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Union Calendar No. 290 

111TH CONGRESS 

2D SESSION H. R. 3993 

[Report No. 111–507] 

To require accurate and reasonable disclosure of the terms and conditions 

of prepaid telephone calling cards and services. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 3, 2009 

Mr. ENGEL introduced the following bill; which was referred to the Committee 

on Energy and Commerce 

JUNE 15, 2010 

Additional sponsors: Mr. BURTON of Indiana and Ms. TSONGAS

JUNE 15, 2010 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on November 3, 2009] 

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A BILL 

To require accurate and reasonable disclosure of the terms 

and conditions of prepaid telephone calling cards and 

services. 

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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’’. 

6 SEC. 2. DEFINITIONS. 

7 For purposes of this Act, the following definitions 

8 apply: 

9 (1) The term ‘‘Commission’’ means the Federal 

10 Trade Commission. 

11 (2) The term ‘‘prepaid calling card’’ has the 

12 meaning given the term ‘‘prepaid calling card’’ by 

13 section 64.5000(a) of the Federal Communications 

14 Commission’s regulations (47 C.F.R. 64.5000(a)). 

15 Such term shall also include calling cards that use 

16 VoIP service or a successor protocol. Such term shall 

17 also include an electronic or other mechanism that al18 lows users to pay in advance for a specified amount 

19 of calling. Such term shall not include— 

20 (A) calling cards or other rights of use that 

21 are provided for free or at no additional cost as 

22 a promotional item accompanying a product or 

23 service purchased by a consumer; 

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

25 the purchase of which establishes a customer-carmstockstill on DSKH9S0YB1PROD with BILLS

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1 rier relationship with a provider of wireless tele2 communications service or wireless hybrid serv3 ice, or that provides access to a wireless tele4 communications service or wireless hybrid serv5 ice account wherein the purchaser has a pre-ex6 isting relationship with the wireless service pro7 vider; or 

8 (C) payphone service, as that term is de9 fined in section 276(d) of the Communications 

10 Act of 1934 (47 U.S.C. 276(d)). 

11 (3) The term ‘‘prepaid calling card provider’’ 

12 has the meaning given the term ‘‘prepaid calling card 

13 provider’’ by section 64.5000(b) of the Federal Com14 munications Commission’s regulations (47 C.F.R. 

15 64.5000(b)). Such term shall also include— 

16 (A) a provider of a prepaid calling card 

17 that uses VoIP service or a successor protocol; 

18 and 

19 (B) a provider of a prepaid calling card 

20 that allows users to pay in advance for a speci21 fied amount of minutes through an electronic or 

22 other mechanism. 

23 (4) The term ‘‘prepaid calling card distributor’’ 

24 means any entity or person that purchases prepaid 

25 calling cards from a prepaid calling card provider or 

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1 another 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 sell4 ers 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 (5) The term ‘‘wireless hybrid service’’ is defined 

13 as a service that integrates both commercial mobile 

14 radio service (as defined by section 20.3 of the Federal 

15 Communications Commission’s regulations (47 C.F.R. 

16 20.3)) and VoIP service. 

17 (6) The term ‘‘VoIP service’’ has the meaning 

18 given the term ‘‘interconnected Voice over Internet 

19 protocol service’’ by section 9.3 of the Federal Com20 munications Commission’s regulations (47 C.F.R. 

21 9.3). Such term shall include any voice calling service 

22 that utilizes a voice over Internet protocol or any suc23 cessor protocol in the transmission of the call. 

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1 (7) The term ‘‘fees’’ includes all charges, fees, 

2 taxes, or surcharges applicable to a prepaid calling 

3 card that are— 

4 (A) required by Federal law or regulation 

5 or order of the Federal Communications Com6 mission or by the laws and regulations of any 

7 State or political subdivision of a State; or 

8 (B) expressly permitted to be assessed under 

9 Federal law or regulation or order of the Federal 

10 Communications Commission or under the laws 

11 and regulations of any State or political subdivi12 sion of a State. 

13 (8) The term ‘‘additional charge’’ means any 

14 charge assessed by a prepaid calling card provider or 

15 prepaid calling card distributor for the use of a pre16 paid calling card, other than a fee or rate. 

17 (9) The term ‘‘international preferred destina18 tion’’ means one or more specific international des19 tinations named on a prepaid calling card or on the 

20 packaging material accompanying a prepaid calling 

21 card. 

22 SEC. 3. REQUIRED DISCLOSURES OF PREPAID CALLING 

23 CARDS. 

24 (a) REQUIRED DISCLOSURE.—Any prepaid calling 

25 card provider or prepaid calling card distributor shall acmstockstill on DSKH9S0YB1PROD with BILLS

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1 curately disclose the following information relating to the 

2 terms and conditions of the prepaid calling card: 

3 (1) The name of the prepaid calling card pro4 vider and such provider’s customer service telephone 

5 number and hours of service, except that the hours of 

6 service may not be required to be disclosed if the pro7 vider’s customer service is provided and available 24 

8 hours a day, 7 days per week. 

9 (2)(A) The number of domestic interstate min10 utes available from the prepaid calling card and the 

11 number of available minutes for all international pre12 ferred destinations served by the prepaid calling card 

13 at the time of purchase; or 

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

15 the domestic interstate rate per minute provided by 

16 such card, and the applicable per minute rates for all 

17 international preferred destinations served by the pre18 paid calling card at the time of purchase. 

19 (3)(A) The applicable per minute rate for all in20 dividual international destinations served by the card 

21 at the time of purchase; or 

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

23 website (if the provider maintains a website) where a 

24 consumer may obtain the information described in 

25 subparagraph (A) and a statement that such informamstockstill on DSKH9S0YB1PROD with BILLS

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1 tion may be obtained through such toll-free customer 

2 service number and website. 

3 (4) The following terms and conditions per4 taining to, or associated with, the use of the prepaid 

5 calling card: 

6 (A) Any applicable fees associated with the 

7 use of the prepaid calling card. 

8 (B) A description of any additional charges 

9 associated with the use of the prepaid calling 

10 card and the amount of such charges. 

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

12 time for which the promoted or advertised min13 utes or rates will be available. 

14 (D) A description of the applicable policies 

15 relating to refund, recharge, and any predeter16 mined decrease in value of such card over a pe17 riod of time. 

18 (E) Any expiration date applicable to the 

19 prepaid calling card or the minutes available 

20 with such calling card. 

21 (b) LOCATION OF DISCLOSURE AND LANGUAGE RE22 QUIREMENT.— 

23 (1) CLEAR AND CONSPICUOUS.— 

24 (A) CARDS.—The disclosures required under 

25 subsection (a) shall be printed in plain English 

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1 language (except as provided in paragraph (2)) 

2 in a clear and conspicuous manner and location 

3 on the prepaid calling card, except as the Com4 mission may provide under paragraph (3). If the 

5 card is enclosed in packaging that obscures the 

6 disclosures on the card, such disclosures also 

7 shall be printed on the outside packaging of the 

8 card. 

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

10 requirements under subparagraph (A), in the 

11 case of a prepaid calling card that consumers 

12 purchase via the Internet, the disclosures re13 quired under subsection (a) shall be displayed in 

14 plain English language (except as provided in 

15 paragraph (2)) in a clear and conspicuous man16 ner and location on the Internet website that the 

17 consumer must access prior to purchasing such 

18 card. 

19 (C) ADVERTISING AND OTHER PRO20 MOTIONAL MATERIAL.—Any advertising or other 

21 promotional material for a prepaid calling card 

22 that contains any representation, expressly or by 

23 implication, regarding the dollar value, the per 

24 minute rate, or the number of minutes provided 

25 by the card shall include in a clear and conmstockstill on DSKH9S0YB1PROD with BILLS

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1 spicuous manner and location all the disclosures 

2 described in subsection (a), except as the Com3 mission may provide under paragraph (3). 

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

5 than English is prominently used on a prepaid call6 ing card, its packaging, or in point-of-sale adver7 tising, Internet advertising, or promotional material 

8 for such card, the disclosures required by this section 

9 shall be disclosed in that language on such card, 

10 packaging, advertisement, or promotional material. 

11 (3) DIFFERENT LOCATION OF CERTAIN INFORMA12 TION AS DETERMINED BY COMMISSION.—Notwith13 standing the requirements of paragraph (1), the Com14 mission may determine that some of the information 

15 required to be disclosed pursuant to subsection (a) 

16 does not need to be disclosed on the prepaid calling 

17 card, advertising, or other promotional material, if 

18 the Commission by regulation— 

19 (A) requires the information to be otherwise 

20 disclosed and available to consumers; and 

21 (B) determines that— 

22 (i) such disclosures provide for easy 

23 comprehension and comparison by con24 sumers; and 

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1 (ii) the remaining disclosures on the 

2 prepaid calling card, advertising, or other 

3 promotional material, include sufficient in4 formation to allow a consumer to effectively 

5 inquire about or seek clarification of the 

6 services provided by the calling card. 

7 (c) MINUTES ANNOUNCED, PROMOTED, OR ADVER8 TISED THROUGH VOICE PROMPTS.—Any information pro9 vided to a consumer by any voice prompt given to the con10 sumer at the time the consumer uses the prepaid calling 

11 card relating to the remaining value of the calling card or 

12 the number of minutes available from the calling card shall 

13 be accurate, taking into account the application of the fees 

14 and additional charges required to be disclosed under sub15 section (a). 

16 (d) DISCLOSURES REQUIRED UPON PURCHASE OF

17 ADDITIONAL MINUTES.—If a prepaid calling card permits 

18 a consumer to add value to the card or purchase additional 

19 minutes after the original purchase of the prepaid calling 

20 card, any changes to the rates or additional charges re21 quired to be disclosed under subsection (a) shall apply only 

22 to the additional minutes to be purchased and shall be dis23 closed clearly and conspicuously to the consumer before the 

24 completion of such purchase. 

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1 (e) NO FALSE, MISLEADING, OR DECEPTIVE DISCLO2 SURES.—No prepaid calling card, packaging, advertise3 ment, or other promotional material containing a disclo4 sure required pursuant to this section shall contain any 

5 false, misleading, or deceptive representations relating to 

6 the terms and conditions of the prepaid calling card. 

7 SEC. 4. FEDERAL TRADE COMMISSION AUTHORITY. 

8 (a) UNFAIR AND DECEPTIVE ACT OR PRACTICE.—A 

9 violation of section 3 shall be treated as a violation of a 

10 rule defining an unfair or deceptive act or practice pre11 scribed under section 18(a)(1)(B) of the Federal Trade 

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

13 (b) AUTHORITY OF THE COMMISSION.—The Commis14 sion shall enforce this Act in the same manner and by the 

15 same means as though all applicable terms and provisions 

16 of the Federal Trade Commission Act were incorporated 

17 into and made a part of this Act. Notwithstanding any pro18 vision of the Federal Trade Commission Act or any other 

19 provision of law and solely for purposes of this Act, common 

20 carriers subject to the Communications Act of 1934 (47 

21 U.S.C. 151 et seq.) and any amendment thereto shall be 

22 subject to the jurisdiction of the Commission. 

23 (c) RULEMAKING AUTHORITY.—Not later than 1 year 

24 after the date of enactment of this Act, the Commission 

25 shall, in consultation with the Federal Communications 

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1 Commission and in accordance with section 553 of title 5, 

2 United States Code, issue regulations to carry out this Act. 

3 In promulgating such regulations, the Commission shall— 

4 (1) take into consideration the need for clear dis5 closures that provide for easy comprehension and 

6 comparison by consumers, taking into account the 

7 size of prepaid calling cards; and 

8 (2) give due consideration to the views of the 

9 Federal Communications Commission with regard to 

10 matters for which that Commission has particular ex11 pertise and authority and shall take into consider12 ation the views of States. 

13 In promulgating such regulations, the Commission may 

14 prescribe requirements concerning the order, format, presen15 tation, and design of disclosures required by this Act and 

16 may establish and require the use of uniform terms, sym17 bols, or categories to describe or disclose fees and additional 

18 charges, if the Commission finds that such requirements 

19 will assist consumers in making purchasing decisions and 

20 effectuate the purposes of this Act. The Commission shall 

21 not issue regulations that otherwise specify the rates, terms, 

22 and conditions of prepaid calling cards. 

23 (d) SAVINGS PROVISION.—Nothing in this Act shall be 

24 construed to limit the authority of the Commission under 

25 any other provision of law. Except to the extent expressly 

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1 provided in this Act, nothing in this Act shall be construed 

2 to alter or affect the exemption for common carriers pro3 vided by section 5(a)(2) of the Federal Trade Commission 

4 Act (15 U.S.C. 45(a)(2)). Nothing in this Act is intended 

5 to limit the authority of the Federal Communications Com6 mission. 

7 (e) COORDINATION.—If the Federal Communications 

8 Commission initiates a rulemaking proceeding to establish 

9 requirements relating to the disclosure of terms and condi10 tions of prepaid calling cards, the Federal Communications 

11 Commission shall coordinate with the Federal Trade Com12 mission to ensure that any such requirements are not incon13 sistent with the requirements of this Act and the regulations 

14 issued under subsection (c). 

15 SEC. 5. STATE ENFORCEMENT. 

16 (a) IN GENERAL.— 

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

18 attorney general of a State, a State utility commis19 sion, or other consumer protection agency has reason 

20 to believe that an interest of the residents of that 

21 State has been or is threatened or adversely affected 

22 by the engagement of any person in a practice that 

23 is prohibited under this Act, the State utility commis24 sion or other consumer protection agency, if author25 ized by State law, or the State, as parens patriae, 

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1 may bring a civil action on behalf of the residents of 

2 that State in a district court of the United States of 

3 appropriate jurisdiction, or any other court of com4 petent jurisdiction to— 

5 (A) enjoin that practice; 

6 (B) enforce compliance with this Act; 

7 (C) obtain damage, restitution, or other 

8 compensation on behalf of residents of the State; 

9 or 

10 (D) obtain such other relief as the court 

11 may consider to be appropriate. 

12 (2) NOTICE TO THE COMMISSION.— 

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

14 under paragraph (1), the State shall provide to 

15 the Commission— 

16 (i) written notice of the action; and 

17 (ii) a copy of the complaint for the ac18 tion. 

19 (B) EXEMPTION.— 

20 (i) IN GENERAL.—Subparagraph (A) 

21 shall not apply with respect to the filing of 

22 an action by a State under this subsection, 

23 if the attorney general or other appropriate 

24 officer determines that it is not feasible to 

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1 provide the notice described in that sub2 paragraph before the filing of the action. 

3 (ii) NOTIFICATION.—In an action de4 scribed in clause (i), the State shall provide 

5 notice and a copy of the complaint to the 

6 Commission at the same time as the State 

7 files the action. 

8 (b) INTERVENTION BY COMMISSION.— 

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

10 subsection (a)(2), the Commission shall have the right 

11 to intervene in the action that is the subject of the no12 tice. 

13 (2) EFFECT OF INTERVENTION.—If the Commis14 sion intervenes in an action under subsection (a), it 

15 shall have the right— 

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

17 that arises in that action; 

18 (B) to remove the action to the appropriate 

19 United States District Court; and 

20 (C) to file a petition for appeal. 

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

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

23 shall be construed to prevent an attorney general of a State, 

24 a State utility commission, or other consumer protection 

25 agency authorized by State law from exercising the powers 

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1 conferred on the attorney general or other appropriate offi2 cial by the laws of that State to— 

3 (1) conduct investigations; 

4 (2) administer oaths or affirmations; 

5 (3) compel the attendance of witnesses or the 

6 production of documentary and other evidence; or 

7 (4) enforce any State law. 

8 (d) ACTION BY THE COMMISSION MAY PRECLUDE

9 STATE ACTION.—In any case in which an action is insti10 tuted by or on behalf of the Commission for violation of 

11 this Act, or any regulation issued under this Act, no State 

12 may, during the pendency of that action, institute an action 

13 under subsection (a) against any defendant named in the 

14 complaint in that action for violation of this Act or regula15 tion. 

16 (e) VENUE; SERVICE OF PROCESS.— 

17 (1) VENUE.—Any action brought under sub18 section (a) may be brought in the district court of the 

19 United States that meets applicable requirements re20 lating to venue under section 1391 of title 28, United 

21 States Code. 

22 (2) SERVICE OF PROCESS.—In an action brought 

23 under subsection (a), process may be served in any 

24 district in which the defendant— 

25 (A) is an inhabitant; or 

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1 (B) may be found. 

2 SEC. 6. APPLICATION. 

3 This Act shall apply to— 

4 (1) any prepaid calling card issued or placed 

5 into the stream of commerce beginning 180 days after 

6 the date on which final regulations are promulgated 

7 pursuant to section 4(c); and 

8 (2) any advertising, promotion, point-of-sale ma9 terial or voice prompt regarding a prepaid calling 

10 card that is disseminated beginning 180 days after 

11 the date on which final regulations are promulgated 

12 pursuant to section 4(c). 

13 SEC. 7. EFFECT ON STATE LAWS. 

14 After the date on which final regulations are promul15 gated pursuant to section 4(c), no State or political subdivi16 sion of a State may establish or continue in effect any pro17 vision of law that contains requirements regarding disclo18 sures to be printed on prepaid calling cards or packaging 

19 unless such requirements are identical to the requirements 

20 of section 3. 

21 SEC. 8. STUDIES. 

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

23 on which final regulations are promulgated pursuant to sec24 tion 4(c), the Comptroller General shall conduct a study 

25 of the effectiveness of this Act and the disclosures required 

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1 under this Act and shall submit a report of such study to 

2 Congress not later than 3 years after the date of enactment 

3 of this Act. 

4 (b) FTC STUDY.—The Commission shall, in consulta5 tion with the Federal Communications Commission, con6 duct a study of the extent to which the business practices 

7 of the prepaid calling card industry intended to be ad8 dressed by this Act exist in the prepaid wireless industry 

9 and shall submit a report of such study, including rec10 ommendations, if any, to Congress not later than 3 years 

11 after the date of enactment of this Act. 

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Union Calendar No. 290 

111TH CONGRESS 

2D SESSION H. R. 3993 

[Report No. 111–507] 

A BILL 

To require accurate and reasonable disclosure of 

calling cards and services. the terms and conditions of prepaid telephone 

JUNE 15, 2010 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 

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