[Congressional Record Volume 154, Number 156 (Sunday, September 28, 2008)]
[Extensions of Remarks]
[Pages E2113-E2114]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  CALLING CARD CONSUMER PROTECTION ACT

                                 ______
                                 

                               speech of

                       HON. JANICE D. SCHAKOWSKY

                              of illinois

                    in the house of representatives

                      Thursday, September 25, 2008

  Ms. SCHAKOWSKY. Madam Speaker, I rise today in support of H.R. 3402, 
the Calling Card Consumer Protection Act. After years of deceptive and 
abusive marketing practice by the calling card industry, I am pleased 
to be here today to offer protection to our constituents who rely on 
the cards to stay in touch with their loved ones. The victims of 
calling card fraud are often the most vulnerable among us--they are 
low-income, immigrants, military families--in short, the ones who can 
least afford it. I think this is sensible legislation, and I thank my 
colleague and friend Congressman Eliot Engel for all of his hard work 
to enact this bill.
  I am proud to represent a diverse constituency and am proud to 
support the Calling Card Consumer Protection Act to crack down on those 
abuses. Too many people are lured in by promises of cheap overseas 
calls but end up getting less than half of what they paid

[[Page E2114]]

for. These cards use hidden fees so creative and outlandish that they 
would almost be funny if they weren't so awful, and the practice must 
stop.
  The legislation before us today goes a long way toward solving this 
problem. It would require calling cards to clearly present what 
services they offer and any additional fees associated with the card. 
Most importantly, if someone buys a card that says it's good for 250 
minutes, they will receive those 250 minutes. Consumers deserve to get 
what they paid for.
  While I support H.R. 3402, I do want to express my concern with a 
couple of provisions in the bill, especially those that involve State 
standards and enforcement. Many States and the Federal Trade 
Commission, FTC, already have tools to address the many abuses related 
to the sale of prepaid calling cards. As we heard from the FTC 
Commissioner in our hearing, those States are at the forefront of 
cracking down on deceptive practices. Therefore, we need to be very 
careful about preempting States from setting or enforcing standards 
related to the cards.
  I believe that the disclosure preemption provision in H.R. 3402 
should set a floor, not a ceiling, and allow those States that want to 
enact stricter disclosure standards to do so. Illinois is on the 
forefront of policing calling cards, and our State law mandates strong 
disclosures that should not be preempted with weaker ones. I also hope 
that the FTC will solicit input from the States as they work to 
establish minimum standards.
  Finally, I also believe that retailers should be held responsible for 
selling cards that do not meet the Federal and State standards. 
Illinois State law requires retailers to obtain a proof that the 
underlying carrier is certified, with the underlying carrier and all 
resellers responsible for ensuring that the required disclosures are 
made. This is not a burdensome step for retailers to ensure that the 
product they sell is in compliance with the law, and this is a 
commonsense provision that should be included in H.R. 3402 as well.
  I look forward to working with Rep. Engel, my colleagues on 
Committee, and my friends on the Senate Commerce Committee to improve 
this bill and to see it enacted into law.

                          ____________________