I

106TH CONGRESS

2D SESSION H. R. 5619

To require the Federal Communications Commission and the Federal Trade

Commission to prevent fraudulent and misleading advertising by carriers

providing ‘‘dial-around’’ long distance services.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 1, 2000

Mrs. LOWEY (for herself, Mr. BROWN of Ohio, Ms. MCKINNEY, Mr. KILDEE,

and Mr. RANGEL) introduced the following bill; which was referred to the

Committee on Commerce

A BILL

To require the Federal Communications Commission and

the Federal Trade Commission to prevent fraudulent and

misleading advertising by carriers providing ‘‘dialaround’’ long distance services.

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 ‘‘Save Consumers Ag5 gravation and Money Act of 2000’’.
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1 SEC. 2. RATE DISCLOSURES BY PROVIDERS OF DIAL2 AROUND SERVICES.

3 Title II of the Communications Act of 1934 is

4 amended by inserting after section 231 (47 U.S.C. 231)

5 the following new section:

6 ‘‘SEC. 232. RATE DISCLOSURES BY PROVIDERS OF DIAL7 AROUND SERVICES.

8 ‘‘(a) DEFINITIONS.—As used in this section:

9 ‘‘(1) DIAL-AROUND SERVICES.—The term ‘dial10 around services’ means a product or service by which

11 a person may use a seven-digit code to bypass such

12 person’s preferred interstate carrier to gain access to

13 the telecommunications services of another carrier.

14 ‘‘(2) CONSUMER.—The term ‘consumer’ means

15 a person initiating any interstate telephone call

16 using a seven-digit code to obtain dial-around serv17 ices.

18 ‘‘(3) PREFERRED INTERSTATE CARRIER.—The

19 term ‘preferred interstate carrier’ means the carrier

20 that provides interstate service to a consumer on a

21 prescribed basis.

22 ‘‘(4) PRESUBSCRIBED BASIS.—The term

23 ‘presubscribed basis’ means the selection of a com24 mon carrier to carry all interstate calls initiated by

25 dialing ‘1’ or ‘0’ plus the area code, plus the termi26 nating telephone number, or by dialing ‘011’ or ‘00’.
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1 ‘‘(5) PROVIDER OF DIAL-AROUND SERVICES.—

2 The term ‘provider of dial-around services’ means

3 any common carrier that provides interexchange

4 services, or any other person determined by the

5 Commission to be providing interexchange services,

6 through the use of a dial-around code.

7 ‘‘(b) REQUIREMENTS FOR PROVIDERS.—Beginning

8 not later than 90 days after the date of enactment of this

9 section, each provider of dial-around services shall, at a

10 minimum—

11 ‘‘(1) identify itself, audibly and distinctly, to

12 the consumer at the beginning of each telephone call

13 and before the consumer incurs any charge for the

14 call;

15 ‘‘(2) disclose immediately to the consumer,

16 upon request and at no charge to the consumer—

17 ‘‘(A) a quote of its rates or charges for the

18 call;

19 ‘‘(B) the methods by which such rates or

20 charges will be collected; and

21 ‘‘(C) the methods by which complaints con22 cerning such rates, charges, or collection prac23 tices will be resolved; and

24 ‘‘(3) permit the consumer to terminate the tele25 phone call at no charge before the call is connected.
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1 ‘‘(c) GENERAL RULEMAKING REQUIRED.—

2 ‘‘(1) RULEMAKING PROCEEDING.—The Com3 mission shall conduct a rulemaking proceeding pur4 suant to this section and section 201(b) to prescribe

5 regulations to—

6 ‘‘(A) protect consumers from unfair and

7 deceptive practices relating to their use of dial8 around services to place interstate telephone

9 calls; and

10 ‘‘(B) ensure that consumers have the infor11 mation necessary to make informed choices in

12 making such calls.

13 ‘‘(2) CONTENTS OF REGULATIONS.—The regu14 lations prescribed under this section shall—

15 ‘‘(A) contain provisions to implement each

16 of the requirements of this section; and

17 ‘‘(B) contain such other provisions as the

18 Commission determines necessary to carry out

19 this section and section 201(b) and the pur20 poses and policies of this section and section

21 201(b).

22 ‘‘(d) STATUTORY CONSTRUCTION.—Nothing in this

23 section shall be construed to alter the obligations, powers,

24 or duties of common carriers or the Commission under

25 section 201(b) on the other sections of this Act.’’.
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1 SEC. 3. PREVENTION OF FRAUDULENT ADVERTISING OF

2 DIAL-AROUND SERVICES.

3 (a) AMENDMENT.—Section 201 of the Telephone

4 Consumer Protection Act of 1991 (15 U.S.C. 5711) is

5 amended—

6 (1) by redesignating subsections (b) and (c) as

7 subsections (c) and (d), respectively; and

8 (2) by inserting after subsection (a) the fol9 lowing new subsection:

10 ‘‘(b) DIAL-AROUND SERVICES ADVERTISING.—

11 ‘‘(1) ADVERTISING REGULATIONS.—The Com12 mission shall prescribe rules in accordance with this

13 subsection to prohibit unfair and deceptive acts and

14 practices in any advertisement for dial-around serv15 ices. Such rules shall require that the person offer16 ing such dial-around services—

17 ‘‘(A) clearly and conspicuously disclose in

18 any advertising the cost of the use of such dial19 around services, including the total cost or the

20 cost per minute and any other fees for that

21 service and for any other dial-around service to

22 which the caller may be transferred;

23 ‘‘(B) be prohibited from using advertise24 ments that emit electronic tones which can

25 automatically dial a dial-around telephone num26 ber;
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1 ‘‘(C) ensure that, whenever the dial-around

2 code number to be called is shown in television

3 and print media advertisements, the charges for

4 dial-around services are clear and conspicuous

5 and (when shown in television advertisements)

6 displayed for the same duration as that number

7 is displayed; and

8 ‘‘(D) in delivering any telephone message

9 soliciting calls to a dial-around service, specify

10 clearly, and at no less than the audible volume

11 of the solicitation, the total cost and the cost

12 per minute and any other fees for that service

13 and for any other dial-around service to which

14 the caller may be transferred.

15 ‘‘(3) ACCESS TO INFORMATION.—The Commis16 sion shall by rule require a common carrier that pro17 vides telephone services to a provider of dial-around

18 services to make available to the Commission any

19 records and financial information maintained by

20 such carrier relating to the arrangements (other

21 than for the provision of local exchange service) be22 tween such carrier and any provider of dial-around

23 services.

24 ‘‘(4) EVASIONS.—The rules issued by the Com25 mission under this section shall include provisions to
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1 prohibit unfair or deceptive acts or practices that

2 evade such rules or undermine the rights provided to

3 customers under this title, including through the use

4 of alternative billing or other procedures.

5 ‘‘(5) TREATMENT OF RULES.—A rule issued

6 under this subsection shall be treated as a rule

7 issued under section 18(a)(1)(B) of the Federal

8 Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).

9 ‘‘(6) EFFECT ON FCC.—Nothing in this section

10 shall be construed to limit or otherwise alter the au11 thority of the Federal Communications Commission

12 under section 201(b), section 232, or any other pro13 visions, of the Communications Act of 1934.’’.

14 (b) CONFORMING AMENDMENTS.—

15 (1) DEADLINE FOR REGULATIONS.—Section

16 201(c) of such Act (as redesignated by subsection

17 (a)(1)) is amended by inserting after the first sen18 tence the following: ‘‘The Commission shall prescribe

19 the rules under subsection (b) within 270 days after

20 the date of enactment of the Save Consumers Ag21 gravation and Money Act of 2000.’’.

22 (2) CROSS REFERENCES.—Sections 202, 203,

23 and 204 of such Act are amended by striking ‘‘sec24 tion 201(a)’’ each place it appears and inserting

25 ‘‘subsection (a) or (b) of section 201’’.
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1 (3) HEADING.—The heading of section 201(a)

2 is amended by striking ‘‘IN GENERAL’’ and inserting

3 ‘‘PAY-PER-CALL SERVICES REGULATIONS’’.

4 (4) DEFINITION.—Section 204 of such Act is

5 amended by adding at the end the following new

6 paragraph:

7 ‘‘(5) The term ‘dial-around services’ has the

8 meaning provided in section 232(a) of the Commu9 nications Act of 1934.’’.

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