[Federal Register Volume 88, Number 144 (Friday, July 28, 2023)]
[Proposed Rules]
[Page 48771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-15998]


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FEDERAL TRADE COMMISSION

16 CFR Part 308

RIN 3084-AA78


Trade Regulation Rule Pursuant to the Telephone Disclosure and 
Dispute Resolution Act of 1992

AGENCY:  Federal Trade Commission.

ACTION:  Proposed rule; withdrawal.

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SUMMARY:  On March 12, 1997, the Federal Trade Commission initiated a 
review of the effectiveness of its Pay-Per-Call Rule. The Commission 
sought comment on whether to expand the scope of this rule to cover 
audio information and entertainment services accessed by dialing 
telephone numbers that begin with numbers other than ``900.'' After 
receiving a small number of comments in favor of this approach, the 
Commission published a notice of proposed rulemaking to revise this 
rule on October 30, 1998. While comments received during this review 
were supportive, technological changes have muted the impact of the 
proposed revisions and the Commission is withdrawing this proposed 
rulemaking.

DATES: The proposed rule documents published on March 12, 1997 (62 FR 
11750), October 30, 1998 (63 FR 58523), and January 4, 1999 (64 FR 61) 
are withdrawn as of July 28, 2023.

FOR FURTHER INFORMATION CONTACT:  Frances Kern (202-326-2391), 
Attorney, Division of Marketing Practices, Bureau of Consumer 
Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, 
Washington, DC 20580.

SUPPLEMENTARY INFORMATION:  On March 12, 1997, the Federal Trade 
Commission (``Commission'') published a document in the Federal 
Register initiating a review of the effectiveness of the Pay-Per-Call 
Rule. 62 FR 11750. Among other things, the Pay-Per-Call Rule requires 
disclosures about the cost of telephone-based entertainment or 
information services that consumers access by dialing a 900 number and 
mandates that consumers be given the opportunity to hang up the phone 
before being charged. See 16 CFR 308.1 through 308.8. The Commission 
also sought comment on whether to expand the scope of the rule to cover 
audio information and entertainment services accessed by dialing 
telephone numbers that begin with numbers other than ``900''.
    After receiving a small number of comments in favor of this 
approach, the Commission published a notice of proposed rulemaking 
(``NPRM'') to amend the rule on October 30, 1998. 63 FR 58523. 
Following two additional rounds of public comment and a two-day public 
workshop on the proposed changes, support to amend the Pay-Per-Call 
Rule proved limited.\1\ Additionally, technological changes have muted 
the impact of the proposed amendments. Not only did the use of 900 
numbers decline precipitously after issuance of the NPRM,\2\ ultimately 
resulting in the major U.S. telecommunications providers of 900-number 
services discontinuing those services,\3\ but such reduction in use 
likewise diminished the necessity of Commission enforcement of the 
Rule. The Commission last brought an action under the rule in 2003.\4\ 
Accordingly, the review of the Pay-Per-Call Rule begun on March 12, 
1997, is terminated, and the Commission withdraws this proposed 
rulemaking.
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    \1\ On January 4, 1999, the Commission extended the comment 
period and announced changes to the dates of the public workshops 
held as a part of this rulemaking review. 64 FR 61.
    \2\ Indeed, the services previously offered through 900 numbers 
for a fee often came to be found for free on the internet. See 
Steven Melendez, How Dialing 1-900 in the `90s Foreshadowed the 
Internet, FAST COMPANY, Nov. 23, 2015, https://www.fastcompany.com/3053732/how-dialing-1-900-in-the-90s-foreshadowed-the-internet.
    \3\ AT&T, Sprint, and Verizon/MCI stopped providing 900-number 
services in 2004, 2008, and 2013, respectively. See Federal 
Communications Commission, Comments Invited on Application of MCI 
Communications Services, Inc. d/b/a Verizon Business Services to 
Discontinue Domestic Telecommunications Services, WC Docket No. 13-
139, DA 13-1256 (May 30, 2013); Federal Communications Commission, 
Order, In re Section 63.71 Application of Sprint Communications 
Company L.P. for Authority to Discontinue Domestic 
Telecommunications Services, WC Docket No. 08-116, DA 08-2557 (Nov. 
24, 2008); Federal Communications Commission, Memorandum Opinion and 
Order, In re AT&T Communications' Application to Discontinue 
Domestic Telecommunications Services, Comp. Pol. File No. 645, DA 
03-3743 (Nov. 21, 2003).
    \4\ Federal Trade Commission v. Alyon Technologies, Inc., ECF 
No. 1, No. 03-cv-1297 (N.D. Ga. May 13, 2003). The Department of 
Justice, acting on referral from the Commission, last brought a 
claim under the Rule in 2004. See U.S. v. Telemarketing, Inc., ECF 
No. 1, No. 04-cv-1083 (N.D. Cal. Mar. 18, 2004).

    By direction of the Commission.
April J. Tabor,
Secretary.
[FR Doc. 2023-15998 Filed 7-27-23; 8:45 am]
BILLING CODE 6750-01-P