I 
111TH CONGRESS 
1ST SESSION H. R. 3993 
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 
A BILL 
To require accurate and reasonable disclosure of the terms 
and conditions of prepaid telephone calling cards and 
services. 
Be it enacted by the Senate and House of Representa-
tives 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. DEFINITIONS. 
For purposes of this Act, the following definitions 
apply: 
(1) The term ‘‘Commission’’ means the Federal 
Trade Commission. 
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(2) The term ‘‘prepaid calling card’’ has the 
meaning given the term ‘‘prepaid calling card’’ by 
section 64.5000(a) of the Federal Communications 
Commission’s regulations (47 C.F.R. 64.5000(a)). 
Such term shall also include calling cards that use 
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 wireless 
telecommunications service or wireless hybrid 
service, or that provides access to a wireless 
telecommunications service or wireless hybrid 
service account wherein the purchaser has a 
pre-existing relationship with the wireless serv-
ice provider; or 
(C) payphone service, as that term is de-
fined in section 276(d) of the Communications 
Act of 1934 (47 U.S.C. 276(d)). 
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(3) The term ‘‘prepaid calling card provider’’ 
has the meaning given the term ‘‘prepaid calling 
card provider’’ by section 64.5000(b) of the Federal 
Communications 
Commission’s 
regulations 
(47 
C.F.R. 64.5000(b)). Such term shall also include— 
(A) a provider of a prepaid calling card 
that uses VoIP service or a successor protocol; 
and 
(B) a provider of a prepaid calling card 
that allows users to pay in advance for a speci-
fied amount of minutes through an electronic or 
other mechanism. 
(4) 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. 
(5) The term ‘‘wireless hybrid service’’ is de-
fined as a service that integrates both commercial 
mobile radio service (as defined by section 20.3 of 
the Federal Communications Commission’s regula-
tions (47 C.F.R. 20.3)) and VoIP service. 
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(6) The term ‘‘VoIP service’’ has the meaning 
given the term ‘‘interconnected Voice over Internet 
protocol service’’ by section 9.3 of the Federal Com-
munications Commission’s regulations (47 C.F.R. 
9.3). Such term shall include any voice calling serv-
ice that utilizes a voice over Internet protocol or any 
successor protocol in the transmission of the call. 
(7) 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 Federal Communications Com-
mission 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 
Federal Communications Commission or under 
the laws and regulations of any State or polit-
ical subdivision of a State. 
(8) The term ‘‘additional charge’’ means any 
charge assessed by a prepaid calling card provider or 
prepaid calling card distributor for the use of a pre-
paid calling card, other than a fee or rate. 
(9) The term ‘‘international preferred destina-
tion’’ means one or more specific international des-
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tinations named on a prepaid calling card or on the 
packaging material accompanying a prepaid calling 
card. 
SEC. 3. REQUIRED DISCLOSURES OF PREPAID CALLING 
CARDS. 
(a) REQUIRED DISCLOSURE.—Any prepaid calling 
card provider or prepaid calling card distributor shall ac-
curately disclose in a clear and conspicuous manner the 
following information relating to the terms and conditions 
of the prepaid calling card: 
(1) The name of the prepaid calling card pro-
vider and such provider’s customer service telephone 
number and hours of service. 
(2)(A) The number of domestic interstate min-
utes 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. 
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(3)(A) The applicable per minute rate for all in-
dividual international destinations served by the card 
at the time of purchase; or 
(B) a toll-free customer service number and 
website (if the provider maintains a website) where 
a consumer may obtain the information described in 
subparagraph (A) and a statement that such infor-
mation may be obtained through such toll-free cus-
tomer service number and website. 
(4) The following terms and conditions per-
taining 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 min-
utes or rates will be available. 
(D) Applicable policies relating to refund, 
recharge, and any predetermined decrease in 
value of such card over a period of time. 
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(E) Any expiration date applicable to the 
prepaid calling card or the minutes available 
with such calling card. 
(b) LOCATION OF DISCLOSURE AND LANGUAGE RE-
QUIREMENT.— 
(1) CLEAR AND CONSPICUOUS.— 
(A) CARDS.—The disclosures required 
under subsection (a) shall be printed in plain 
English language (except as provided in para-
graph (2)) in a clear and conspicuous manner 
and location on the prepaid calling card. 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, the disclosures re-
quired under subsection (a) shall be displayed 
in plain English language (except as provided in 
paragraph (2)) in a clear and conspicuous man-
ner and location on the Internet website that 
the consumer must access prior to purchasing 
such card. 
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(C) 
ADVERTISING
AND
OTHER
PRO-
MOTIONAL
MATERIAL.—Any advertising for a 
prepaid calling card that contains any represen-
tation, expressly or by implication, regarding 
the dollar value, the per minute rate, or the 
number of minutes provided by the card shall 
include in a clear and conspicuous manner and 
location all the disclosures described in sub-
section (a). 
(2) FOREIGN LANGUAGES.—If a language other 
than English is prominently used on a prepaid call-
ing card, its packaging, or in point-of-sale adver-
tising, Internet advertising, or promotional material 
for such card, the disclosures required by this sec-
tion shall be disclosed in that language on such card, 
packaging, advertisement, or promotional material. 
(c) MINUTES ANNOUNCED, PROMOTED, OR ADVER-
TISED THROUGH VOICE PROMPTS.—Any information pro-
vided to a consumer by any voice prompt given to the con-
sumer at the time the consumer uses the prepaid calling 
card relating to the remaining value of the calling card 
or the number of minutes available from the calling card 
shall be accurate, taking into account the application of 
the fees and additional charges required to be disclosed 
under subsection (a). 
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(d) DISCLOSURES REQUIRED UPON PURCHASE OF 
ADDITIONAL MINUTES.—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 or additional charges re-
quired to be disclosed under subsection (a) shall apply only 
to the additional minutes to be purchased and shall be 
disclosed to the consumer before the completion of such 
purchase. 
SEC. 4. ENFORCEMENT BY THE FEDERAL TRADE COMMIS-
SION. 
(a) UNFAIR AND DECEPTIVE ACT OR PRACTICE.— 
A violation of section 3 shall be treated as a violation of 
a rule defining an unfair or deceptive act or practice pre-
scribed under section 18(a)(1)(B) of the Federal Trade 
Commission Act (15 U.S.C. 57a(a)(1)(B)). 
(b) AUTHORITY OF THE COMMISSION.—The Commis-
sion shall enforce this Act in the same manner and by 
the same means as though all applicable terms and provi-
sions of the Federal Trade Commission Act were incor-
porated into and made a part of this Act. Notwithstanding 
any provision of the Federal Trade Commission Act or any 
other provision of law and solely for purposes of this Act, 
common carriers subject to the Communications Act of 
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1934 (47 U.S.C. 151 et seq.) and any amendment thereto 
shall be subject to the jurisdiction of the Commission. 
(c) RULEMAKING AUTHORITY.—Not later than 180 
days after the date of enactment of this Act, the Commis-
sion shall, in consultation with the Federal Communica-
tions Commission and in accordance with section 553 of 
title 5, United States Code, issue regulations to carry out 
this Act. In promulgating such regulations, the Commis-
sion 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) give due consideration to the views of the 
Federal Communications Commission with regard to 
matters for which that Commission has particular 
expertise and authority and shall take into consider-
ation the views of States. 
In promulgating such regulations, the Commission shall 
not issue regulations that otherwise affect the rates, 
terms, and conditions of prepaid calling cards. 
(d) SAVINGS PROVISION.—Nothing in this Act shall 
be construed to limit the authority of the Commission 
under any other provision of law. Except to the extent ex-
pressly provided in this Act, nothing in this Act shall be 
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construed to alter or affect the exemption for common car-
riers provided by section 5(a)(2) of the Federal Trade 
Commission Act (15 U.S.C. 45(a)(2)). Nothing in this Act 
is intended to limit the authority of the Federal Commu-
nications Commission. 
SEC. 5. STATE ENFORCEMENT. 
(a) IN GENERAL.— 
(1) CIVIL ACTIONS.—In any case in which the 
attorney general of a State, a State utility commis-
sion, or other consumer protection agency has rea-
son to believe that an interest of the residents of 
that State has been or is threatened or adversely af-
fected by the engagement of any person in a practice 
that is prohibited under this Act, 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 that State in a district court of the 
United States of appropriate jurisdiction, or any 
other court of competent jurisdiction to— 
(A) enjoin that practice; 
(B) enforce compliance with this Act; 
(C) obtain damage, restitution, or other 
compensation on behalf of residents of the 
State; or 
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(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 paragraph (1), the State shall provide to 
the Commission— 
(i) written notice of the action; and 
(ii) a copy of the complaint for the ac-
tion. 
(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 that sub-
paragraph before the filing of the action. 
(ii) NOTIFICATION.—In an action de-
scribed in clause (i), the State shall pro-
vide 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 
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right to intervene in the action that is the subject 
of the notice. 
(2) EFFECT OF INTERVENTION.—If the Com-
mission intervenes in an action under subsection (a), 
it shall have the right— 
(A) to be heard with respect to any matter 
that arises in that action; 
(B) to remove the action to the appro-
priate United States District Court; 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 pro-
tection agency authorized by State law from exercising the 
powers conferred on the attorney general or other appro-
priate official by the laws of that 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 insti-
tuted by or on behalf of the Commission for violation of 
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this Act, or any regulation issued under this Act, no State 
may, during the pendency of that action, institute an ac-
tion under subsection (a) against any defendant named 
in the complaint in that action for violation of this Act 
or regulation. 
(e) VENUE; SERVICE OF PROCESS.— 
(1) VENUE.—Any action brought under sub-
section (a) may be brought in the district court of 
the United States that meets applicable require-
ments relating to venue under section 1391 of title 
28, United States Code. 
(2) SERVICE
OF
PROCESS.—In an action 
brought under subsection (a), process may be served 
in any district in which the defendant— 
(A) is an inhabitant; or 
(B) may be found. 
(f) LIMITATION.—No prepaid calling card distributor 
who is a retail merchant or seller of prepaid calling cards, 
who, with respect to such cards, is exclusively engaged in 
point-of-sale transactions may be liable for damages in an 
action authorized under this section unless such dis-
tributor acted with actual knowledge that the act or prac-
tice giving rise to such action is unfair or deceptive and 
is unlawful under this Act. 
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SEC. 6. APPLICATION. 
This Act shall apply to— 
(1) any prepaid calling card issued or placed 
into the stream of commerce beginning 90 days after 
the date on which final regulations are promulgated 
pursuant to section 4(c); and 
(2) any advertising, promotion, point-of-sale 
material or voice prompt regarding a prepaid calling 
card that is disseminated beginning 90 days after 
the date on which final regulations are promulgated 
pursuant to section 4(c). 
If the Commission determines that it is not feasible for 
prepaid calling card providers or distributors to comply 
with the requirements of this Act with respect to prepaid 
calling cards issued or placed into the stream of commerce 
after such 90-day period, the Commission may extend 
such period by not more than an additional 90 days. 
SEC. 7. EFFECT ON STATE LAWS. 
Nothing in this Act shall affect the authority of any 
State to establish or continue in effect a provision of the 
law of a State relating to regulation of prepaid calling 
cards, prepaid calling card distributors, prepaid calling 
services, or prepaid calling service providers, except to the 
extent that such provision of law is inconsistent with the 
provisions of this Act or a regulation prescribed under this 
Act, and then only to the extent of such inconsistency. 
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A provision of the law of a State is not inconsistent with 
this Act or a regulation prescribed under this Act if such 
provision provides equal or greater protection to con-
sumers than what is provided under this Act or the regula-
tions prescribed under this Act. 
SEC. 8. GAO STUDY. 
Beginning 2 years after the date on which final regu-
lations are promulgated pursuant to section 4(c), the 
Comptroller General shall conduct a study of the effective-
ness of this Act and the disclosures required under this 
Act and shall submit a report of such study to Congress 
not later than 3 years after the date of enactment of this 
Act. 
Æ 
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