HR 3993 [LOC | WW], the "Calling Card Consumer Protection Act", Subcommittee Markup.
Date: March 24, 2010.

Editor's Notes:
 • This document displays the language of the bill as introduced [16 pages in PDF] on November 3, 2009, with changes made by the House Commerce Committee's (HCC) Subcommittee on Commerce, Trade and Consumer Protection on March 24, 2010, by adoption of the manager's amendment [5 pages in PDF].
 • No other amendments were approved at this markup.
 • Committee staff may make further technical and conforming amendments.
 • Deletions are shown in strikethrough. Additions are shown in red.
 • TLJ added hyperlinks.
 • Copyright Tech Law Journal.


A BILL

To require accurate and reasonable disclosure of the terms and conditions of prepaid telephone calling cards and services.

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:

SEC. 3. REQUIRED DISCLOSURES OF PREPAID CALLING CARDS.

(a) Required Disclosure---Any prepaid calling card provider or prepaid calling card distributor shall accurately disclose in a clear and conspicuous manner the following information relating to the terms and conditions of the prepaid calling card:

(b) Location of Disclosure and Language Requirement---

(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 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 clearly and conspicuously disclosed 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. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION 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 and solely for purposes of this Act, 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.

(c) Rulemaking Authority---Not later than 180 days 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---

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 affect 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---

(b) Intervention by Commission---

(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---

(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.

(e) Venue; Service of Process---

(f) Limitation---No prepaid calling card distributor who is a retail merchant or seller of prepaid calling cards, who, with respect to such cards, is exclusively engaged in point-of-sale transactions may be liable for damages in an action authorized under this section unless such distributor acted with actual knowledge that the act or practice giving rise to such action is unfair or deceptive and is unlawful under this Act.

SEC. 6. APPLICATION.

This Act shall apply to---

If the Commission determines that it is not feasible for prepaid calling card providers or distributors to comply with the requirements of this Act with respect to prepaid calling cards issued or placed into the stream of commerce after such 90-day period, the Commission may extend such period by not more than an additional 90 days.

SEC. 7. EFFECT ON STATE LAWS.

Nothing in this Act shall affect the authority of any State to establish or continue in effect a provision of the law of a State relating to regulation of prepaid calling cards, prepaid calling card distributors, prepaid calling services, or prepaid calling service providers, except to the extent that such provision of law is inconsistent with the provisions of this Act or a regulation prescribed under this Act, and then only to the extent of such inconsistency. A provision of the law of a State is not inconsistent with this Act or a regulation prescribed under this Act if such provision provides equal or greater protection to consumers than what is provided under this Act or the regulations prescribed under this Act.

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. GAO STUDY STUDIES.

Beginning (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.