[Federal Register Volume 59, Number 175 (Monday, September 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22565]


[[Page Unknown]]

[Federal Register: September 12, 1994]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 64

[CC Docket No. 93-22; FCC 94-200]

 

Interstate Pay-Per-Call Services

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Commission adopted this Order on Reconsideration to rule 
on petitions for reconsideration of a Report and Order which amended 
the Commission's pay-per-call regulations to implement the Telephone 
Disclosure and Dispute Resolution Act (TDDRA). The Commission affirmed 
these rules with minor modifications, consistent with the TDDRA. The 
rules are intended to maximize telephone subscribers' protection 
against fraudulent and abusive practices without unduly burdening 
common carriers and providers of legitimate pay-per-call services.

EFFECTIVE DATE: October 12, 1994.

FOR FURTHER INFORMATION CONTACT:
Mary Romano, Enforcement Division, Common Carrier Bureau, (202) 418-
0960.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's Order 
on Reconsideration in CC Docket No. 93-22 [FCC 94-200], adopted August 
2, 1994 and released August 31, 1994. The full text of the Order on 
Reconsideration is available for inspection and copying during normal 
business hours in the FCC Reference Center, Room 239, 1919 M Street 
NW., Washington, D.C. The full text of this Order on Reconsideration 
may also be purchased from the Commission's duplicating contractor, 
International Transcription Services, 2100 M Street NW., Suite 140, 
Washington, D.C. 20037, (202) 857-3800. For a document relating to this 
Order on Reconsideration, see a proposed rule involving interstate 
information services published elsewhere in this issue.

Summary of Order on Reconsideration

    1. On August 2, 1994, the Commission adopted an Order on 
Reconsideration in CC Docket No 93-22 (released August 31, 1994; FCC 
94-200) (Order) ruling on petitions for reconsideration of a Report and 
Order, 58 FR 44769 (Aug. 25, 1993), which amended the Commission's pay-
per-call regulations to implement the Telephone Disclosure and Dispute 
Resolution Act of 1992, 47 CFR 228 (TDDRA). As explained below, the 
Commission affirmed, with minor modifications, regulations governing 
interstate pay-per-call and similar information services.
    2. The Commission modified Sec. 64.1506 to clarify that services 
specifically exempted from the TDDRA's definition of ``pay-per-call'' 
need not be offered exclusively through 900 numbers. The Commission 
stated that it had not intended to negate the express exclusions from 
pay-per-call status enacted by Congress in the TDDRA, and, accordingly, 
amended Sec. 64.1506 to require that any interstate services possessing 
the basic pay-per-call attributes set forth in the statute and 
Sec. 64.1501(a)(1)-(2), and not subject to the exclusions stated in 
that section, must be offered only through telephone numbers beginning 
with the 900 service access code.
    3. The Commission affirmed Sec. 64.1508(c) which requires local 
exchange carriers (LECs) to file federal tariffs for services that 
offer subscribers the option of blocking access to 900 numbers and also 
declined to permit LECs to satisfy the federal tariffing requirement by 
cross-referencing applicable state tariffs. The Commission found that 
it could implement the TDDRA's mandate that blocking services be 
reasonably priced most effectively by requiring the filing of federal 
tariffs. Federal tariffs assure that the Commission need not review 
individual state tariffs or await subscriber complaints to ensure that 
900 number blocking is offered to subscribers at a reasonable charge.
    4. Finally, the Commission affirmed, with minor modifications, 
Sec. 64.1510(b) of its rules. This section requires common carriers 
billing subscribers for information services provided on either a 
collect basis or under a presubscription or comparable arrangement to 
separate the charges for those services from charges for ordinary 
telephones services, to the extent possible, and include in each bill 
assessing such charges a brief statement of subscriber rights and 
responsibilities. Although the Commission recognized that these 
provisions are not required by the TDDRA, it concluded that they are 
necessary to protect consumers from fraudulent and deceptive practices 
associated with the provision of interstate information services.
    5. The Commission noted that subscriber complaints filed with the 
Common Carrier Bureau over the past several months confirm and 
highlight the need for separate billing and consumer notification 
requirements, particularly when 800 numbers are used to provide 
information services, purportedly under a presubscription or comparable 
arrangement. The Commission's rules require that a valid 
presubscription arrangement be established as a contractual agreement 
between a caller and an information provider (IP) after the caller is 
fully informed of the rates and conditions for using the information 
service and agrees to take the service on the terms offered. The IP 
must require use of a personal identification number (PIN) to guard 
against access by unauthorized persons. However, the complaints 
received by the Commission indicate that information providers 
apparently read the Automatic Number Identification (ANI) of the 
originating telephone line and issue a PIN to the caller without 
ascertaining that that individual is both the subscriber to the 
originating line and legally capable of entering into a contractual 
agreement. The subscriber to the originating line is then charged for a 
call to the IP on the basis of ANI and, unless the bill segregates such 
charges, the subscriber to the originating line may not be aware that 
charges for information services have been billed. The Commission 
emphasized that this practice does not establish a valid 
presubscription arrangement and that unless an IP has ascertained that 
the subscriber to the originating line is, in fact, the caller who 
agreed to purchase information services, the IP may not use ANI in 
order to bill charges to the originating line. The Commission also 
noted that LECs have often used confusing or misleading language in 
displaying charges for 800 number information services and, 
accordingly, directed carriers to render bills that accurately reflect 
the charges assessed.
    6. The Commission also ruled that, while IPs generally appear to 
have abandoned collect calls as a means of providing information 
services, LECs should include in their billing contracts a requirement 
that entities on whose behalf collect calls are billed take reasonable 
steps to segregate any collect calls for information services.
    7. The Commission amended Sec. 64.1510(b) to remove the requirement 
that carriers inform subscribers billed for collect or presubscribed 
information services that 900 number blocking is available upon request 
since that fact could confuse subscribers because 900 number blocking 
would not block collect calls or most presubscribed services, which are 
typically offered through 800 numbers. The Commission also modified 
slightly the terminology used in the rule to reflect more clearly the 
type of calls it was designed to cover. Thus, the amended rule deletes 
the term ``interstate tariffed collect information services'' and 
instead refers to ``interstate information services provided on a 
collect basis.'' To ensure consistency, Sections 64.1507(c) and 
64.1511(a) were also amended to incorporate this changed terminology.

Ordering Clauses

    8. Accordingly, It Is Ordered, pursuant to sections 1, 4(i), 4(j), 
201-205, 228, and 405 of the Communications Act of 1934, as amended, 47 
U.S.C. 151, 154(i), 154(j), 201-205, 228 and 405, that the petitions 
for reconsideration filed in this proceeding Are Denied, except as 
provided in this Order.
    9. It Is Further Ordered, that part 64 of the Commission's rules, 
47 CFR part 64 Is Amended as set forth below, effective 30 days from 
publication of the text thereof in the Federal Register.

List of Subjects in 47 CFR Part 64

    Communications common carrier, Computer technology, Telephone.


Federal Communications Commission.
William F. Caton,
Acting Secretary.

Final Rules

    Part 64 of Title 47 of the Code of Federal Regulations is amended 
as follows:

PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS

    1. The authority citation for Part 64 continues to read as follows:


    Authority: Sec. 4, 48 Stat. 1066, as amended; 47 U.S.C. 154, 
unless otherwise noted. Interpret or apply sections 201, 218, 226, 
228, 48 Stat. 1070, as amended, 1077; 47 U.S.C. 201, 218, 226, 228, 
unless otherwise noted.


    2. Section 64.1501 is revised to read as follows:


Sec. 64.1501  Definitions.

    (a) Pay-per-call service means any service:
    (1) In which any person provides or purports to provide:
    (i) Audio information or audio entertainment produced or packaged 
by such person;
    (ii) Access to simultaneous voice conversation services; or
    (iii) Any service, including the provision of a product, the 
charges for which are assessed on the basis of the completion of the 
call;
    (2) For which the caller pays a per-call or per-time-interval 
charge that is greater than, or in addition to, the charge for 
transmission of the call; and
    (3) Which is accessed through use of a 900 number;
    (4) Provided, however, such term does not include directory 
services provided by a common carrier or its affiliate or by a local 
exchange carrier or its affiliate, or any service the charge for which 
is tariffed, or any service for which users are assessed charges only 
after entering into a presubscription or comparable arrangement with 
the provider of such service.
    (b) Presubscription or comparable arrangement means a contractual 
agreement in which:
    (1) The service provider clearly and conspicuously discloses to the 
consumer all material terms and conditions associated with the use of 
the service, including the service provider's name and address, a 
business telephone number which the consumer may use to obtain 
additional information or to register a complaint, and the rates for 
the service;
    (2) The service provider agrees to notify the consumer of any 
future rate changes;
    (3) The consumer agrees to use the service on the terms and 
conditions disclosed by the service provider;
    (4) The service provider requires the use of an identification 
number or other means to prevent unauthorized access to the service by 
nonsubscribers; and
    (5) Provided, however, that disclosure of a credit or charge card 
number, along with authorization to bill that number, made during the 
course of a call to an information service shall constitute a 
presubscription or comparable arrangement if the credit or charge card 
is subject to the dispute resolution procedures of the Truth in Lending 
Act and Fair Credit Billing Act, as amended, 15 U.S.C. 1601 et seq. No 
other action taken by a consumer during the course of a call to an 
information service, for which charges are assessed, can create a 
presubscription or comparable arrangement.
    3. Section 64.1506 is revised to read as follows:


Sec. 64.1506  Number designation.

    Any interstate service described in Sec. 64.1501(a)(1)-(2), and not 
subject to the exclusions contained in Sec. 64.1501(a)(4), shall be 
offered only through telephone numbers beginning with a 900 service 
access code.
    4. In Section 64.1507, Paragraph (c) is revised to read as follows:


Sec. 64.1507  Prohibition on disconnection or interruption of service 
for failure to remit pay-per-call or similar service charges.

* * * * *
    (c) Charges for interstate information services provided on a 
collect basis which have been disputed by the subscriber.
    5. In Section 64.1510, Paragraph (b) is revised to read as follows:


Sec. 64.1510  Billing and collection of pay-per-call and similar 
charges.

* * * * *
    (b) Any common carrier offering billing and collection services to 
an entity providing interstate information services pursuant to a 
presubscription or comparable arrangement, or on a collect basis, 
shall, to the extent possible, display the billing information in the 
manner described in paragraphs (a)(2)(i) (A), (B), (D) and (a)(2)(ii) 
of this section.
    6. In Section 64.1511, the first sentence of paragraph (a) is 
revised to read as follows:


Sec. 64.1511  Forgiveness of charges and refunds.

    (a) Any carrier assigning a telephone number to a provider of 
interstate pay-per-call services or providing transmission for 
interstate information services provided pursuant to a presubscription 
or comparable arrangement or on a collect basis, and providing billing 
and collection for such services, shall establish procedures for the 
handling of subscriber complaints regarding charges for those services. 
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[FR Doc. 94-22565 Filed 9-9-94; 8:45 am]
BILLING CODE 6712-01-M