[Congressional Record (Bound Edition), Volume 156 (2010), Part 8]
[House]
[Pages 11369-11372]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  CALLING CARD CONSUMER PROTECTION ACT

  Ms. MATSUI. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 3993) to require accurate and reasonable disclosure of the 
terms and conditions of prepaid telephone calling cards and services, 
as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3993

       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

[[Page 11370]]

     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.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
California (Ms. Matsui) and the gentleman from Kentucky (Mr. Whitfield) 
each will control 20 minutes.
  The Chair recognizes the gentlewoman from California.


                             General Leave

  Ms. MATSUI. Madam Speaker, I ask unanimous consent that all Members 
have 5 legislative days in which to revise and extend their remarks and 
include extraneous material in the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from California?
  There was no objection.
  Ms. MATSUI. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, I rise in strong support of H.R. 3993, the Calling 
Card Consumer Protection Act. I want to thank Mr. Engel for introducing 
this important piece of legislation, and Chairmen Waxman and Rush for 
their leadership in guiding the bill through the committee.
  I am pleased that the House is taking up this important bipartisan 
measure

[[Page 11371]]

which will prevent fraud and abuse in the prepaid calling card 
industry. The bill was voice-voted out of the Energy and Commerce 
Committee.
  American consumers spend billions of dollars on prepaid calling 
cards. These cards are generally marketed to a particular group of 
consumers, including immigrants, college students, seniors, and 
military personnel. Unfortunately, the prepaid calling card market is 
rife with fraudulent and deceptive practices. Many prepaid calling 
cards fail to deliver the full number of advertised minutes. Cards 
often contain hidden charges, such as connection fees, maintenance 
fees, and disconnect fees, as well as inconsistent rates per minute.
  In short, consumers often find that because of misleading 
information, inconsistent claims, and buried disclosures, they are left 
with an insufficient product with little or no recourse. To address 
these issues and protect American consumers, H.R. 3993 will require 
calling card providers and distributors to clearly and conspicuously 
disclose all relevant information so that consumers can make informed 
choices.

                              {time}  1240

  These disclosures would include critical information such as contact 
information for the provider, the number of minutes available or the 
dollar value of the card.
  Importantly, H.R. 3993 would mean the end of hidden fees in the 
prepaid calling card market. Entities would be required to disclose all 
fees, charges, limitations, changes in value, or other terms that 
impact the use of the card.
  Consumers who purchase prepaid calling cards should get what they pay 
for. If they don't, consumers should have recourse, and bad actors 
should face tough enforcement.
  I urge my colleagues to support H.R. 3993, and I reserve the balance 
of my time.
  Mr. WHITFIELD. I yield myself such time as I may consume.
  Madam Speaker, I rise today in support of H.R. 3993, the Calling Card 
Consumer Protection Act. We have a lot of students and military 
personnel around this country who depend on prepaid calling cards. 
Unfortunately, we have discovered that the majority of prepaid cards 
only deliver 50 to 60 percent of the minutes advertised. While a 
private enterprise certainly has the right to shape its business model 
as it sees fit, it does not have the right to misinform and to mistreat 
customers with exorbitant hang-up fees and maintenance fees, and as I 
said, many people who have prepaid cards simply do not know what they 
actually provide them.
  That is why H.R. 3993 is so important. It is going to go a long way 
toward preventing these occurrences in the future. This legislation 
will ensure that consumers are better informed by requiring an accurate 
and reasonable disclosure of the terms and conditions of prepaid 
telephone calling cards and services.
  Under the bill, prepaid calling card providers would have to clearly 
disclose how many minutes they offer and the prices for those minutes. 
They would also have to clearly disclose any additional fees levied on 
the consumer as well as the card's expiration date and other relevant 
information.
  I want to especially thank my colleagues on the other side of the 
aisle--and certainly Mr. Engel, who introduced this bill--for working 
so closely with the minority on this important issue. Because of our 
working together, we have a bill that, I believe, helps consumers 
without unduly hampering the industry. This legislation includes 
commonsense preemption standards, liability exemptions for retailers, 
which is very important, and, of course, strong protections for the 
consumer.
  I would urge all of my colleagues to support this important 
legislation, and I reserve the balance of my time.
  Ms. MATSUI. Madam Speaker, I yield such time as he may consume to the 
gentleman from New York (Mr. Engel), the sponsor of this bill.
  Mr. ENGEL. I thank the gentlewoman from California, my good friend, 
Congresswoman Matsui, and I thank the gentleman, Mr. Whitfield, for his 
kind remarks.
  Madam Speaker, I stand here in support of my legislation, H.R. 3993, 
the Calling Card Consumer Protection Act.
  I want to thank my good friends Chairman Waxman, who is the chairman 
of our Energy and Commerce Committee; Bobby Rush, who is the chairman 
of the Consumer Protection Subcommittee; as well as Joe Barton and 
George Radanovich, who are the ranking members of the full committee 
and subcommittee.
  As my colleagues have mentioned, calling cards are an invaluable 
resource for a number of people who make frequent long distance or 
overseas calls. Students, members of the Armed Forces, and those whose 
families live outside of the country regularly use these cards to call 
home. The cards are also popular among people who either choose not to 
subscribe to long distance telephone services or who cannot afford 
them. They are a necessary tool for keeping in touch with friends or 
with family members. Calling cards that provide the services that the 
companies advertise can save consumers a great deal of money when they 
call home.
  Unfortunately, as my colleagues have mentioned, as we see all too 
often, a number of unscrupulous companies are failing to keep their 
advertised terms. I first learned of this issue about 3 years ago when 
I heard from a number of constituents who said that their prepaid 
calling cards were not delivering the number of minutes that they 
advertised. In fact, many were not even close to delivering the 
promised number of minutes.
  When I heard about these problems, I purchased a calling card to 
investigate the problem for myself. What shocked me--although, it 
should come as no surprise to anybody now--is that I found the exact 
same problems my constituents were having. One of those companies 
promised me a certain number of minutes, and I found that it was a 
complete fabrication. I did not receive even close to the number of 
minutes that the card advertised. This is when I decided to introduce 
my legislation to ban this practice.
  I have read studies conducted by States' attorneys general as well as 
by independent groups showing that many calling cards provide far fewer 
minutes than are advertised. One study by the Hispanic Institute found, 
on average, that the caller only received about 60 percent of the 
minutes guaranteed by the card. I recently read that the prepaid 
calling card industry takes in $4 billion a year in revenue. If the 
cards are only providing 60 percent of the minutes, each one of us can 
do the math.
  This deception is costing consumers and honest companies hundreds of 
millions of dollars every year. Calling card fraud harms segments of 
the population which are among the most vulnerable to being victimized 
by unscrupulous companies only seeking to make quick profits. Companies 
will target poor, minority, and immigrant populations, and they don't 
stop there. They have even preyed upon our soldiers in Iraq and 
Afghanistan. This is unconscionable.
  As was mentioned, there are so many ways that they use fraudulent 
terms. There are different fees. If you call and don't get anyone home, 
there is a fee. If you call and someone hangs up, there is a fee. There 
are all kinds of hidden fees in terms of what time you can call and 
what day you can call. It just gets ridiculous.
  In an article in BusinessWeek magazine, the author detailed one 
example of a company that marketed toward Spanish-speaking consumers. 
It had packaging with Spanish language information, but the fine print 
that detailed all the various fees they would charge the user was in 
English. When confronted about this deception, the company simply said, 
``We're in America.'' They had the audacity to claim that, even when 
they put Spanish language advertisements in markets with Spanish-
speaking consumers, they could hide all of their fees in English.
  This legislation will put a stop to a number of deceptive practices 
employed by unscrupulous companies. It would simply require calling 
cards and advertisements to include the clear disclosure of all terms, 
conditions, and

[[Page 11372]]

fees in the language in which the calling card is advertised. Just like 
the nutrition information on a box of cereal, consumers should be able 
to quickly and easily compare two products side by side.
  I would strongly encourage all Members to support this bipartisan 
and, as Mr. Whitfield pointed out, well-thought-out legislation. I 
thank everyone for marking up this legislation today.
  Mr. WHITFIELD. Madam Speaker, this issue is so important that I yield 
2 minutes to the gentleman from Indiana (Mr. Burton).
  Mr. BURTON of Indiana. I won't take 2 minutes, Madam Speaker.
  I would just like to say that my colleague who just spoke, Mr. Engel, 
and I became aware of this some time ago when one of the people we 
know, who is in this business, brought to our attention the way some of 
these companies have been so unscrupulous in bilking the public out of 
the minutes that they pay for.
  I am very happy that Congressman Engel has introduced this bill. 
Though, I only wish I'd known about it because I certainly would have 
wanted to have been a cosponsor on it. You may rest assured that I will 
support it, and I hope that all of my colleagues will because it is 
unconscionable that the American people would buy something like this, 
especially military personnel, knowing that they are going to be able 
to call their loved ones, then to find out that they've been 
shortchanged. It's almost a criminal act. I think we ought to look down 
the road. If this is being done intentionally by these calling card 
companies, there possibly ought to be some prosecutions that take 
place.
  Mr. WHITFIELD. Madam Speaker, I yield back the balance of my time.
  Ms. SCHAKOWSKY. Madam Speaker, I rise today in support of H.R. 3993, 
the Calling Card Consumer Protection Act. I congratulate my colleague 
Mr. Engel for introducing it.
  Today, more than 276 million American households--89 percent of the 
U.S. population--have cell phones. But prepaid calling cards remain a 
huge industry--worth $4 billion in 2007.
  They are particularly popular among college students, as well as 
military personnel and immigrant communities--people who frequently 
make international calls.
  My district is one of the most diverse and international in the 
Nation. Almost one-third, 31.6 percent, of my constituents are foreign-
born, first-generation American residents. So calling cards are very 
important for them.
  Unfortunately, the calling card industry is full of deceptive 
advertising and hidden fees. A card may say it is worth 250 minutes, 
but you may get 200 or 100 once you actually use it. Too often, calling 
cards have no information listed about connection fees, varying rates-
per-minute, fees charged each week that you do not use the card, or 
even fees for just hanging up. When those fees aren't fully disclosed 
to consumers, we have a serious problem.
  Earlier this year, in the wake of the devastating earthquake in 
Haiti, I heard from many of my Haitian constituents who were using 
calling cards to try to reach their loved ones. Because of the high 
fees placed on the cards and the lack of clarity about fees and terms, 
they were going through dozens of cards without ever having a call 
connected.
  At the time, I sent letters to a number of calling card companies. I 
encouraged them to reach out to their local Haitian communities and to 
give refunds or issue free cards to customers who bought their cards 
and had the time run out before the call connected.
  Mr. Engel's bill would ensure that fees, rates, expiration dates or 
limitations of calling cards are clearly and fully disclosed to 
consumers. This is an important consumer protection bill and I 
encourage all of my colleagues to support it.
  Ms. SUTTON. Madam Speaker, I rise today in strong support for the 
Calling Card Protection Act (H.R. 3993) and would like to commend Rep. 
Engel for his leadership on this issue.
  The Calling Card Protection Act provides common-sense solutions to 
protect consumers from fraud and abuse.
  When buying a calling card, a consumer should receive the full amount 
of time purchased to talk to their family or friends.
  Unfortunately, because of hidden fees and charges, this is not the 
case.
  H.R. 3993 requires that calling card providers accurately and clearly 
disclose any fees and charges . . . and provide an accurate 
representation of how many minutes the card will provide.
  Madam Speaker, our troops use pre-paid calling cards to call their 
loved ones while they are fighting for us overseas.
  They deserve the full amount of time when calling their family.
  Ms. MATSUI. Madam Speaker, H.R. 3993 will protect consumers from 
faulty and deceptive calling cards.
  Again, I want to thank my colleague, Representative Engel, for his 
work on this legislation.
  This bill is bipartisan, and I urge my colleagues to support this 
legislation.
  I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from California (Ms. Matsui) that the House suspend the 
rules and pass the bill, H.R. 3993, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Ms. MATSUI. Madam Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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