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 ‘‘dial-
around’’ long distance 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 ‘‘Save Consumers Ag-
gravation and Money Act of 2000’’.
SEC. 2. RATE DISCLOSURES BY PROVIDERS OF DIAL-
AROUND SERVICES.
Title II of the Communications Act of 1934 is
amended by inserting after section 231 (47 U.S.C. 231)
the following new section:
‘‘SEC. 232. RATE DISCLOSURES BY PROVIDERS OF DIAL-
AROUND SERVICES.
‘‘(a) DEFINITIONS.—As used in this section:
‘‘(1) DIAL-AROUND SERVICES.—The term ‘dial-
around services’ means a product or service by which
a person may use a seven-digit code to bypass such
person’s preferred interstate carrier to gain access to
the telecommunications services of another carrier.
‘‘(2) CONSUMER.—The term ‘consumer’ means
a person initiating any interstate telephone call
using a seven-digit code to obtain dial-around serv-
ices.
‘‘(3) PREFERRED INTERSTATE CARRIER.—The
term ‘preferred interstate carrier’ means the carrier
that provides interstate service to a consumer on a
prescribed basis.
‘‘(4) 
PRESUBSCRIBED
BASIS.—The 
term
‘presubscribed basis’ means the selection of a com-
mon carrier to carry all interstate calls initiated by
dialing ‘1’ or ‘0’ plus the area code, plus the termi-
nating telephone number, or by dialing ‘011’ or ‘00’.
‘‘(5) PROVIDER OF DIAL-AROUND SERVICES.—
The term ‘provider of dial-around services’ means
any common carrier that provides interexchange
services, or any other person determined by the
Commission to be providing interexchange services,
through the use of a dial-around code.
‘‘(b) REQUIREMENTS FOR PROVIDERS.—Beginning
not later than 90 days after the date of enactment of this
section, each provider of dial-around services shall, at a
minimum—
‘‘(1) identify itself, audibly and distinctly, to
the consumer at the beginning of each telephone call
and before the consumer incurs any charge for the
call;
‘‘(2) disclose immediately to the consumer,
upon request and at no charge to the consumer—
‘‘(A) a quote of its rates or charges for the
call;
‘‘(B) the methods by which such rates or
charges will be collected; and
‘‘(C) the methods by which complaints con-
cerning such rates, charges, or collection prac-
tices will be resolved; and
‘‘(3) permit the consumer to terminate the tele-
phone call at no charge before the call is connected.
‘‘(c) GENERAL RULEMAKING REQUIRED.—
‘‘(1) RULEMAKING
PROCEEDING.—The Com-
mission shall conduct a rulemaking proceeding pur-
suant to this section and section 201(b) to prescribe
regulations to—
‘‘(A) protect consumers from unfair and
deceptive practices relating to their use of dial-
around services to place interstate telephone
calls; and
‘‘(B) ensure that consumers have the infor-
mation necessary to make informed choices in
making such calls.
‘‘(2) CONTENTS OF REGULATIONS.—The regu-
lations prescribed under this section shall—
‘‘(A) contain provisions to implement each
of the requirements of this section; and
‘‘(B) contain such other provisions as the
Commission determines necessary to carry out
this section and section 201(b) and the pur-
poses and policies of this section and section
201(b).
‘‘(d) STATUTORY CONSTRUCTION.—Nothing in this
section shall be construed to alter the obligations, powers,
or duties of common carriers or the Commission under
section 201(b) on the other sections of this Act.’’.
SEC. 3. PREVENTION OF FRAUDULENT ADVERTISING OF
DIAL-AROUND SERVICES.
(a) AMENDMENT.—Section 201 of the Telephone
Consumer Protection Act of 1991 (15 U.S.C. 5711) is
amended—
(1) by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively; and
(2) by inserting after subsection (a) the fol-
lowing new subsection:
‘‘(b) DIAL-AROUND SERVICES ADVERTISING.—
‘‘(1) ADVERTISING REGULATIONS.—The Com-
mission shall prescribe rules in accordance with this
subsection to prohibit unfair and deceptive acts and
practices in any advertisement for dial-around serv-
ices. Such rules shall require that the person offer-
ing such dial-around services—
‘‘(A) clearly and conspicuously disclose in
any advertising the cost of the use of such dial-
around services, including the total cost or the
cost per minute and any other fees for that
service and for any other dial-around service to
which the caller may be transferred;
‘‘(B) be prohibited from using advertise-
ments that emit electronic tones which can
automatically dial a dial-around telephone num-
ber;
‘‘(C) ensure that, whenever the dial-around
code number to be called is shown in television
and print media advertisements, the charges for
dial-around services are clear and conspicuous
and (when shown in television advertisements)
displayed for the same duration as that number
is displayed; and
‘‘(D) in delivering any telephone message
soliciting calls to a dial-around service, specify
clearly, and at no less than the audible volume
of the solicitation, the total cost and the cost
per minute and any other fees for that service
and for any other dial-around service to which
the caller may be transferred.
‘‘(3) ACCESS TO INFORMATION.—The Commis-
sion shall by rule require a common carrier that pro-
vides telephone services to a provider of dial-around
services to make available to the Commission any
records and financial information maintained by
such carrier relating to the arrangements (other
than for the provision of local exchange service) be-
tween such carrier and any provider of dial-around
services.
‘‘(4) EVASIONS.—The rules issued by the Com-
mission under this section shall include provisions to
prohibit unfair or deceptive acts or practices that
evade such rules or undermine the rights provided to
customers under this title, including through the use
of alternative billing or other procedures.
‘‘(5) TREATMENT
OF
RULES.—A rule issued
under this subsection shall be treated as a rule
issued under section 18(a)(1)(B) of the Federal
Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
‘‘(6) EFFECT ON FCC.—Nothing in this section
shall be construed to limit or otherwise alter the au-
thority of the Federal Communications Commission
under section 201(b), section 232, or any other pro-
visions, of the Communications Act of 1934.’’.
(b) CONFORMING AMENDMENTS.—
(1) DEADLINE
FOR
REGULATIONS.—Section
201(c) of such Act (as redesignated by subsection
(a)(1)) is amended by inserting after the first sen-
tence the following: ‘‘The Commission shall prescribe
the rules under subsection (b) within 270 days after
the date of enactment of the Save Consumers Ag-
gravation and Money Act of 2000.’’.
(2) CROSS REFERENCES.—Sections 202, 203,
and 204 of such Act are amended by striking ‘‘sec-
tion 201(a)’’ each place it appears and inserting
‘‘subsection (a) or (b) of section 201’’.
(3) HEADING.—The heading of section 201(a)
is amended by striking ‘‘IN GENERAL’’ and inserting
‘‘PAY-PER-CALL SERVICES REGULATIONS’’.
(4) DEFINITION.—Section 204 of such Act is
amended by adding at the end the following new
paragraph:
‘‘(5) The term ‘dial-around services’ has the
meaning provided in section 232(a) of the Commu-
nications Act of 1934.’’.
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