(2) the necessary protections relating to prepaid 
telephone calling cards must ensure that all adver-
tising is truthful, accurate, and reasonably discloses 
the terms and conditions of prepaid telephone calling 
cards and prepaid telephone calling services. 
SEC. 3. DEFINITIONS. 
As used in this Act, the following definition apply: 
(1) The term ‘‘prepaid telephone calling service 
provider’’ means any entity, corporation, company, 
association, firm, partnership, or person providing 
prepaid telephone calling service to the public using 
its own, or a resold telecommunications network or 
voice over Internet technology. 
(2) The term ‘‘prepaid telephone calling serv-
ice’’ or ‘‘service’’ means any prepaid telecommuni-
cations service that allows consumers to originate 
calls through a local, long distance or toll-free access 
number and authorization code, whether manually or 
electronically dialed. Such term shall not include any 
service that provides access to a wireless tele-
communications service account wherein the pur-
chaser has a pre-existing relationship with the wire-
less service provider or establishes a carrier-cus-
tomer relationship via the purchase of the object. 
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(3) The term ‘‘prepaid telephone calling card’’ 
or ‘‘card’’ means any right of use purchased for a 
sum certain that contains an access number and au-
thorization code that enables a consumer to use a 
prepaid telephone calling service. Such rights of use 
may be embodied on a card or other physical object 
or may be purchased by an electronic or telephonic 
means through which the purchaser obtains access 
numbers and authorization codes that are not phys-
ically located on a card, its packaging, an Internet 
website, or other promotional materials. Such term 
shall not include cards or other rights of use that 
provide access to— 
(A) telecommunications service wherein the 
card or other rights of use and telecommuni-
cations service are provided for free or at no 
additional charge as a promotional item accom-
panying a product or service purchased by a 
consumer; or 
(B) a wireless telecommunications service 
account wherein the purchaser has a pre-exist-
ing relationship with the wireless service pro-
vider or establishes a carrier-customer relation-
ship via the purchase of the object. 
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(4) The term ‘‘prepaid telephone calling card 
distributor’’ means any entity, corporation, com-
pany, association, firm, partnership, or person that 
purchases prepaid telephone calling cards from a 
prepaid telephone calling card provider or 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 any retail merchants or sellers of prepaid 
telephone calling cards exclusively engaged in point- 
of-sale transactions with end-user customers. 
SEC. 4. REQUIRED DISCLOSURES OF PREPAID TELEPHONE 
CALLING CARDS OR SERVICES. 
(a) REQUIRED DISCLOSURE.—Any prepaid telephone 
calling service provider or prepaid telephone calling card 
distributors shall disclose the following information relat-
ing to the terms and conditions of the prepaid telephone 
calling card or service: 
(1) The total value in dollars or the number of 
calling minutes available of the prepaid telephone 
calling card or service at the time of purchase. 
(2) A description of any and all terms and con-
ditions pertaining to, and associated with, the use of 
the prepaid telephone calling service and prepaid 
telephone calling card, including all fees, limitations 
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on the use of minutes available, and surcharges and 
applicable policies relating to refund, recharge, dec-
rement, and expiration. 
(3) The name of the prepaid telephone calling 
service provider. 
(4) The prepaid telephone calling service pro-
vider’s customer service telephone number and hours 
of service. 
(b) LOCATION OF DISCLOSURE AND LANGUAGE RE-
QUIREMENT.— 
(1) CLEAR AND CONSPICUOUS.— 
(A) CARDS.—In the case of a prepaid tele-
phone calling card, the disclosures required 
under subsection (a) shall be printed in plain 
English language in a clear and conspicuous lo-
cation on the prepaid telephone calling card or 
its packaging. If the card is enclosed in opaque 
packaging, such disclosures shall be printed on 
the outside packaging of the card. 
(B) ONLINE SERVICES.—In the case of a 
prepaid telephone calling service that consumers 
access and purchase via the Internet, the disclo-
sures required under subsection (a) shall be dis-
played in plain English language in a clear and 
conspicuous location on the Internet site that 
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the consumer must access prior to purchasing 
such service. 
(C) 
ADVERTISING
AND
OTHER
PRO-
MOTIONAL
MATERIAL.—The disclosures re-
quired under subsection (a) shall also be print-
ed on any advertising for the prepaid telephone 
calling card or service, including on any signs 
for display by retail merchants, any promotional 
emails, any Internet site used to promote such 
card or service, and on any other promotional 
material. 
(2) FOREIGN LANGUAGES.—If a language other 
than English is predominantly used on a prepaid 
telephone calling card, its packaging, or in point of 
sale advertising, or promotional material of a pre-
paid telephone calling card or prepaid telephone call-
ing service, then the disclosures required by this sec-
tion shall be disclosed in that language on such card, 
packaging, advertisement, or promotional material. 
SEC. 5. UNLAWFUL CONDUCT RELATED TO PREPAID TELE-
PHONE CALLING CARDS. 
(a) UNDISCLOSED FEES AND CHARGES.—It shall be 
unlawful for any prepaid telephone calling service provider 
or prepaid telephone calling card distributor to assess any 
fee associated with the prepaid telephone calling card or 
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prepaid telephone calling service, or impose any charge for 
any permitted use of the prepaid telephone calling card 
or prepaid telephone calling service if such fee or charge 
is not disclosed as required under section 4. 
(b) MINUTES AS PROMOTED AND ADVERTISED.— 
(1) SERVICE PROVIDER.—It shall be unlawful 
for any prepaid telephone calling service provider to 
provide fewer minutes than the number of minutes 
promoted or advertised on any prepaid telephone 
calling card, any point of sale material relating to 
such card or the other advertising related to any 
prepaid telephone calling card or service. Any limita-
tion on the period of time for which the displayed, 
promoted, or advertised minutes will be available to 
the customer shall be conspicuously displayed on the 
card, packaging, and promotional material that lists 
the minutes, consistent with section 4(b). 
(2) DISTRIBUTOR.—It shall be unlawful for any 
prepaid telephone calling card distributor to dis-
tribute any prepaid telephone calling card that the 
distributor knows that the prepaid telephone calling 
card provides fewer minutes than the number of 
minutes promoted or advertised on any prepaid tele-
phone calling card, any point of sale material relat-
ing to such card, any voice prompt indicating the 
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number of minutes available, or other advertising re-
lating to any prepaid telephone calling card or serv-
ice. Any limitations on the period of time for which 
the displayed, promoted, or advertised minutes will 
be available to the customer shall be conspicuously 
displayed on the card, packaging, and promotional 
material that lists the minutes, consistent with sec-
tion 4(b). 
(c) 
MINUTES
PROMOTED
AND
ADVERTISED 
THROUGH VOICE PROMPTS.— 
(1) SERVICE PROVIDER.—It shall be unlawful 
for any prepaid telephone calling service provider to 
provide fewer minutes than the number of minutes 
promoted or advertised through any voice prompt 
given to a customer at the time the customer places 
a call to a dialed destination with the prepaid tele-
phone calling card or service. 
(2) DISTRIBUTOR.—It shall be unlawful for any 
prepaid telephone calling card distributor to dis-
tribute prepaid telephone calling cards that it knows 
provide fewer minutes than the number of minutes 
promoted or advertised through any voice prompt 
given to a customer at the time the customer places 
a call to a dialed destination with the prepaid tele-
phone calling card or service. 
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vertised minutes are subject to fees or charges, or by uti-
lizing other disclaimers or limitations. 
SEC. 6. ENFORCEMENT BY THE FEDERAL TRADE COMMIS-
SION. 
(a) UNFAIR AND DECEPTIVE ACT OR PRACTICE.— 
A violation of section 4 or 5 shall be treated as a violation 
of a rule defining an unfair or deceptive act or practice 
prescribed 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 Federal 
Trade Commission shall enforce this Act in the same man-
ner, by the same means, and with the same jurisdiction 
as though all applicable terms and provisions of the Fed-
eral Trade Commission Act were incorporated into and 
made a part of this Act. 
(c) RULEMAKING
AUTHORITY.—The Commission 
may issue regulations to carry out this Act. 
SEC. 7. STATE ENFORCEMENT. 
(a) IN GENERAL.— 
(1) CIVIL ACTIONS.—In any case in which the 
attorney general of a State has reason to believe 
that an interest of the residents of that State has 
been or is threatened or adversely affected by the 
engagement of any person in a practice that is pro-
hibited under this Act, the State, as parens patriae, 
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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— 
(A) to enjoin that practice; 
(B) to enforce compliance with this Act; 
(C) to obtain damage, restitution, or other 
compensation on behalf of residents of the 
State ; or 
(D) to obtain such other relief as the court 
may consider to be appropriate. 
(2) NOTICE TO F.T.C.— 
(A) IN GENERAL.—Before filing an action 
under paragraph (1), the attorney general of a 
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 an attorney general of a State 
under this subsection, if the attorney gen-
eral of a State determines that it is not 
feasible to provide the notice described in 
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that subparagraph before the filing of the 
action. 
(ii) NOTIFICATION.—In an action de-
scribed in clause (i), the attorney general 
of a State shall provide notice and a copy 
of the complaint to the Commission at the 
same time as the attorney general files the 
action. 
(b) INTERVENTION BY F.T.C.— 
(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 that action ; and 
(B) to file a petition for appeal. 
(c) CONSTRUCTION.—For purposes of bringing any 
civil action under subsection (a), nothing in this Act shall 
be construed to prevent an attorney general of a State 
from exercising the powers conferred on the attorney gen-
eral by the laws of that State— 
(1) to conduct investigations; 
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(2) to administer oaths or affirmations; or 
(3) to compel the attendance of witnesses or the 
production of documentary and other evidence. 
(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 
this Act, no State may, during the pendency of that action 
, institute an action under subsection (a) against any de-
fendant named in the complaint in that action for violation 
of that section. 
(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. 
Æ 
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