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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4319 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4319

    To require the Federal Communications Commission to promulgate 
   regulations to provide for accurate disclosures of the terms and 
             conditions of prepaid telephone calling cards.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2012

  Mr. Engel introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL

 
    To require the Federal Communications Commission to promulgate 
   regulations to provide for accurate disclosures of the terms and 
             conditions of prepaid telephone calling cards.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Calling Card Consumer Protection 
Act''.

SEC. 2. FCC REGULATIONS REQUIRING DISCLOSURES OF TERMS AND CONDITIONS 
              OF PREPAID CALLING CARDS.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Commission shall promulgate regulations that 
require prepaid calling card providers and prepaid calling card 
distributors to accurately disclose the terms and conditions applicable 
to prepaid calling cards.
    (b) Information Required To Be Disclosed.--The regulations 
promulgated under subsection (a) shall require disclosure of the 
following information with respect to a prepaid calling card:
            (1) The name of the prepaid calling card provider and such 
        provider's customer service telephone number and hours of 
        service.
            (2)(A) The number of domestic interstate minutes available 
        from the prepaid calling card and the number of available 
        minutes for all international preferred destinations served by 
        the prepaid calling card at the time of purchase; or
            (B) the dollar value of the prepaid calling card, the 
        domestic interstate rate per minute provided by such card, and 
        the applicable per minute rates for all international preferred 
        destinations served by the prepaid calling card at the time of 
        purchase.
            (3)(A) The applicable per minute rate for all individual 
        international destinations served by the card at the time of 
        purchase; or
            (B) a toll-free customer service number and Web site (if 
        the provider maintains a Web site) where a consumer may obtain 
        the information described in subparagraph (A) and a statement 
        that such information may be obtained through such toll-free 
        customer service number and Web site.
            (4) The following terms and conditions pertaining to, or 
        associated with, the use of the prepaid calling card:
                    (A) Any applicable fees associated with the use of 
                the prepaid calling card.
                    (B) A description of any additional charges 
                associated with the use of the prepaid calling card and 
                the amount of such charges.
                    (C) Any limitation on the use or period of time for 
                which the promoted or advertised minutes or rates will 
                be available.
                    (D) A description of the applicable policies 
                relating to refund, recharge, and any predetermined 
                decrease in value of such card over a period of time.
                    (E) Any expiration date applicable to the prepaid 
                calling card or the minutes available with such calling 
                card.
    (c) Manner of Disclosures.--The regulations promulgated under 
subsection (a) shall include the following requirements with respect to 
the manner of the disclosures required by such regulations:
            (1) Clear and conspicuous.--Such disclosures shall be made 
        in a clear and conspicuous manner and location, as follows:
                    (A) Cards.--Such disclosures shall be printed in 
                plain English language (except as provided in paragraph 
                (2)) in a clear and conspicuous manner and location on 
                the prepaid calling card, except as the Commission may 
                provide under paragraph (3). If the card is enclosed in 
                packaging that obscures the disclosures on the card, 
                such disclosures also shall be printed on the outside 
                packaging of the card.
                    (B) Online services.--In addition to the 
                requirements under subparagraph (A), in the case of a 
                prepaid calling card that consumers purchase via the 
                Internet, such disclosures shall be displayed in plain 
                English language (except as provided in paragraph (2)) 
                in a clear and conspicuous manner and location on the 
                Internet Web site that the consumer must access prior 
                to purchasing such card.
                    (C) Advertising and other promotional material.--
                Except as the Commission may provide under paragraph 
                (3), such disclosures shall be included in a clear and 
                conspicuous manner and location in any advertising or 
                other promotional material for a prepaid calling card 
                that contains any representation, expressly or by 
                implication, regarding the dollar value, the per minute 
                rate, or the number of minutes provided by the card.
            (2) Foreign languages.--If a language other than English is 
        prominently used on a prepaid calling card or its packaging or 
        in any advertising or other promotional material for such card, 
        such disclosures shall be made in that language in or on such 
        card, packaging, advertising, or promotional material.
            (3) Different location of certain information as determined 
        by commission.--Notwithstanding paragraph (1), if the 
        Commission determines that some of the information required to 
        be disclosed by the regulations promulgated under subsection 
        (a) does not need to be disclosed in or on the prepaid calling 
        card, packaging, advertising, or other promotional material, 
        the Commission may exclude from such regulations any 
        requirement for the disclosure of such information in that 
        manner, if such regulations--
                    (A) require such information to be otherwise 
                disclosed and available to consumers;
                    (B) provide for easy comprehension and comparison 
                by consumers; and
                    (C) ensure that the remaining disclosures in or on 
                the prepaid calling card, packaging, advertising, or 
                other promotional material include sufficient 
                information to allow a consumer to effectively inquire 
                about or seek clarification of the services provided by 
                the calling card.
    (d) Voice Prompts.--The regulations promulgated under subsection 
(a) shall, taking into account the application of the fees and 
additional charges required to be disclosed under such regulations, 
require the accuracy of any information that--
            (1) is provided to a consumer by a voice prompt given to 
        the consumer at the time the consumer uses the prepaid calling 
        card; and
            (2) relates to the remaining value of the calling card or 
        the number of minutes available from the calling card.
    (e) Disclosures Required Upon Purchase of Additional Minutes.--The 
regulations promulgated under subsection (a) shall require that, 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, fees, or additional charges 
required to be disclosed under such regulations shall apply only to the 
additional minutes to be purchased and shall be disclosed clearly and 
conspicuously to the consumer before the completion of such purchase.
    (f) No False, Misleading, or Deceptive Disclosures.--The 
regulations promulgated under subsection (a) shall prohibit the 
inclusion of any false, misleading, or deceptive representations 
relating to the terms and conditions of the prepaid calling card in or 
on the prepaid calling card, packaging, advertising, or other 
promotional material containing a disclosure required by such 
regulations.
    (g) Additional Authority Concerning Manner of Disclosures.--The 
regulations promulgated under subsection (a) may include requirements 
concerning the order, format, presentation, and design of the required 
disclosures and may establish and require the use of uniform terms, 
symbols, or categories to describe or disclose rates, 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.
    (h) Factors for Consideration.--In promulgating regulations under 
subsection (a), the Commission shall--
            (1) take into consideration the need for clear disclosures 
        that provide for easy comprehension and comparison by 
        consumers, taking into account the size of prepaid calling 
        cards; and
            (2) take into consideration the views of States.
    (i) Limitation.--In promulgating regulations under subsection (a), 
the Commission may not specify the rates, fees, or additional charges 
or the terms and conditions of prepaid calling cards.

SEC. 3. IMPLEMENTATION AND ENFORCEMENT BY FCC.

    (a) Authority of the Commission.--The Commission shall implement 
and enforce this Act in the same manner, by the same means, and with 
the same jurisdiction, powers, and duties as though all applicable 
terms and provisions of the Communications Act of 1934 (47 U.S.C. 151 
et seq.) were incorporated into and made a part of this Act.
    (b) Consultation Between FCC and FTC.--
            (1) In general.--In promulgating regulations under section 
        2(a) and in enforcing such regulations, the Commission shall 
        consult with the Federal Trade Commission.
            (2) FTC regulations on prepaid calling card disclosures.--
        If the Federal Trade Commission initiates a rulemaking 
        proceeding to establish requirements relating to the disclosure 
        of terms and conditions of prepaid calling cards, the Federal 
        Trade Commission shall consult with the Commission to ensure 
        that any such requirements and the enforcement of any such 
        requirements by the Federal Trade Commission are not 
        inconsistent with the regulations promulgated under section 
        2(a) and the enforcement of such regulations by the Commission.

SEC. 4. ENFORCEMENT BY STATES.

    (a) In General.--
            (1) Civil actions.--In any case in which the attorney 
        general of a State, a State utility commission, or other 
        consumer protection agency has reason to believe that an 
        interest of the residents of such State has been or is 
        threatened or adversely affected by the engagement of any 
        person in a practice that is prohibited by a regulation 
        promulgated under section 2(a), the State utility commission or 
        other consumer protection agency, if authorized by State law, 
        or the State, as parens patriae, may bring a civil action on 
        behalf of the residents of such State in an appropriate 
        district court of the United States or any other court of 
        competent jurisdiction to--
                    (A) enjoin such practice;
                    (B) enforce compliance with such regulation;
                    (C) obtain damages, restitution, or other 
                compensation on behalf of residents of the State; or
                    (D) obtain such other relief as the court may 
                consider to be appropriate.
            (2) Notice to the commission.--
                    (A) In general.--Before filing an action under this 
                subsection, the State shall provide to the Commission--
                            (i) written notice of the action; and
                            (ii) a copy of the complaint for the 
                        action.
                    (B) Exemption.--
                            (i) In general.--Subparagraph (A) shall not 
                        apply with respect to the filing of an action 
                        by a State under this subsection if the 
                        attorney general or other appropriate officer 
                        determines that it is not feasible to provide 
                        the notice described in such subparagraph 
                        before the filing of the action.
                            (ii) Notification.--In an action described 
                        in clause (i), the State shall provide notice 
                        and a copy of the complaint to the Commission 
                        at the same time as the State files the action.
    (b) Intervention by Commission.--
            (1) In general.--On receiving notice under subsection 
        (a)(2), the Commission shall have the right to intervene in the 
        action that is the subject of the notice.
            (2) Effect of intervention.--If the Commission intervenes 
        in an action under subsection (a), it shall have the right--
                    (A) to be heard with respect to any matter that 
                arises in such action;
                    (B) to remove the action to the appropriate 
                district court of the United States; and
                    (C) to file a petition for appeal.
    (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 such State to--
            (1) conduct investigations;
            (2) administer oaths or affirmations;
            (3) compel the attendance of witnesses or the production of 
        documentary and other evidence; or
            (4) enforce any State law.
    (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 a regulation promulgated under section 2(a), no State 
may, during the pendency of such action, institute an action under 
subsection (a) against any defendant named in the complaint in the 
action instituted by or on behalf of the Commission for any violation 
of such regulation alleged in such complaint.

SEC. 5. EFFECT ON OTHER LAW.

    (a) FCC Authority.--Nothing in this Act shall be construed to--
            (1) limit the authority of the Commission, under any other 
        provision of law, with respect to disclosure of the terms and 
        conditions of prepaid calling cards; or
            (2) affect any proceeding initiated by the Commission prior 
        to the date of the enactment of this Act with respect to 
        disclosure of the terms and conditions of prepaid calling 
        cards.
    (b) Preemption of State Law.--After the date on which final 
regulations are promulgated under section 2(a), 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 the packaging of prepaid calling 
cards or included in advertising or other promotional material with 
respect to prepaid calling cards, unless such requirements are 
identical to the requirements of such regulations.

SEC. 6. STUDIES.

    (a) GAO Study.--Beginning 2 years after the date on which final 
regulations are promulgated under section 2(a), the Comptroller General 
of the United States shall conduct a study of the effectiveness of this 
Act and the disclosures required under this Act and shall submit a 
report on such study to Congress not later than 3 years after the date 
of the enactment of this Act.
    (b) FCC Study.--The Commission shall, in consultation with the 
Federal Trade 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 commercial mobile service 
industry and shall submit a report on such study, including 
recommendations, if any, to Congress not later than 3 years after the 
date of the enactment of this Act.

SEC. 7. DEFINITIONS.

    (a) Incorporation of Definitions From Communications Act of 1934.--
In this Act, a term that is defined in section 3 of the Communications 
Act of 1934 (47 U.S.C. 153) shall have the meaning given such term in 
such section.
    (b) Additional Definitions.--The following additional definitions 
apply in this Act:
            (1) Additional charge.--The term ``additional charge'' 
        means any charge assessed by a prepaid calling card provider or 
        prepaid calling card distributor for the use of a prepaid 
        calling card, other than a fee or rate.
            (2) Commercial mobile service.--The term ``commercial 
        mobile service'' has the meaning given such term in section 332 
        of the Communications Act of 1934 (47 U.S.C. 332).
            (3) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (4) Fees.--The term ``fees'' includes all charges, fees, 
        taxes, or surcharges applicable to a prepaid calling card that 
        are--
                    (A) required by Federal law or regulation or order 
                of the Commission or by the laws and regulations of any 
                State or political subdivision of a State; or
                    (B) expressly permitted to be assessed under 
                Federal law or regulation or order of the Commission or 
                under the laws and regulations of any State or 
                political subdivision of a State.
            (5) International preferred destination.--The term 
        ``international preferred destination'' means one or more 
        specific international destinations named on a prepaid calling 
        card, on the packaging material accompanying a prepaid calling 
        card, or in the advertising or other promotional material with 
        respect to a prepaid calling card.
            (6) Prepaid calling card.--The term ``prepaid calling 
        card'' has the meaning given such term in section 64.5000 of 
        the Commission's regulations (47 C.F.R. 64.5000). Such term 
        shall also include calling cards that use interconnected VoIP 
        service or a successor protocol. Such term shall also include 
        an electronic or other mechanism that allows users to pay in 
        advance for a specified amount of calling. Such term shall not 
        include--
                    (A) calling cards or other rights of use that are 
                provided for free or at no additional cost as a 
                promotional item accompanying a product or service 
                purchased by a consumer;
                    (B) any card, device, or other right of use, the 
                purchase of which establishes a customer-carrier 
                relationship with a provider of commercial mobile 
                service or wireless hybrid service, or that provides 
                access to a commercial mobile service or wireless 
                hybrid service account wherein the purchaser has a pre-
                existing relationship with the provider; or
                    (C) payphone service (as defined in section 276 of 
                the Communications Act of 1934 (47 U.S.C. 276)).
            (7) Prepaid calling card distributor.--The term ``prepaid 
        calling card distributor'' means any entity or person that 
        purchases prepaid calling cards from a prepaid calling card 
        provider or another prepaid calling card distributor and sells, 
        re-sells, issues, or distributes such cards to one or more 
        distributors of such cards or to one or more retail sellers of 
        such cards. Such term shall not include--
                    (A) any retail seller whose only activity with 
                respect to the sale of prepaid calling cards is point-
                of-sale transactions with end-user customers; or
                    (B) any person whose only activity with respect to 
                the sale of prepaid calling cards is the transport or 
                delivery of such cards.
            (8) Prepaid calling card provider.--The term ``prepaid 
        calling card provider'' has the meaning given such term in 
        section 64.5000 of the Commission's regulations (47 C.F.R. 
        64.5000). Such term shall also include--
                    (A) a provider of a prepaid calling card that uses 
                interconnected VoIP service or a successor protocol; 
                and
                    (B) a provider of a prepaid calling card that 
                allows users to pay in advance for a specified amount 
                of minutes through an electronic or other mechanism.
            (9) Wireless hybrid service.--The term ``wireless hybrid 
        service'' means a service that integrates both commercial 
        mobile service and interconnected VoIP service.

SEC. 8. DATE OF APPLICATION.

    This Act shall apply with respect to--
            (1) any prepaid calling card issued or placed into the 
        stream of commerce beginning 180 days after the date on which 
        final regulations are promulgated under section 2(a); and
            (2) any advertising, other promotional material, or voice 
        prompt regarding a prepaid calling card that is disseminated 
        beginning 180 days after the date on which final regulations 
        are promulgated under section 2(a).
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