I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Calling Card Consumer 

5 Protection Act’’. 


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1 SEC. 2. FCC REGULATIONS REQUIRING DISCLOSURES OF 

2 TERMS AND CONDITIONS OF PREPAID CALL3 ING CARDS. 

4 (a) IN GENERAL.—Not later than 1 year after the 

5 date of the enactment of this Act, the Commission shall 

6 promulgate regulations that require prepaid calling card 

7 providers and prepaid calling card distributors to accu8 rately disclose the terms and conditions applicable to pre9 paid calling cards. 

10 (b) INFORMATION REQUIRED TO BE DISCLOSED.— 

11 The regulations promulgated under subsection (a) shall 

12 require disclosure of the following information with re13 spect to a prepaid calling card: 

14 (1) The name of the prepaid calling card pro15 vider and such provider’s customer service telephone 

16 number and hours of service. 

17 (2)(A) The number of domestic interstate min18 utes available from the prepaid calling card and the 

19 number of available minutes for all international 

20 preferred destinations served by the prepaid calling 

21 card at the time of purchase; or 

22 (B) the dollar value of the prepaid calling card, 

23 the domestic interstate rate per minute provided by 

24 such card, and the applicable per minute rates for 

25 all international preferred destinations served by the 

26 prepaid calling card at the time of purchase. 


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1 (3)(A) The applicable per minute rate for all in2 dividual international destinations served by the card 

3 at the time of purchase; or 

4 (B) a toll-free customer service number and 

5 Web site (if the provider maintains a Web site) 

6 where a consumer may obtain the information de7 scribed in subparagraph (A) and a statement that 

8 such information may be obtained through such toll9 free customer service number and Web site. 

10 (4) The following terms and conditions per11 taining to, or associated with, the use of the prepaid 

12 calling card: 

13 (A) Any applicable fees associated with the 

14 use of the prepaid calling card. 

15 (B) A description of any additional charges 

16 associated with the use of the prepaid calling 

17 card and the amount of such charges. 

18 (C) Any limitation on the use or period of 

19 time for which the promoted or advertised min20 utes or rates will be available. 

21 (D) A description of the applicable policies 

22 relating to refund, recharge, and any predeter23 mined decrease in value of such card over a pe24 riod of time. 


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1 (E) Any expiration date applicable to the 

2 prepaid calling card or the minutes available 

3 with such calling card. 

4 (c) MANNER OF DISCLOSURES.—The regulations 

5 promulgated under subsection (a) shall include the fol6 lowing requirements with respect to the manner of the dis7 closures required by such regulations: 

8 (1) CLEAR AND CONSPICUOUS.—Such disclo9 sures shall be made in a clear and conspicuous man10 ner and location, as follows: 

11 (A) CARDS.—Such disclosures shall be 

12 printed in plain English language (except as 

13 provided in paragraph (2)) in a clear and con14 spicuous manner and location on the prepaid 

15 calling card, except as the Commission may 

16 provide under paragraph (3). If the card is en17 closed in packaging that obscures the disclo18 sures on the card, such disclosures also shall be 

19 printed on the outside packaging of the card. 

20 (B) ONLINE SERVICES.—In addition to the 

21 requirements under subparagraph (A), in the 

22 case of a prepaid calling card that consumers 

23 purchase via the Internet, such disclosures shall 

24 be displayed in plain English language (except 

25 as provided in paragraph (2)) in a clear and 


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1 conspicuous manner and location on the Inter2 net Web site that the consumer must access 

3 prior to purchasing such card. 

4 (C) ADVERTISING AND OTHER PRO5 MOTIONAL MATERIAL.—Except as the Commis6 sion may provide under paragraph (3), such 

7 disclosures shall be included in a clear and con8 spicuous manner and location in any adver9 tising or other promotional material for a pre10 paid calling card that contains any representa11 tion, expressly or by implication, regarding the 

12 dollar value, the per minute rate, or the number 

13 of minutes provided by the card. 

14 (2) FOREIGN LANGUAGES.—If a language other 

15 than English is prominently used on a prepaid call16 ing card or its packaging or in any advertising or 

17 other promotional material for such card, such dis18 closures shall be made in that language in or on 

19 such card, packaging, advertising, or promotional 

20 material. 

21 (3) DIFFERENT LOCATION OF CERTAIN INFOR22 MATION AS DETERMINED BY COMMISSION.—Not23 withstanding paragraph (1), if the Commission de24 termines that some of the information required to be 

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1 section (a) does not need to be disclosed in or on the 

2 prepaid calling card, packaging, advertising, or other 

3 promotional material, the Commission may exclude 

4 from such regulations any requirement for the dis5 closure of such information in that manner, if such 

6 regulations— 

7 (A) require such information to be other8 wise disclosed and available to consumers; 

9 (B) provide for easy comprehension and 

10 comparison by consumers; and 

11 (C) ensure that the remaining disclosures 

12 in or on the prepaid calling card, packaging, 

13 advertising, or other promotional material in14 clude sufficient information to allow a consumer 

15 to effectively inquire about or seek clarification 

16 of the services provided by the calling card. 

17 (d) VOICE PROMPTS.—The regulations promulgated 

18 under subsection (a) shall, taking into account the applica19 tion of the fees and additional charges required to be dis20 closed under such regulations, require the accuracy of any 

21 information that— 

22 (1) is provided to a consumer by a voice prompt 

23 given to the consumer at the time the consumer uses 

24 the prepaid calling card; and 


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1 (2) relates to the remaining value of the calling 

2 card or the number of minutes available from the 

3 calling card. 

4 (e) DISCLOSURES REQUIRED UPON PURCHASE OF

5 ADDITIONAL MINUTES.—The regulations promulgated 

6 under subsection (a) shall require that, if a prepaid calling 

7 card permits a consumer to add value to the card or pur8 chase additional minutes after the original purchase of the 

9 prepaid calling card, any changes to the rates, fees, or ad10 ditional charges required to be disclosed under such regu11 lations shall apply only to the additional minutes to be 

12 purchased and shall be disclosed clearly and conspicuously 

13 to the consumer before the completion of such purchase. 

14 (f) NO FALSE, MISLEADING, OR DECEPTIVE DISCLO15 SURES.—The regulations promulgated under subsection 

16 (a) shall prohibit the inclusion of any false, misleading, 

17 or deceptive representations relating to the terms and con18 ditions of the prepaid calling card in or on the prepaid 

19 calling card, packaging, advertising, or other promotional 

20 material containing a disclosure required by such regula21 tions. 

22 (g) ADDITIONAL AUTHORITY CONCERNING MANNER

23 OF DISCLOSURES.—The regulations promulgated under 

24 subsection (a) may include requirements concerning the 

25 order, format, presentation, and design of the required 


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1 disclosures and may establish and require the use of uni2 form terms, symbols, or categories to describe or disclose 

3 rates, fees, and additional charges, if the Commission 

4 finds that such requirements will assist consumers in mak5 ing purchasing decisions and effectuate the purposes of 

6 this Act. 

7 (h) FACTORS FOR CONSIDERATION.—In promul8 gating regulations under subsection (a), the Commission 

9 shall— 

10 (1) take into consideration the need for clear 

11 disclosures that provide for easy comprehension and 

12 comparison by consumers, taking into account the 

13 size of prepaid calling cards; and 

14 (2) take into consideration the views of States. 

15 (i) LIMITATION.—In promulgating regulations under 

16 subsection (a), the Commission may not specify the rates, 

17 fees, or additional charges or the terms and conditions of 

18 prepaid calling cards. 

19 SEC. 3. IMPLEMENTATION AND ENFORCEMENT BY FCC. 

20 (a) AUTHORITY OF THE COMMISSION.—The Commis21 sion shall implement and enforce this Act in the same 

22 manner, by the same means, and with the same jurisdic23 tion, powers, and duties as though all applicable terms and 

24 provisions of the Communications Act of 1934 (47 U.S.C. 


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1 151 et seq.) were incorporated into and made a part of 

2 this Act. 

3 (b) CONSULTATION BETWEEN FCC AND FTC.— 

4 (1) IN GENERAL.—In promulgating regulations 

5 under section 2(a) and in enforcing such regulations, 

6 the Commission shall consult with the Federal Trade 

7 Commission. 

8 (2) FTC REGULATIONS ON PREPAID CALLING

9 CARD DISCLOSURES.—If the Federal Trade Commis10 sion initiates a rulemaking proceeding to establish 

11 requirements relating to the disclosure of terms and 

12 conditions of prepaid calling cards, the Federal 

13 Trade Commission shall consult with the Commis14 sion to ensure that any such requirements and the 

15 enforcement of any such requirements by the Fed16 eral Trade Commission are not inconsistent with the 

17 regulations promulgated under section 2(a) and the 

18 enforcement of such regulations by the Commission. 

19 SEC. 4. ENFORCEMENT BY STATES. 

20 (a) IN GENERAL.— 

21 (1) CIVIL ACTIONS.—In any case in which the 

22 attorney general of a State, a State utility commis23 sion, or other consumer protection agency has rea24 son to believe that an interest of the residents of 

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1 fected by the engagement of any person in a practice 

2 that is prohibited by a regulation promulgated under 

3 section 2(a), the State utility commission or other 

4 consumer protection agency, if authorized by State 

5 law, or the State, as parens patriae, may bring a 

6 civil action on behalf of the residents of such State 

7 in an appropriate district court of the United States 

8 or any other court of competent jurisdiction to— 

9 (A) enjoin such practice; 

10 (B) enforce compliance with such regula11 tion; 

12 (C) obtain damages, restitution, or other 

13 compensation on behalf of residents of the 

14 State; or 

15 (D) obtain such other relief as the court 

16 may consider to be appropriate. 

17 (2) NOTICE TO THE COMMISSION.— 

18 (A) IN GENERAL.—Before filing an action 

19 under this subsection, the State shall provide to 

20 the Commission— 

21 (i) written notice of the action; and 

22 (ii) a copy of the complaint for the ac23 tion. 

24 (B) EXEMPTION.— 


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1 (i) IN GENERAL.—Subparagraph (A) 

2 shall not apply with respect to the filing of 

3 an action by a State under this subsection 

4 if the attorney general or other appropriate 

5 officer determines that it is not feasible to 

6 provide the notice described in such sub7 paragraph before the filing of the action. 

8 (ii) NOTIFICATION.—In an action de9 scribed in clause (i), the State shall pro10 vide notice and a copy of the complaint to 

11 the Commission at the same time as the 

12 State files the action. 

13 (b) INTERVENTION BY COMMISSION.— 

14 (1) IN GENERAL.—On receiving notice under 

15 subsection (a)(2), the Commission shall have the 

16 right to intervene in the action that is the subject 

17 of the notice. 

18 (2) EFFECT OF INTERVENTION.—If the Com19 mission intervenes in an action under subsection (a), 

20 it shall have the right— 

21 (A) to be heard with respect to any matter 

22 that arises in such action; 

23 (B) to remove the action to the appro24 priate district court of the United States; and 

25 (C) to file a petition for appeal. 


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1 (c) CONSTRUCTION.—For purposes of bringing any 

2 civil action under subsection (a), nothing in this section 

3 shall be construed to prevent an attorney general of a 

4 State, a State utility commission, or other consumer pro5 tection agency authorized by State law from exercising the 

6 powers conferred on the attorney general or other appro7 priate official by the laws of such State to— 

8 (1) conduct investigations; 

9 (2) administer oaths or affirmations; 

10 (3) compel the attendance of witnesses or the 

11 production of documentary and other evidence; or 

12 (4) enforce any State law. 

13 (d) ACTION BY THE COMMISSION MAY PRECLUDE

14 STATE ACTION.—In any case in which an action is insti15 tuted by or on behalf of the Commission for violation of 

16 a regulation promulgated under section 2(a), no State 

17 may, during the pendency of such action, institute an ac18 tion under subsection (a) against any defendant named 

19 in the complaint in the action instituted by or on behalf 

20 of the Commission for any violation of such regulation al21 leged in such complaint. 

22 SEC. 5. EFFECT ON OTHER LAW. 

23 (a) FCC AUTHORITY.—Nothing in this Act shall be 

24 construed to— 


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1 (1) limit the authority of the Commission, 

2 under any other provision of law, with respect to dis3 closure of the terms and conditions of prepaid call4 ing cards; or 

5 (2) affect any proceeding initiated by the Com6 mission prior to the date of the enactment of this 

7 Act with respect to disclosure of the terms and con8 ditions of prepaid calling cards. 

9 (b) PREEMPTION OF STATE LAW.—After the date on 

10 which final regulations are promulgated under section 

11 2(a), no State or political subdivision of a State may es12 tablish or continue in effect any provision of law that con13 tains requirements regarding disclosures to be printed on 

14 prepaid calling cards or the packaging of prepaid calling 

15 cards or included in advertising or other promotional ma16 terial with respect to prepaid calling cards, unless such 

17 requirements are identical to the requirements of such reg18 ulations. 

19 SEC. 6. STUDIES. 

20 (a) GAO STUDY.—Beginning 2 years after the date 

21 on which final regulations are promulgated under section 

22 2(a), the Comptroller General of the United States shall 

23 conduct a study of the effectiveness of this Act and the 

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1 port on such study to Congress not later than 3 years after 

2 the date of the enactment of this Act. 

3 (b) FCC STUDY.—The Commission shall, in con4 sultation with the Federal Trade Commission, conduct a 

5 study of the extent to which the business practices of the 

6 prepaid calling card industry intended to be addressed by 

7 this Act exist in the prepaid commercial mobile service in8 dustry and shall submit a report on such study, including 

9 recommendations, if any, to Congress not later than 3 

10 years after the date of the enactment of this Act. 

11 SEC. 7. DEFINITIONS. 

12 (a) INCORPORATION OF DEFINITIONS FROM COMMU13 NICATIONS ACT OF 1934.—In this Act, a term that is de14 fined in section 3 of the Communications Act of 1934 (47 

15 U.S.C. 153) shall have the meaning given such term in 

16 such section. 

17 (b) ADDITIONAL DEFINITIONS.—The following addi18 tional definitions apply in this Act: 

19 (1) ADDITIONAL CHARGE.—The term ‘‘addi20 tional charge’’ means any charge assessed by a pre21 paid calling card provider or prepaid calling card 

22 distributor for the use of a prepaid calling card, 

23 other than a fee or rate. 

24 (2) COMMERCIAL MOBILE SERVICE.—The term 

25 ‘‘commercial mobile service’’ has the meaning given 


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1 such term in section 332 of the Communications Act 

2 of 1934 (47 U.S.C. 332). 

3 (3) COMMISSION.—The term ‘‘Commission’’ 

4 means the Federal Communications Commission. 

5 (4) FEES.—The term ‘‘fees’’ includes all 

6 charges, fees, taxes, or surcharges applicable to a 

7 prepaid calling card that are— 

8 (A) required by Federal law or regulation 

9 or order of the Commission or by the laws and 

10 regulations of any State or political subdivision 

11 of a State; or 

12 (B) expressly permitted to be assessed 

13 under Federal law or regulation or order of the 

14 Commission or under the laws and regulations 

15 of any State or political subdivision of a State. 

16 (5) INTERNATIONAL PREFERRED DESTINA17 TION.—The term ‘‘international preferred destina18 tion’’ means one or more specific international des19 tinations named on a prepaid calling card, on the 

20 packaging material accompanying a prepaid calling 

21 card, or in the advertising or other promotional ma22 terial with respect to a prepaid calling card. 

23 (6) PREPAID CALLING CARD.—The term ‘‘pre24 paid calling card’’ has the meaning given such term 

25 in section 64.5000 of the Commission’s regulations 


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1 (47 C.F.R. 64.5000). Such term shall also include 

2 calling cards that use interconnected VoIP service or 

3 a successor protocol. Such term shall also include an 

4 electronic or other mechanism that allows users to 

5 pay in advance for a specified amount of calling. 

6 Such term shall not include— 

7 (A) calling cards or other rights of use 

8 that are provided for free or at no additional 

9 cost as a promotional item accompanying a 

10 product or service purchased by a consumer; 

11 (B) any card, device, or other right of use, 

12 the purchase of which establishes a customer13 carrier relationship with a provider of commer14 cial mobile service or wireless hybrid service, or 

15 that provides access to a commercial mobile 

16 service or wireless hybrid service account where17 in the purchaser has a pre-existing relationship 

18 with the provider; or 

19 (C) payphone service (as defined in section 

20 276 of the Communications Act of 1934 (47 

21 U.S.C. 276)). 

22 (7) PREPAID CALLING CARD DISTRIBUTOR.— 

23 The term ‘‘prepaid calling card distributor’’ means 

24 any entity or person that purchases prepaid calling 

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1 other prepaid calling card distributor and sells, re2 sells, issues, or distributes such cards to one or more 

3 distributors of such cards or to one or more retail 

4 sellers of such cards. Such term shall not include— 

5 (A) any retail seller whose only activity 

6 with respect to the sale of prepaid calling cards 

7 is point-of-sale transactions with end-user cus8 tomers; or 

9 (B) any person whose only activity with re10 spect to the sale of prepaid calling cards is the 

11 transport or delivery of such cards. 

12 (8) PREPAID CALLING CARD PROVIDER.—The 

13 term ‘‘prepaid calling card provider’’ has the mean14 ing given such term in section 64.5000 of the Com15 mission’s regulations (47 C.F.R. 64.5000). Such 

16 term shall also include— 

17 (A) a provider of a prepaid calling card 

18 that uses interconnected VoIP service or a suc19 cessor protocol; and 

20 (B) a provider of a prepaid calling card 

21 that allows users to pay in advance for a speci22 fied amount of minutes through an electronic or 

23 other mechanism. 

24 (9) WIRELESS HYBRID SERVICE.—The term 

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1 grates both commercial mobile service and inter2 connected VoIP service. 

3 SEC. 8. DATE OF APPLICATION. 

4 This Act shall apply with respect to— 

5 (1) any prepaid calling card issued or placed 

6 into the stream of commerce beginning 180 days 

7 after the date on which final regulations are promul8 gated under section 2(a); and 

9 (2) any advertising, other promotional material, 

10 or voice prompt regarding a prepaid calling card 

11 that is disseminated beginning 180 days after the 

12 date on which final regulations are promulgated 

13 under section 2(a). 

Æ 


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