhanced telecommunications services, Internet Access, calling 
card fees, paging services or telecommunications equipment like caller-
ID boxes. The fraudulent or ``crammed'' charges seem to threaten the 
legitimate products and services that are billed in the same manner, 
except without consent.
  In my home state of Tennessee, the Tennessee Regulatory Authority has 
recently handled over 100 cramming complaints--resulting in the removal 
of over $11,000 in charges from consumers' phone bills.
  One of my constituents, Mark Cole, of Smyrna, Tennessee, was crammed 
when an unauthorized charge for a calling card plan appeared as $9.02 
charge on his local phone bill every month. As it turns out, while 
shopping one day, his wife filled out a contest entry form. However, 
the fine print was illegible. By signing the contest entry form, she 
was unknowingly enrolled in a new calling card plan with a monthly fee. 
It took at least three months and help from the Tennessee Regulatory 
Authority before the charges were removed.
  I have been an advocate for consumer protection and of maintaining 
the integrity of local telephone billing for several years. I first 
became involved when constituents began complaining about extraordinary 
high charges for calls to 1-900 numbers.
  Cramming has emerged in a similar fashion as the fraud that once 
plagued the 900 Number Industry. As the author of the Telephone 
Disclosure and Dispute Resolution Act (TDDRA), the bill that regulates 
the 900 Numbers Industry, I know that, it serves as a basis for 
cleaning up the cramming problem. That is why my bill adds a new Title 
to TDDRA and will prohibit this deceptive practice.
  Allow me to share a few highlights from my legislation. The Anti-
Cramming Prevention Act:
  Ensures that the subscriber has knowingly consented to any purchase 
or charges that appear in the miscellaneous section of their phone 
bill.
  Requires the service or product to be clearly listed and described on 
the phone bill.
  Permits consumers to block blocking for miscellaneous charges, where 
cramming appears, at their request.
  Requires the names and phone numbers of the Service Provider and any 
third party billing company to be printed on bill for the consumer's 
information.
  Entitles consumers that have been crammed to an automatic refund or 
credit within 90 days of the billing date.
  Orders the Federal Trade Commission to prescribe rules and procedures 
for the resolution of disputes of unauthorized charges reported after 
the first 90 days.
  Cramming is a spreading problem nationwide, and must be stopped. Mr. 
Speaker, I encourage all of my colleagues that care about consumer 
protection to sign on as a co-sponsor to the Anti-Slamming Protection 
Act.

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