FTC FACTSfor Consumers

TELEMARKETING

1-877-FTC-HELP

FEDERAL TRADE COMMISSION FOR THE CONSUMER

www.ftc.gov

efore making a 900 number call, you need to know how much the

call will cost, what you will get for your money, and what will

happen if you have a billing dispute.

The Federal Trade Commission's 900 Number Rule took the guesswork out of

these calls by requiring certain information in ads and preambles for 900 number

services. You also have protections under the Federal Communication

Commission's own 900 Number Rule that governs the practices of telephone

companies.

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FTC Rule

Helps Consumers

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Facts for Consumers

900 Number Ads

All print, radio, and television advertisements

for 900 number services must include:

❋ the total cost of the call if there's a flat

fee;

❋ the per-minute rate if the call is charged

by the minute, as well as any minimum

charge. If the length of the program is

known in advance, the ad also must state

the total cost of the complete program;

❋ the range of fees if there are different

rates for different options. The ad also

must state the initial cost of the call and

any minimum charges;

❋ the cost of any other 900 number to which

you may be transferred; and

❋ any other fees the service might charge.

This information can't be hidden in small

print: The cost of the call must be next to the

900 number and printed in a size that's at

least half the size of the 900 number. In a

television ad, an audio cost disclosure must

also be made.

What You Should Hear First

When you dial a 900 number that costs more

than $2, you should hear an introductory

message or "preamble." You can't be charged

for this message. It must briefly describe the

service, the name of the company providing

the service, and the cost of the call. It also

must state that anyone under age 18 needs

parental permission to complete the call.

Once this information is provided, you must

be given three seconds to hang up without

incurring a charge.

Exceptions to the Rule

The 900 Number Rule does not apply if you

have a pre-existing contractual agreement

with an information service. Be very careful

about entering such an arrangement. If you

do, your calls to the service  and resulting

bills  will not be subject to the Rule's

requirements.

The Rule also excludes calls charged to a

credit card. However, the bills for such calls

would be covered by the dispute resolution

procedures of the Fair Credit Billing Act.

Billing Errors and Disputes

The 900 Number Rule has procedures for

resolving billing disputes. Always check your

telephone bill for 900 number charges. For

each 900 call, your statement should include

the date, time, and, for services that have

per-minute rates, the length of the call. These

charges must appear separately from local

and long distance charges. Your statement

also must include a local or toll-free number

for questions about your pay-per-call charges.

Under FCC regulations, the phone company

cannot disconnect your regular local or longdistance service if you don't pay a 900 number

charge. However, you could be blocked from

making future calls to 900 numbers if you

don't pay legitimate 900 number charges.

If you find an error on your bill, follow the

instructions on your statement. They will tell

you who to call or write to dispute the charge.

In most cases, it will be your local or longdistance telephone company, but it could be

the 900 number company or an independent

firm that provides billing services for that

company.

You must notify the company listed on your

bill within 60 days from the date the first

statement containing the error was sent. The

company must acknowledge your notice in

writing within 40 days unless it has resolved
Facts for Consumers

the dispute by that time. Within two billing

cycles, but no longer than 90 days, the company must:

❋ correct the billing error and notify you of

the correction, or

❋ investigate the matter and either correct

the error or explain the reason for not

doing so.

A company cannot charge you to investigate

or respond to a billing dispute. No one can

try to collect the disputed charge from you 

or report it to a credit bureau  until the

company handling the dispute either has

corrected the error or explained its reason for

not doing so. Companies that don't comply

with these rules lose their right to collect up

to $50 of each disputed charge.

However, even if the 900 number charge is

removed from your bill, the service provider

might pursue the charge some other way,

such as through a collection agency. If so,

you have additional rights under the Fair

Debt Collection Practices Act.

Sweepstakes and Federal

Programs

The Rule also covers 900 number services

that promote sweepstakes or offer information

about government programs. For example,

some services offer the chance to enter a

sweepstakes and win a prize simply by dialing a 900 number and, in some cases, entering a code. The Rule requires ads for sweepstakes to state the odds of winning or how

odds will be calculated.

In addition, the ad or preamble must tell you

there's a free way to enter the sweepstakes,

how to enter, or how to get that information.

You shouldn't have to call  and incur a

charge  to enter. This provision doesn't

apply to contests where you have to demonstrate a skill, such as answer a question

correctly.

Other 900 numbers provide information about

federal programs even though they're not

affiliated with a government agency. This

could mislead some consumers. Under the

Rule, the ad and preamble must state that

such services are not authorized, endorsed, or

approved by a federal agency.

Children

The Rule essentially prohibits companies

from promoting 900 numbers to young

children. Some companies have promoted

900 numbers to children, encouraging them

to pick up the phone to talk to a cartoon

character. Under the FTC 900 Number Rule,

companies are prohibited from advertising or

offering pay-per-call services to children

under age 12, unless the services are truly

educational in nature.

If ads are directed to young people under age

18, they must state that parental permission is

required to make the call. Preambles for all

900 number services must contain that statement.

Toll-Free Numbers

The Rule generally prohibits:

❋ using 800, 888, or other toll-free numbers

for pay-per-call services, unless you have

a pre-existing agreement with the company or you charge the call to a credit

card;

❋ connecting you directly from an 800, 888,

or other toll-free number to a 900 number; and

❋ a collect call back if you have dialed an

800, 888, or other toll-free number.
Federal Trade Commission

Bureau of Consumer Protection

Office of Consumer and Business Education

December 1996

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Facts for Consumers

FCC Rules on Collect Calls

Under FCC regulations, pay-per-call services

can't make collect calls to you if the charge

would be more than  or in addition to 

the regular long distance charge for the call.

Services that don't impose this additional

charge can call collect. However, you can't

be charged for the call unless you have

clearly indicated that you'll accept the charge.

Tips for Avoiding 900 Number

Problems

Scams involving 900 numbers are constantly

changing. To help protect yourself:

❋ Deal only with reputable companies.

Some companies or organizations sponsor

900 number services for opinion surveys,

information, entertainment or other

services. Before you call a 900 number,

be sure you understand the cost of the call

and the nature of the information or

service you'll receive.

❋ Think twice before calling a 900 number

for a "free" gift. Television ads, postcards

and telemarketers may urge you to call a

900 number to get a "free" prize. But you

pay for the so-called free gift by making

the 900 number call. The provider of the

service usually makes money on a perminute basis, so there's an incentive to

keep you on the line.

❋ Don't confuse 900 numbers with 800 or

888 numbers. You pay for a 900 number

call. The company pays for most 800,

888, or other toll-free number calls.

❋ Talk with your children. Make sure they

understand they shouldnt call 900 numbers without your permission. You can

have the phone company block 900

number calls from your phone. The FCC

requires local phone companies to make

blocking available  where technically

feasible  for a "reasonable" fee. However, any subscriber with a new number

can request free blocking within 60 days

after service begins.

For More Information

The FTC works for the consumer to prevent

fraudulent, deceptive and unfair business

practices in the marketplace and to provide

information to help consumers spot, stop and

avoid them. To file a complaint, or to get

free information on any of 150 consumer

topics, call toll-free, 1-877-FTC-HELP

(1-877-382-4357), or use the complaint form

at www.ftc.gov. The FTC enters Internet,

telemarketing, and other fraud-related complaints into Consumer Sentinel, a secure,

online database available to hundreds of civil

and criminal law enforcement agencies worldwide.