[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: 94-22566]


[[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 Information Services

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: The Commission adopted this Further Notice of Proposed Rule 
Making to address abusive practices involving interstate information 
services offered through 800 numbers and pursuant to a presubscription 
or comparable arrangement. This action was taken to amend the 
Commission's existing rules to give telephone subscribers greater 
protection from apparently fraudulent and deceptive practices.

DATES: Comments must be submitted on or before October 10, 1994. Reply 
comments must be submitted on or before October 31, 1994.

ADDRESSES: Federal Communications Commission, 1919 M Street, N.W., 
Washington, D.C. 20554.

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

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Further Notice of Proposed Rule Making in CC Docket No. 93-22 [FCC 94-
200], adopted August 2, 1994 and released August 31, 1994. The full 
text of the Further Notice of Proposed Rule Making is available for 
inspection and copying during normal business hours in the FCC 
Reference Center, Room 239, 1919 M Street, N.W., Washington, D.C. The 
full test of this Further Notice of Proposed Rule Making may also be 
purchased from the Commission's duplicating contractor, International 
Transcription Services, 2100 M Street, N.W., Suite 140, Washington, 
D.C. 20037, (202) 857-3800. For a document relating to this Further 
Notice of Proposed Rule Making, see final rules governing interstate 
pay-per-call services that are published elsewhere in this issue.

Summary of Notice of Proposed Rule Making

    1. On August 2, 1994, the Commission adopted a Further Notice of 
Proposed Rule Making (FNPRM) in CC Docket No. 93-22 (released August 
31, 1994; FCC 94-200) proposing changes to rules governing the 
provision of information services through 800 numbers and pursuant to a 
presubscription or comparable arrangement. The proposed amendments are 
intended to protect consumers from apparently fraudulent and deceptive 
practices associated with the provision of these services.
    2. The Commission's rules governing interstate pay-per-call and 
information services were adopted in 1993 to implement the Telephone 
Disclosure and Dispute Resolution Act of 1992, 47 CFR 228 (TDDRA). The 
TDDRA requires that most interstate information services must be 
offered exclusively through telephone numbers beginning with the 900 
service access code and generally prohibits the use of 800 numbers to 
provide information services. However, under the statute, 800 numbers 
may be used to provide information services pursuant to a 
presubscription or comparable arrangement. In an effect to control 
potential abuses of the presubscription provisions, the Commission 
explicitly defined presubscription as a contractual agreement between 
an information provider (IP) and a fully informed caller who agrees to 
purchase information services under the terms and conditions offered by 
the IP. Nonetheless, complaints before the Commission indicate that IPs 
are apparently charging telephone subscribers for calls placed to 800 
numbers without ascertaining that the subscriber who is charged is, in 
fact, the caller who agreed to purchase the service. IPs apparently 
read the Automatic Number Identification (ANI) of the originating 
telephone line to charge the call to the subscriber to that line 
without regard to whether the subscriber has placed the call. The 
Commission expressed particular concern that such practices threaten 
the public perception of 800 numbers as being toll-free, a perception 
and reality that Congress clearly sought to maintain through the TDDRA.
    3. The Commission thus proposed to adopt more stringent 
requirements governing the establishment of presubscription 
arrangements and the use of 800 numbers to provide information 
services. Specifically, Sec. 64.1504 would be amended to state 
explicitly that the rule protects not only callers to 800 numbers, but 
also subscribers whose telephone lines may be used to place calls to 
800 number information services. In addition, Sec. 64.1504(b) would 
prohibit the use of 800 numbers to connect callers to any information 
service that is not provided under a presubscription or comparable 
arrangement.
    4. The Commission also proposed to modify the definition of a 
presubscription or comparable arrangement contained in Sec. 64.1501(b) 
to require that such arrangements be established only with a legally 
competent individual and executed in writing, unless charges are 
authorized to a credit or charge card generally accepted for the 
purchase of consumer goods, entertainment, travel, and lodging. Section 
64.1510(b) would be amended to prohibit common carriers from billing 
subscribers for presubscribed information services without evidence of 
the written agreement. The amendment would also require common carriers 
to address bills assessing presubscribed information services charges 
only to the individual who entered into the presubscription agreement. 
Finally, carriers performing billing services for IPs would be 
required, without exception, to separate charges for presubscribed 
information services from charges for telecommunications services and 
to display for each information service charge: (1) The type of service 
and the service provider's name and business telephone number; (2) the 
telephone number actually called; (3) the amount of the charge; (4) the 
date and time of the call; and (5) for calls billed on a time-sensitive 
basis, the duration of the call.
    5. The Commission recognized that these proposals would impose new 
burdens on both common carriers and IPs that have not engaged in the 
abuses described above but, nonetheless, concluded that these burdens 
are outweighed by the need to protect subscribers from bills for 
services that neither sought nor received. The Commission encouraged 
parties opposing the proposals to identify and quantify, with 
specificity, any expected burdens and to describe alternative means of 
protecting consumers. Finally, the Commission urged interested parties 
to discuss whether the proposed rules adequately protect consumers or 
whether other measures are necessary to guard against deception and 
evasion by IPs, particularly when an IP and common carrier are commonly 
owned or have close business ties.
    6. Pursuant to the Regulatory Flexibility Act of 1980, 5 U.S.C. 
603, the Commission determined that the proposals contained in the 
FNPRM may have some impact on small entities due to the proposed 
requirement the presubscription be executed in writing. Public comment 
is requested on the initial regulatory flexibility analysis set out in 
the full FNPRM. A copy of the analysis is being sent to the Chief 
Counsel for Advocacy of the Small Business Administration in accordance 
with Section 603(a) of the Regulatory Flexibility Act, 5 U.S.C. 603(a).
    7. This notice and comment rulemaking proceeding is non-restricted. 
Section 1.1206(a) of the Commission's rules, 47 CFR 1.1206(a), contains 
provisions governing permissible ex parte contacts.

Ordering Clauses

    8. It Is Further 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 a Further Notice 
of Proposed Rule Making Is Issued, proposing amendment of 47 CFR Part 
64 as set forth below.
    9. It Is Further Ordered, that pursuant to Secs. 1.415 and 1.419 of 
the Commission's Rules, 47 CFR 1.415, 1.419, that all interested 
parties may file comments on the matters discussed in this Further 
Notice of Proposed Rule Making and on the proposed rules contained 
below by October 10, 1994. Reply comments are due October 31, 1994. All 
relevant and timely comments will be considered by the Commission 
before final action is taken in this proceeding. To file formally in 
this proceeding, participants must file an original and four copies of 
all comments, reply comments, and supporting comments. If participants 
wish each Commissioner to have a personal copy of their comments, an 
original and nine copies must be filed. Comments and reply comments 
should be sent to the Office of the Secretary, Federal Communications 
Commission, Washington, D.C. 20554. Comments and reply comments will be 
available for public inspection during regular business hours in the 
FCC Reference Center (Room 239) of the Federal Communications 
Commission, 1919 M Street, N.W., Washington, D.C. 20554.

List of Subjects in 47 CFR Part 64

    Communications common carrier, Computer technology, Telephone.

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

Proposed Rules

    Part 64 of Title 47 of the Code of Federal Regulations is proposed 
to be 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. In Sec. 64.1501, the introductory text of paragraph (b) and 
paragraph (b)(5) are revised to read as follows:


Sec. 64.1501  Definitions.

* * * * *
    (b) Presubscription or comparable arrangement means a contractual 
agreement, executed in writing with a legally competent individual, in 
which:
* * * * *
    (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 both:
    (i) Generally available for the purchase of consumer goods, 
entertainment, travel, and lodging, and
    (ii) Subject to the dispute resolution procedures of the Truth in 
Lending Act and Fair Credit Billing Act, as amended, 15 U.S.C. section 
1601 et seq.
    3. In Sec. 64.1504, Paragraphs (b), (c), and (d) are revised to 
read as follows:


Sec. 64.1504  Restrictions on the use of 800 numbers.

* * * * *
    (b) The calling party being connected to a pay-per-call service or 
any other information service that is not provided in accordance with 
paragraph (c) of this section;
    (c) The calling party or the subscriber to the originating line 
being charged for information conveyed during the call except pursuant 
to a presubscription or comparable arrangement between the information 
provider and the party charged;
    (d) The calling party or the subscriber to the originating line 
being called back collect for the provision of audio or data 
information services, simultaneous voice conversation services, or 
products.
    4. In Sec. 64.1510, paragraph (b) is revised and new paragraph (c) 
is added to read as follows:


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

* * * * *
    (b) Any common carrier offering billing and collection services to 
an entity providing interstate information services pursuant to a 
presubscription or comparable arrangement shall
    (1) Bill for such services only after obtaining evidence that a 
presubscription or comparable arrangement has been established in 
accordance with Sec. 64.1501(b) with the person being billed, and 
address the bill to that person;
    (2) In any billing that includes charges for any interstate 
information services provided pursuant to a presubscription or 
comparable arrangement:
    (i) Include a statement indicating that:
    (A) Such charges are for non-communications services;
    (B) Neither local nor long distance services can be disconnected 
for nonpayment although an information provider may employ private 
entities to seek to collect such charges; and
    (C) Access to information services may be involuntarily blocked for 
failure to pay legitimate charges;
    (ii) Display any charges for information services obtained pursuant 
to a presubscription or comparable arrangement in a part of the bill 
that is identified as not being related to local and long distance 
telephone charges; and
    (iii) Specify, for each presubscribed information service charge 
made, the type of service; the name and business telephone number of 
the service provider; the amount of the charge; the telephone number 
actually dialed; and the date, time, and, for calls billed on a time-
sensitive basis, the duration of the call.
    (c) Any common carrier offering billing and collection services for 
interstate information services provided on a collect basis shall, to 
the extent possible, display billing information in the manner 
described in paragraph (b)(2) of this section.

[FR Doc. 94-22566 Filed 9-9-94; 8:45 am]
BILLING CODE 6712-01-M