I
105TH CONGRESS
1ST SESSION
H. R. 3050
To establish procedures and remedies for the prevention of fraudulent and
deceptive practices in the solicitation of telephone service subscribers,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 13, 1997
Mr. DINGELL introduced the following bill; which was referred to the
Committee on Commerce
A BILL
To establish procedures and remedies for the prevention of
fraudulent and deceptive practices in the solicitation of
telephone service subscribers, and for other purposes.
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 ‘‘Slamming Prevention
and Consumer Protection Act of 1997’’.
TITLE 
I—IMPROVED 
COMMU-
NICATIONS 
ACT 
REMEDIES
FOR SLAMMING
SEC. 101. COMPLETION AND ENFORCEMENT OF FCC RULES.
Section 258 of the Communications Act of 1984 (47
U.S.C. 258) is amended by adding at the end the follow-
ing:
‘‘(c) SUBSCRIBER
CHANGES.—The Commission’s
regulations under this section shall require any carrier
that submits or executes a change in a subscriber’s selec-
tion of a provider of telephone exchange service or tele-
phone toll service in violation of the verification procedures
prescribed by the Commission shall refund to the sub-
scriber (or discharge the subscriber from liability for) any
charges imposed for such service by such carrier during
the 3-month period after the change in the subscriber’s
selection is effected.
‘‘(d) NEGATIVE OPTION SELECTION PROHIBITED.—
The Commission’s regulations under this section shall pro-
hibit any change in selection, or any verification of a
change in selection, without the affirmative request of the
subscriber. A subscriber’s failure to refuse a change in se-
lection, or failure to refuse to verify a change in selection,
shall not be deemed to be an affirmative request.
‘‘(e) COMPLETION OF RULEMAKING.—The Commis-
sion shall complete all actions necessary, including any re-
consideration, to prescribe rules to implement and enforce
this section within two years after the date of enactment
of the Telecommunications Act of 1996.
‘‘(f) PRIVATE RIGHT OF ACTION.—
‘‘(1) IN GENERAL.—A subscriber whose selec-
tion of a provider of telephone exchange service or
telephone toll service is changed in violation of the
procedures prescribed under subsection (a) may,
within one year after the change, if otherwise per-
mitted by the laws or rules of court of a State, bring
in an appropriate court of that State an action—
‘‘(A) for an order to revoke the change;
‘‘(B) for an award of damages in an
amount equal to the greater of—
‘‘(i) the actual monetary loss resulting
from the change; or
‘‘(ii) an amount not to exceed $500;
or
‘‘(C) for relief under both subparagraphs
(A) and (B).
In any such action in which the plaintiff substan-
tially prevails the court may assess reasonable costs,
including attorneys’ fees, against the defendant.
‘‘(2) INCREASED
AWARD.—If the court finds
that the defendant executed the change in willful
and knowing violation of the procedures prescribed
under subsection (a), the court may, in its discre-
tion, increase the amount of the award under para-
graph (1) to an amount equal to not more than
three times the maximum amount awardable under
subparagraph (B) of that paragraph.
‘‘(g) NO PREEMPTION OF STATE LAW.—Nothing in
this section shall preempt the availability of relief under
State law for unauthorized changes of providers of intra-
state telephone exchange service or telephone toll serv-
ice.’’.
TITLE II—REGULATION OF UN-
FAIR AND DECEPTIVE ACTS
AND PRACTICES IN CONNEC-
TION WITH SLAMMING
SEC. 201. FEDERAL TRADE COMMISSION REGULATIONS.
(a) IN GENERAL.—
(1) REGULATIONS
REQUIRED.—The Commis-
sion shall prescribe rules in accordance with this
subsection to prohibit unfair and deceptive acts and
practices in any advertisement for or solicitation of
any change in a subscriber’s selection of a provider
of telephone exchange service or telephone toll serv-
ice. Such rules shall require that the person offering
or soliciting any change in the subscriber’s selection
of the provider of a telephone exchange service or
telephone toll service—
(A) clearly and conspicuously disclose—
(i) that the offer or solicitation seeks
authority to change the subscriber’s selec-
tion of the provider of a telephone ex-
change service or telephone toll service;
and
(ii) the cost of the use of telephone
exchange service or telephone toll service,
including the total cost or the cost per
minute and any other fees for that service,
including any cost imposed for changing
the subscriber’s selection of service provid-
ers;
(B) not submit or execute a change in a
subscriber’s selection of the provider of any
telephone exchange service or telephone toll
service in violation of the verification proce-
dures prescribed by the Federal Communica-
tions Commission pursuant to section 258 of
the Communications Act of 1934;
(C) in the case of an advertisement or so-
licitation which offers a prize or award or a
service or product at no cost or for a reduced
cost, clearly and conspicuously disclose the odds
of being able to receive such prize, award, serv-
ice, or product at no cost or reduced cost, or,
if such odds are not calculable in advance, dis-
close the factors determining such odds; and
(D) comply with such additional standards
as the Commission may prescribe to prevent
unfair or abusive practices.
(2) ACCESS TO INFORMATION.—The Commis-
sion shall by rule require a common carrier that uses
any person other than an employee of such carrier
to solicit changes in the provider of any telephone
exchange service or telephone toll service to make
available to the Commission any contracts, records,
and financial information maintained by such carrier
relating to the use of such person to make such so-
licitations.
(3) 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
telephone exchange service or telephone toll service
subscribers under this title.
(4) TREATMENT
OF
RULES.—A rule issued
under this subsection shall be treated as a rule is-
sued under section 18(a)(1)(B) of the Federal Trade
Commission Act (15 U.S.C. 57a(a)(1)(B)).
(b) RULEMAKING.—The Commission shall prescribe
the rules under subsection (a) within 270 days after the
date of enactment of this Act. Such rules shall be pre-
scribed in accordance with section 553 of title 5, United
States Code.
(c) ENFORCEMENT.—Any violation of any rule pre-
scribed under subsection (a) shall be treated as a violation
of a rule respecting unfair or deceptive acts or practices
under section 5 of the Federal Trade Commission Act (15
U.S.C. 45). Notwithstanding section 5(a)(2) of such Act
(15 U.S.C. 45(a)(2)), communications common carriers
shall be subject to the jurisdiction of the Commission for
purposes of this title.
SEC. 202. ACTIONS BY STATES.
(a) IN GENERAL.—Whenever an attorney general of
any State has reason to believe that the interests of the
residents of that State have been or are being threatened
or adversely affected because any person has engaged or
is engaging in a pattern or practice which violates any rule
of the Commission under section 201(a), the State may
bring a civil action on behalf of its residents in an appro-
priate district court of the United States to enjoin such
pattern or practice, to enforce compliance with such rule
of the Commission, to obtain damages on behalf of their
residents, or to obtain such further and other relief as the
court may deem appropriate.
(b) NOTICE.—The State shall serve prior written no-
tice of any civil action under subsection (a) upon the Com-
mission and provide the Commission with a copy of its
complaint, except that if it is not feasible for the State
to provide such prior notice, the State shall serve such
notice immediately upon instituting such action. Upon re-
ceiving a notice respecting a civil action, the Commission
shall have the right (1) to intervene in such action, (2)
upon so intervening, to be heard on all matters arising
therein, and (3) to file petitions for appeal.
(c) VENUE.—Any civil action brought under this sec-
tion in a district court of the United States may be
brought in the district wherein the defendant is found or
is an inhabitant or transacts business or wherein the viola-
tion occurred or is occurring, and process in such cases
may be served in any district in which the defendant is
an inhabitant or wherever the defendant may be found.
(d) INVESTIGATORY
POWERS.—For purposes of
bringing any civil action under this section, nothing in this
Act shall prevent the attorney general from exercising the
powers conferred on the attorney general by the laws of
such State to conduct investigations or to administer oaths
or affirmations or to compel the attendance of witnesses
or the production of documentary and other evidence.
(e) EFFECT
ON STATE COURT PROCEEDINGS.—
Nothing contained in this section shall prohibit an author-
ized State official from proceeding in State court on the
basis of an alleged violation of any general civil or criminal
antifraud statute of such State.
(f) LIMITATION.—Whenever the Commission has in-
stituted a civil action for violation of any rule or regulation
under this Act, no State may, during the pendency of such
action instituted by the Commission, subsequently insti-
tute a civil action against any defendant named in the
Commission’s complaint for violation of any rule as alleged
in the Commission’s complaint.
(g) ACTIONS BY OTHER STATE OFFICIALS.—
(1) Nothing contained in this section shall pro-
hibit an authorized State official from proceeding in
State court on the basis of an alleged violation of
any general civil or criminal statute of such State.
(2) In addition to actions brought by an attor-
ney general of a State under subsection (a), such an
action may be brought by officers of such State who
are authorized by the State to bring actions in such
State for protection of consumers and who are des-
ignated by the Commission to bring an action under
subsection (a) against persons that the Commission
has determined have or are engaged in a pattern or
practice which violates a rule of the Commission
under section 201(a).
SEC. 203. ADMINISTRATION AND APPLICABILITY OF TITLE.
(a) IN GENERAL.—Except as otherwise provided in
section 202, this title shall be enforced by the Commission
under the Federal Trade Commission Act (15 U.S.C. 41
et seq.). Consequently, no activity which is outside the ju-
risdiction of that Act shall be affected by this Act, except
for purposes of this title.
(b) ACTIONS BY THE COMMISSION.—The Commis-
sion shall prevent any person from violating a rule of the
Commission under section 201 in the same manner, by
the same means, and with the same jurisdiction, powers,
and duties as though all applicable terms and provisions
of the Federal Trade Commission Act (15 U.S.C. 41 et
seq.) were incorporated into and made a part of this title.
Any person who violates such rule shall be subject to the
penalties and entitled to the privileges and immunities
provided in the Federal Trade Commission Act in the
same manner, by the same means, and with the same ju-
risdiction, power, and duties as though all applicable terms
and provisions of the Federal Trade Commission Act were
incorporated into and made a part of this title.
SEC. 204. DEFINITIONS.
For purposes of this title:
(1) The terms ‘‘telephone exchange service’’ and
‘‘telephone toll service’’ have the meaning provided
in section 3 of the Communications Act of 1934.
(2) The term ‘‘attorney general’’ means the
chief legal officer of a State.
(3) The term ‘‘State’’ means any State of the
United States, the District of Columbia, Puerto
Rico, the Northern Mariana Islands, and any terri-
tory or possession of the United States.
(4) The term ‘‘Commission’’ means the Federal
Trade Commission.
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