I 
112TH CONGRESS 
2D SESSION 
H. R. 4319 
To require the Federal Communications Commission to promulgate regula-
tions to provide for accurate disclosures of the terms and conditions 
of prepaid telephone calling cards. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 29, 2012 
Mr. ENGEL introduced the following bill; which was referred to the Committee 
on Energy and Commerce 
A BILL 
To require the Federal Communications Commission to pro-
mulgate regulations to provide for accurate disclosures 
of the terms and conditions of prepaid telephone calling 
cards. 
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’’. 
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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 
Web site (if the provider maintains a Web site) 
where a consumer may obtain the information de-
scribed in subparagraph (A) and a statement that 
such information may be obtained through such toll- 
free customer service number and Web site. 
(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) A description of the applicable policies 
relating to refund, recharge, and any predeter-
mined decrease in value of such card over a pe-
riod of time. 
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(E) Any expiration date applicable to the 
prepaid calling card or the minutes available 
with such calling card. 
(c) MANNER
OF DISCLOSURES.—The regulations 
promulgated under subsection (a) shall include the fol-
lowing requirements with respect to the manner of the dis-
closures required by such regulations: 
(1) CLEAR
AND
CONSPICUOUS.—Such disclo-
sures shall be made in a clear and conspicuous man-
ner and location, as follows: 
(A) CARDS.—Such disclosures shall be 
printed in plain English language (except as 
provided in paragraph (2)) in a clear and con-
spicuous manner and location on the prepaid 
calling card, except as the Commission may 
provide under paragraph (3). If the card is en-
closed in packaging that obscures the disclo-
sures 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, such disclosures shall 
be displayed in plain English language (except 
as provided in paragraph (2)) in a clear and 
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conspicuous manner and location on the Inter-
net Web site that the consumer must access 
prior to purchasing such card. 
(C) 
ADVERTISING
AND
OTHER
PRO-
MOTIONAL MATERIAL.—Except as the Commis-
sion may provide under paragraph (3), such 
disclosures shall be included in a clear and con-
spicuous manner and location in any adver-
tising or other promotional material for a pre-
paid calling card that contains any representa-
tion, expressly or by implication, regarding the 
dollar value, the per minute rate, or the number 
of minutes provided by the card. 
(2) FOREIGN LANGUAGES.—If a language other 
than English is prominently used on a prepaid call-
ing card or its packaging or in any advertising or 
other promotional material for such card, such dis-
closures shall be made in that language in or on 
such card, packaging, advertising, or promotional 
material. 
(3) DIFFERENT LOCATION OF CERTAIN INFOR-
MATION
AS
DETERMINED
BY
COMMISSION.—Not-
withstanding paragraph (1), if the Commission de-
termines that some of the information required to be 
disclosed by the regulations promulgated under sub-
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section (a) does not need to be disclosed in or on the 
prepaid calling card, packaging, advertising, or other 
promotional material, the Commission may exclude 
from such regulations any requirement for the dis-
closure of such information in that manner, if such 
regulations— 
(A) require such information to be other-
wise disclosed and available to consumers; 
(B) provide for easy comprehension and 
comparison by consumers; and 
(C) ensure that the remaining disclosures 
in or on the prepaid calling card, packaging, 
advertising, or other promotional material in-
clude sufficient information to allow a consumer 
to effectively inquire about or seek clarification 
of the services provided by the calling card. 
(d) VOICE PROMPTS.—The regulations promulgated 
under subsection (a) shall, taking into account the applica-
tion of the fees and additional charges required to be dis-
closed under such regulations, require the accuracy of any 
information that— 
(1) is provided to a consumer by a voice prompt 
given to the consumer at the time the consumer uses 
the prepaid calling card; and 
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(2) relates to the remaining value of the calling 
card or the number of minutes available from the 
calling card. 
(e) DISCLOSURES REQUIRED UPON PURCHASE OF 
ADDITIONAL MINUTES.—The regulations promulgated 
under subsection (a) shall require that, if a prepaid calling 
card permits a consumer to add value to the card or pur-
chase additional minutes after the original purchase of the 
prepaid calling card, any changes to the rates, fees, or ad-
ditional charges required to be disclosed under such regu-
lations shall apply only to the additional minutes to be 
purchased and shall be disclosed clearly and conspicuously 
to the consumer before the completion of such purchase. 
(f) NO FALSE, MISLEADING, OR DECEPTIVE DISCLO-
SURES.—The regulations promulgated under subsection 
(a) shall prohibit the inclusion of any false, misleading, 
or deceptive representations relating to the terms and con-
ditions of the prepaid calling card in or on the prepaid 
calling card, packaging, advertising, or other promotional 
material containing a disclosure required by such regula-
tions. 
(g) ADDITIONAL AUTHORITY CONCERNING MANNER 
OF DISCLOSURES.—The regulations promulgated under 
subsection (a) may include requirements concerning the 
order, format, presentation, and design of the required 
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disclosures and may establish and require the use of uni-
form terms, symbols, or categories to describe or disclose 
rates, fees, and additional charges, if the Commission 
finds that such requirements will assist consumers in mak-
ing purchasing decisions and effectuate the purposes of 
this Act. 
(h) FACTORS
FOR CONSIDERATION.—In promul-
gating regulations under subsection (a), the Commission 
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) take into consideration the views of States. 
(i) LIMITATION.—In promulgating regulations under 
subsection (a), the Commission may not specify the rates, 
fees, or additional charges or the terms and conditions of 
prepaid calling cards. 
SEC. 3. IMPLEMENTATION AND ENFORCEMENT BY FCC. 
(a) AUTHORITY OF THE COMMISSION.—The Commis-
sion shall implement and enforce this Act in the same 
manner, by the same means, and with the same jurisdic-
tion, powers, and duties as though all applicable terms and 
provisions of the Communications Act of 1934 (47 U.S.C. 
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151 et seq.) were incorporated into and made a part of 
this Act. 
(b) CONSULTATION BETWEEN FCC AND FTC.— 
(1) IN GENERAL.—In promulgating regulations 
under section 2(a) and in enforcing such regulations, 
the Commission shall consult with the Federal Trade 
Commission. 
(2) FTC REGULATIONS ON PREPAID CALLING 
CARD DISCLOSURES.—If the Federal Trade Commis-
sion initiates a rulemaking proceeding to establish 
requirements relating to the disclosure of terms and 
conditions of prepaid calling cards, the Federal 
Trade Commission shall consult with the Commis-
sion to ensure that any such requirements and the 
enforcement of any such requirements by the Fed-
eral Trade Commission are not inconsistent with the 
regulations promulgated under section 2(a) and the 
enforcement of such regulations by the Commission. 
SEC. 4. ENFORCEMENT BY STATES. 
(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 
such State has been or is threatened or adversely af-
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fected by the engagement of any person in a practice 
that is prohibited by a regulation promulgated under 
section 2(a), 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 such State 
in an appropriate district court of the United States 
or any other court of competent jurisdiction to— 
(A) enjoin such practice; 
(B) enforce compliance with such regula-
tion; 
(C) obtain damages, restitution, or other 
compensation on behalf of residents of the 
State; or 
(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 this subsection, 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.— 
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(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 such 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 
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 such action; 
(B) to remove the action to the appro-
priate district court of the United States; and 
(C) to file a petition for appeal. 
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(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 such 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 
a regulation promulgated under section 2(a), no State 
may, during the pendency of such action, institute an ac-
tion under subsection (a) against any defendant named 
in the complaint in the action instituted by or on behalf 
of the Commission for any violation of such regulation al-
leged in such complaint. 
SEC. 5. EFFECT ON OTHER LAW. 
(a) FCC AUTHORITY.—Nothing in this Act shall be 
construed to— 
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(1) limit the authority of the Commission, 
under any other provision of law, with respect to dis-
closure of the terms and conditions of prepaid call-
ing cards; or 
(2) affect any proceeding initiated by the Com-
mission prior to the date of the enactment of this 
Act with respect to disclosure of the terms and con-
ditions of prepaid calling cards. 
(b) PREEMPTION OF STATE LAW.—After the date on 
which final regulations are promulgated under section 
2(a), no State or political subdivision of a State may es-
tablish or continue in effect any provision of law that con-
tains requirements regarding disclosures to be printed on 
prepaid calling cards or the packaging of prepaid calling 
cards or included in advertising or other promotional ma-
terial with respect to prepaid calling cards, unless such 
requirements are identical to the requirements of such reg-
ulations. 
SEC. 6. STUDIES. 
(a) GAO STUDY.—Beginning 2 years after the date 
on which final regulations are promulgated under section 
2(a), the Comptroller General of the United States shall 
conduct a study of the effectiveness of this Act and the 
disclosures required under this Act and shall submit a re-
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port on such study to Congress not later than 3 years after 
the date of the enactment of this Act. 
(b) FCC STUDY.—The Commission shall, in con-
sultation with the Federal Trade Commission, conduct a 
study of the extent to which the business practices of the 
prepaid calling card industry intended to be addressed by 
this Act exist in the prepaid commercial mobile service in-
dustry and shall submit a report on such study, including 
recommendations, if any, to Congress not later than 3 
years after the date of the enactment of this Act. 
SEC. 7. DEFINITIONS. 
(a) INCORPORATION OF DEFINITIONS FROM COMMU-
NICATIONS ACT OF 1934.—In this Act, a term that is de-
fined in section 3 of the Communications Act of 1934 (47 
U.S.C. 153) shall have the meaning given such term in 
such section. 
(b) ADDITIONAL DEFINITIONS.—The following addi-
tional definitions apply in this Act: 
(1) ADDITIONAL
CHARGE.—The term ‘‘addi-
tional charge’’ means any charge assessed by a pre-
paid calling card provider or prepaid calling card 
distributor for the use of a prepaid calling card, 
other than a fee or rate. 
(2) COMMERCIAL MOBILE SERVICE.—The term 
‘‘commercial mobile service’’ has the meaning given 
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such term in section 332 of the Communications Act 
of 1934 (47 U.S.C. 332). 
(3) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Communications Commission. 
(4) FEES.—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 Commission 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 
Commission or under the laws and regulations 
of any State or political subdivision of a State. 
(5) INTERNATIONAL
PREFERRED
DESTINA-
TION.—The term ‘‘international preferred destina-
tion’’ means one or more specific international des-
tinations named on a prepaid calling card, on the 
packaging material accompanying a prepaid calling 
card, or in the advertising or other promotional ma-
terial with respect to a prepaid calling card. 
(6) PREPAID CALLING CARD.—The term ‘‘pre-
paid calling card’’ has the meaning given such term 
in section 64.5000 of the Commission’s regulations 
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(47 C.F.R. 64.5000). Such term shall also include 
calling cards that use interconnected 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 commer-
cial mobile service or wireless hybrid service, or 
that provides access to a commercial mobile 
service or wireless hybrid service account where-
in the purchaser has a pre-existing relationship 
with the provider; or 
(C) payphone service (as defined in section 
276 of the Communications Act of 1934 (47 
U.S.C. 276)). 
(7) PREPAID
CALLING
CARD
DISTRIBUTOR.— 
The term ‘‘prepaid calling card distributor’’ means 
any entity or person that purchases prepaid calling 
cards from a prepaid calling card provider or an-
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other 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. Such term shall not include— 
(A) any retail seller whose only activity 
with respect to the sale of prepaid calling cards 
is point-of-sale transactions with end-user cus-
tomers; or 
(B) any person whose only activity with re-
spect to the sale of prepaid calling cards is the 
transport or delivery of such cards. 
(8) PREPAID CALLING CARD PROVIDER.—The 
term ‘‘prepaid calling card provider’’ has the mean-
ing given such term in section 64.5000 of the Com-
mission’s regulations (47 C.F.R. 64.5000). Such 
term shall also include— 
(A) a provider of a prepaid calling card 
that uses interconnected VoIP service or a suc-
cessor 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. 
(9) WIRELESS
HYBRID
SERVICE.—The term 
‘‘wireless hybrid service’’ means a service that inte-
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grates both commercial mobile service and inter-
connected VoIP service. 
SEC. 8. DATE OF APPLICATION. 
This Act shall apply with respect to— 
(1) any prepaid calling card issued or placed 
into the stream of commerce beginning 180 days 
after the date on which final regulations are promul-
gated under section 2(a); and 
(2) any advertising, other promotional material, 
or voice prompt regarding a prepaid calling card 
that is disseminated beginning 180 days after the 
date on which final regulations are promulgated 
under section 2(a). 
Æ 
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