[Federal Register Volume 61, Number 145 (Friday, July 26, 1996)]
[Rules and Regulations]
[Pages 39084-39088]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19138]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 64
[CC Docket No. 93-22; CC Docket No. 96-146; FCC 96-289]
Interstate Pay-Per-Call and Other Information Services
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: The Commission adopted this Order to amend its rules governing
the provision of interstate pay-per-call and other information services
to conform with the requirements of Section 701 of the
Telecommunications Act of 1996 which amended Section 228 of the
Communications Act of 1934, as amended. The rules adopted in the Order
incorporate the amendments to Section 228 virtually verbatim and are
intended to protect consumers from abuses involving use of toll-free
numbers and tariffed service systems to levy charges for interstate
information services.
EFFECTIVE DATE: December 23, 1996.
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
in CC Docket Nos. 93-22 and 96-146 [FCC 96-289], adopted June 28, 1996
and released July 11, 1996. The full text of the Order 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 text of this Order 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
[[Page 39085]]
relating to this Order, see a proposed rule involving interstate
information services published elsewhere in this issue.
Paperwork Reduction
Public reporting burden for collections of information is estimated
as follows:
------------------------------------------------------------------------
Est.
avg.
Sections hours Annual
per burden
response
------------------------------------------------------------------------
Section 64.1504..................................... 3750 10,500
Section 64.1510..................................... 1350 540,000
------------------------------------------------------------------------
Total Annual Burden: 550,500.
Frequency of Response: On Occasion.
These estimates include the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the collections of information.
Send comments regarding these burden estimates or any other aspects of
the collections of information, including suggestions for reducing the
burden, to the Federal Communications Commission, Records Management
Branch, Room 234, Paperwork Reduction Project, Washington, D.C. 20554
and to the Office of Management and Budget, Paperwork Reduction
Project, Washington, D.C. 20503.
Summary of Order:
1. On June 28, 1996, the Commission adopted an Order in CC Docket
No. 93-22 and 96-146 (released July 11, 1996; FCC 96-289) that amends
Part 64 of the Commission's rules to conform with the
Telecommunications Act of 1996, Public Law 104-104, (1996 Act). Among
other things, the 1996 Act amended Section 228 of the Communications
Act of 1934, as amended, (Communications Act), 47 USC Sec. 228, to
enact new restrictions on the manner in which toll-free numbers may be
used to provide information services and to repeal of the statutory
exemption to pay-per-call status accorded to any tariffed service under
the Telephone Disclosure and Dispute Resolution Act of 1992, Public Law
102-556 (TDDRA). As set forth in the final rules and explained below,
the Commission amended its pay-per-call regulations to comply with the
statutory mandate that our rules reflect the new requirements of
Section 228 of the Communications Act.
I. Requirements of Amended Section 228
A. ``Billing for 800 Calls''--47 USC Sec. 228(c)(7)
2. The TDDRA placed limits on charging callers who place calls to
toll-free numbers to reach information services. The 1996 Act amends
Section 228(c) of the Communications Act to expand those restrictions.
The 1996 Act adds a new prohibition on ``the calling party being
assessed, by virtue of being asked to connect or otherwise transfer to
a pay-per-call service, a charge for the call [to an 800 or any other
toll-free number].'' 47 USC Sec. 228(c)(7)(E). The Commission added to
its rules Section 64.1504(e) to codify, verbatim, this statutory
provision.
3. The 1996 Act also modifies Section 228(c)(7)(C) to prohibit
charging callers for calls to toll-free numbers for conveyance of
information unless ``the calling party has a written agreement,
including an agreement transmitted through an electronic medium,'' or
``the calling party is charged for the information * * * by means of a
credit, prepaid, debit, charge, or calling card.'' 47 USC
Secs. 228(c)(7)(C)(i)-(ii), (c)(9). These requirements and the
Commission's new implementing regulations are explained below.
1. ``Subscription Agreements for Billing for Information Provided Via
Toll-Free Calls''--47 USC Sec. 228(c)(8)
4. ``In General''--47 USC Sec. 228(c)(8)(A). The 1996 Act
enumerates specific requirements that must be followed when information
services are charged to callers to an 800 or other toll-free number
pursuant to a written presubscription agreement.
As provided in 47 USC Sec. 228(c)(8)(A)(i)-(vi), the agreement must
include:
(i) the rate at which charges are assessed for the information;
(ii) the information provider's name;
(iii) the information provider's business address;
(iv) the information provider's regular business telephone number;
(v) the information provider's agreement to notify the subscriber
at least one billing cycle in advance of all future changes in the
rates charged for the information; and
(vi) the subscriber's choice of payment method, which may be by
direct remit, debit, prepaid account, phone bill, or credit or calling
card.
The Commission added to its rules Sections 64.1504(c)(1)(i)-(vi) to
codify, verbatim, these statutory requirements governing
presubscription agreements to obtain information services available
through a toll-free number.
5. ``Billing Arrangements''--47 U.S.C. 228(c)(8)(B). The 1996 Act
prescribes new requirements for common carriers who bill telephone
subscribers for information services that are available through a toll-
free number and provided pursuant to a written presubscription
agreement. Section 228(c)(8)(B)(i) provides that
If a subscriber elects * * to pay by means of a phone bill, * *
* the [written presubscription] agreement shall clearly explain that
the subscriber will be assessed for calls made to the information
service from the subscriber's phone line.
Further, under Section 228(c)(8)(B) (ii)-(iii), any telephone bill
containing such charges must display the toll-free number that was
dialed to access the information service and contain a prominent
disclaimer stating that local and long distance telephone service may
not be disconnected for failure to pay disputed information-service
charges. The Commission added to its rules Secs. 64.1504(c)(vi) and
64.1510(c) and amended Sec. 64.1510(b) to codify, virtually verbatim,
these statutory requirements governing billing of presubscribed
information services through a telephone bill.
6. ``Use of PINs to Prevent Unauthorized Access''--47 U.S.C.
228(c)(8)(C). The 1996 Act provides that a presubscription agreement to
obtain information services through a toll-free number must include ``a
unique personal identification number or other subscriber-specific
identifier,'' a requirement that ``a subscriber use this number or
identifier to obtain access to the information provided,''
``instructions on its use,'' and assurance ``that services accessed by
use of the subscriber's personal identification number or subscriber-
specific identifier'' will be billed in the manner specified by the
subscriber (e.g., ``direct remit, debit, prepaid account, phone bill,
or credit or calling card''). 47 U.S.C. 228(c)(8)(C), (c)(8)(A)(vi).
The Commission added to its rules Sec. 64.1504(c)(vii) to codify,
virtually verbatim, these statutory requirements governing PINs.
7. ``Exceptions''--47 U.S.C. 228(c)(8)(D). The 1996 Act establishes
exceptions to the requirement for written presubscription ``for calls
utilizing telecommunications devices for the deaf, for directory
services provided by a common carrier or its affiliate or by a local
exchange carrier or its affiliate, or for any purchase of goods or of
services that are not information services.'' 47 U.S.C. 228(c)(8)(D).
The
[[Page 39086]]
Commission added to its rules Sec. 64.1504(f)(1) to codify, verbatim,
these statutory exceptions to the requirement that presubscription be
executed in writing for information services available through a toll-
free number.
8. ``Termination of Service''--47 U.S.C. 228(c)(8)(E). The 1996 Act
directs common carriers to investigate promptly complaints that a
presubscribed information service accessed through an 800 or other
toll-free number has not been provided in accordance with the statutory
requirements. Carriers also explicitly are accorded authority to
terminate service to an IP who fails to provide evidence of a written
presubscription agreement for disputed charges. The Commission added to
its rules Sec. 64.1503(b) to codify, virtually verbatim, statutory
provisions involving common carriers' investigations of complaints and
termination of service.
9. ``Treatment of Remedies''--47 U.S.C. 228(c)(8)(F). Section
228(c)(8)(F) provides that the remedies specified in Section 228(c)
``are in addition to any other remedies that are available under [the
Commission's forfeiture authority in] Title V of [the Communications]
Act. This provision simply specifies that both the Commission's Title V
statutory penal provisions and the remedies contained in Section
228(c), (e.g., termination of service to an information provider) may
be invoked against parties who violate Commission rules or orders
concerning interstate information services. The Commission determined
that the provision is effectively implemented by the statute alone and
need not be added to our pay-per-call regulations, which govern the
conduct of common carriers who transmit or bill and collect for pay-
per-call or other information services.
2. ``Charges by Credit, Prepaid, Debit, Charge, or Calling Card in
Absence of Agreement''--47 U.S.C. 228(c)(9)
10. The 1996 Act establishes payment by prepaid account, debit,
credit, charge, or calling card as alternatives to written
presubscription for information services charged to callers to 800 or
other toll-free numbers provided that all such calls begin with an
introductory disclosure message that--
(A) clearly states that there is a charge for the call;
(B) clearly states the service's total cost per minute and any
other fees for the service or for any service to which the caller may
be transferred;
(C) explains that the charge must be billed on either a credit,
prepaid, debit, charge, or calling card;
(D) asks the caller for the card number; clearly states that
charges for the call begin at the end of the introductory message; and
(E) clearly states that the caller can hang up at or before the end
of the introductory message without incurring any charge whatsoever.
47 U.S.C. 228(c)(9) (A)-(F). The Commission added to its rules
Sec. 64.1504(c)(2) to codify, verbatim, these statutory provisions
governing use of a prepaid account, debit, credit, charge, or calling
card to pay for information services that are accessed through an 800
or other toll-free number.
11. ``Bypass of Introductory Disclosure Message''--47 U.S.C.
228(c)(10). Under the 1996 Act, IPs may install a bypass mechanism so
that repeat callers to an information service accessed through an 800
or other toll free number can ``avoid listening to the introductory
message, provided that the information providers shall disable such a
bypass mechanism after the institution of any price increase and for a
period of time determined to be sufficient by the Federal Trade
Commission to give callers adequate and sufficient notice of a price
increase.'' The Commission added to its rules Sec. 64.1504(f)(2) to
codify, verbatim, these statutory provisions governing mechanisms that
permit repeat callers to bypass the introductory message required for
all information services that are accessed through an 800 or other
toll-free number and that bill through a prepaid account, debit,
credit, charge, or calling card rather than by means of a
presubscription agreement.
B. Definitions
1. Pay-Per-Call Services--47 U.S.C. Sec. 228(i)
12. The 1996 Act redefines the term ``pay-per-call services'' by
eliminating the exemption accorded to any service provided pursuant to
tariff under the TDDRA. The Commission amended Section 64.1501(a) of
its rules to remove the tariffed services exception.
2. Calling Card--47 U.S.C. Sec. 228(c)(11)
13. After recognizing payment by ``calling card'' as an acceptable
means of obtaining information services available through a toll-free
number, the 1996 Act defines a calling card as ``an identifying number
or code unique to the individual, that is issued to the individual by a
common carrier and enables the individual to be charged by means of a
phone bill for charges incurred independent of where the call
originates.'' The Commission added to its rules Section 64.1501(c) to
codify, verbatim, the statutory definition of ``calling card.''
3. Presubscription or Comparable Arrangement--47 CFR Sec. 1501(b).
14. Neither the TDDRA nor the 1996 Act defines the term
``presubscription or comparable arrangement,'' which Section 228(i)(2)
establishes as an exemption to pay-per-call status. In implementing the
TDDRA, however, the Commission and the FTC adopted identical
definitions intended to guard against uncontrolled access to
information services and to ensure that consumers receive information
necessary to make informed choices about whether to subscribe to such
services. The 1996 Act does not directly mandate modification of the
presubscription definition contained in Section 64.1501(b) of our
rules. The Commission determined, however, that certain aspects of the
definition are inconsistent with statutory requirements governing
presubscription to information services available through 800 or other
toll-free numbers. Therefore, the Commission added to its rules Section
64.1501(b)(6) to specify that presubscription arrangements to obtain
information services provided by means of an 800 or other toll-free
number must conform to the requirements of Section 64.1504(c). This
amendment incorporates into the Commission's general presubscription
definition statutory requirements that govern 800-number
presubscription.
II. Procedural Issues
A. Administrative Procedure Act Requirements
15. Because the rule changes set forth in Appendix A and adopted
herein simply conform the Commission's rules to the statute, the
Commission found for good cause that compliance with the notice and
comment provisions of the Administrative Procedure Act is unnecessary.
See 5 U.S.C. Sec. 553(b)(B). Moreover, to the extent that the
provisions of the 1996 Act mirror proposals set forth in the
Commission's Further Notice of Proposed Rule Making, Policies and Rules
Implementing the Telephone Disclosure and Dispute Resolution Act, CC
Docket No. 93-22, 59 FR 46806 (September 12, 1994), notice and comment
requirements have been satisfied.
Ordering Clauses
16. Accordingly, it is ordered, pursuant to Sections 1, 4(i), 4(j),
and 228 of the Communications Act, 47 U.S.C. Secs. 152, 154(i), 154(j),
and 228, that 47 CFR Part 64 IS AMENDED as set forth below, effective
December 23, 1996.
17. It Is further ordered that CC Docket No. 93-22 is hereby
terminated.
[[Page 39087]]
List of Subjects in 47 CFR Part 64
Communications common carriers, Computer technology, Federal
Communications Commission, Telephone.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
Rules Changes
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 secs. 201, 218, 226, 228,
48 Stat 1070, as amended, 1077; 47 U.S.C. 201, 218, 226, 228 unless
otherwise noted.
2. The heading of Subpart O of Part 64 is revised to read as
follows:
Subpart O--Interstate Pay-Per-Call and Other Information Services
3. Section 64.1501 is revised to read as follows:
Sec. 64.1501 Definitions.
For purposes of this subpart, the following definitions shall
apply:
(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 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; and
(4) The service provider requires the use of an identification
number or other means to prevent unauthorized access to the service by
nonsubscribers;
(5) Provided, however, that disclosure of a credit, prepaid
account, debit, charge, or calling 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 an introductory message containing the information
specified in Sec. 64.1504(c)(2) is provided prior to, and independent
of, assessment of any charges. 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.
(6) Provided, that a presubscription arrangement to obtain
information services provided by means of a toll-free number shall
conform to the requirements of Sec. 64.1504(c).
(c) Calling card means an identifying number or code unique to the
individual, that is issued to the individual by a common carrier and
enables the individual to be charged by means of a phone bill for
charges incurred independent of where the call originates.
4. Section 64.1503 is revised to read as follows:
Sec. 64.1503 Termination of pay-per-call and other information
programs.
(a) Any common carrier assigning a telephone number to a provider
of interstate pay-per-call service shall specify by contract or tariff
that pay-per-call programs not in compliance with Sec. 64.1502 shall be
terminated following written notice to the information provider. The
information provider shall be afforded a period of no less than seven
and no more than 14 days during which a program may be brought into
compliance. Programs not in compliance at the expiration of such period
shall be terminated immediately.
(b) Any common carrier providing transmission or billing and
collection services to a provider of interstate information service
through any 800 telephone number, or other telephone number advertised
or widely understood to be toll-free, shall promptly investigate any
complaint that such service is not provided in accordance with
Sec. 64.1504 or Sec. 64.1510(c), and, if the carrier reasonably
determines that the complaint is valid, may terminate the provision of
service to an information provider unless the provider supplies
evidence of a written agreement that meets the requirements of this
Sec. 64.1504(c)(1).
5. Section 64.1504 is revised to read as follows:
Sec. 64.1504 Restrictions on the use of toll-free numbers.
A common carrier shall prohibit by tariff or contract the use of
any 800 telephone number, or other telephone number advertised or
widely understood to be toll-free, in a manner that would result in:
(a) The calling party or the subscriber to the originating line
being assessed, by virtue of completing the call, a charge for a call;
(b) The calling party being connected to a pay-per-call service;
(c) The calling party being charged for information conveyed during
the call unless:
(1) The calling party has a written agreement (including an
agreement transmitted through electronic medium) that specifies the
material terms and conditions under which the information is offered
and includes:
(i) The rate at which charges are assessed for the information;
(ii) The information provider's name;
(iii) The information provider's business address;
(iv) The information provider's regular business telephone number;
(v) The information provider's agreement to notify the subscriber
at least one billing cycle in advance of all future changes in the
rates charged for the information;
(vi) The subscriber's choice of payment method, which may be by
direct remit, debit, prepaid account, phone bill, or credit or calling
card and, if a subscriber elects to pay by means of phone bill, a clear
explanation that the subscriber will be assessed for calls made to the
information service from the subscriber's phone line;
(vii) A unique personal identification number or other subscriber-
specific identifier that must be used to obtain access to the
information service and instructions on its use, and, in addition,
assures that any charges for services
[[Page 39088]]
accessed by use of the subscriber's personal identification number or
subscriber-specific identifier be assessed to subscriber's source of
payment elected pursuant to paragraph (c)(1)(vi) of this section; or
(2) The calling party is charged for the information by means of a
credit, prepaid, debit, charge, or calling card and the information
service provider includes in response to each call an introductory
message that:
(i) Clearly states that there is a charge for the call;
(ii) Clearly states the service's total cost per minute and any
other fees for the service or for any service to which the caller may
be transferred;
(iii) Explains that the charges must be billed on either a credit,
prepaid, debit, charge, or calling card;
(iv) Asks the caller for the card number;
(v) Clearly states that charges for the call begin at the end of
the introductory message; and
(vi) Clearly states that the caller can hang at or before the end
of the introductory message without incurring any charge whatsoever.
(d) The calling party being called back collect for the provision
of audio or data information services, simultaneous voice conversation
services, or products; and
(e) The calling party being assessed by virtue of the caller being
asked to connect or otherwise transfer to a pay-per-call service, a
charge for the call.
(f) Provided, however, that:
(1) Notwithstanding paragraph (c)(1) of this section, a written
agreement that meets the requirements of that paragraph is not required
for:
(i) Calls utilizing telecommunications devices for the deaf;
(ii) Directory services provided by a common carrier or its
affiliate or by a local exchange carrier or its affiliate; or
(iii) Any purchase of goods or of services that are not information
services.
(2) The requirements of paragraph (c)(2) of this section shall not
apply to calls from repeat callers using a bypass mechanism to avoid
listening to the introductory message: Provided, That information
providers shall disable such a bypass mechanism after the institution
of any price increase for a period of time determined to be sufficient
by the Federal Trade Commission to give callers adequate and sufficient
notice of a price increase.
6. In Section 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 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.
(c) If a subscriber elects, pursuant to Sec. 64.1504(c)(1)(vi), to
pay by means of a phone bill for any information service provided by
through any 800 telephone number, or other telephone number advertised
or widely understood to be toll-free, the phone bill shall:
(1) Include, in prominent type, the following disclaimer: ``Common
carriers may not disconnect local or long distance telephone service
for failure to pay disputed charges for information services;'' and
(2) Clearly list the 800 or other toll-free number dialed.
[FR Doc. 96-19138 Filed 7-25-96; 8:45 am]
BILLING CODE 6712-01-P