IIB 
111TH CONGRESS 
2D SESSION 
H. R. 3993 
IN THE SENATE OF THE UNITED STATES 
JUNE 24, 2010 
Received; read twice and referred to the Committee on Commerce, Science, 
and Transportation 
AN ACT 
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, 
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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. 
(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 CFR 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 
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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)). 
(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 CFR 
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 
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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. 
(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 CFR 20.3)) and VoIP service. 
(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 CFR 
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— 
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(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-
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 the following information relating to the 
terms and conditions of the prepaid calling card: 
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(1) The name of the prepaid calling card pro-
vider and such provider’s customer service telephone 
number and hours of service, except that the hours 
of service may not be required to be disclosed if the 
provider’s customer service is provided and available 
24 hours a day, 7 days per week. 
(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. 
(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. 
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(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. 
(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 
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and location on the prepaid calling card, except 
as the Commission may provide under para-
graph (3). 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. 
(C) 
ADVERTISING
AND
OTHER
PRO-
MOTIONAL
MATERIAL.—Any 
advertising 
or 
other promotional material for a prepaid calling 
card that contains any representation, 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 disclo-
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sures described in subsection (a), except as the 
Commission may provide under paragraph (3). 
(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. 
(3) DIFFERENT LOCATION OF CERTAIN INFOR-
MATION
AS
DETERMINED
BY
COMMISSION.—Not-
withstanding the requirements of paragraph (1), the 
Commission may determine that some of the infor-
mation required to be disclosed pursuant to sub-
section (a) does not need to be disclosed on the pre-
paid calling card, advertising, or other promotional 
material, if the Commission by regulation— 
(A) requires the information to be other-
wise disclosed and available to consumers; and 
(B) determines that— 
(i) such disclosures provide for easy 
comprehension and comparison by con-
sumers; and 
(ii) the remaining disclosures on the 
prepaid calling card, advertising, or other 
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promotional material, include sufficient in-
formation to allow a consumer to effec-
tively inquire about or seek clarification of 
the services provided by the calling card. 
(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). 
(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 clearly and conspicuously to the consumer before 
the completion of such purchase. 
(e) NO FALSE, MISLEADING, OR DECEPTIVE DISCLO-
SURES.—No prepaid calling card, packaging, advertise-
ment, or other promotional material containing a disclo-
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sure required pursuant to this section shall contain any 
false, misleading, or deceptive representations relating to 
the terms and conditions of the prepaid calling card. 
SEC. 4. FEDERAL TRADE COMMISSION AUTHORITY. 
(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, common carriers subject to the 
Communications Act of 1934 (47 U.S.C. 151 et seq.) and 
any amendment thereto shall be subject to the jurisdiction 
of the Commission for purposes of this Act. 
(c) RULEMAKING AUTHORITY.—Not later than 1 
year 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 
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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 may 
prescribe requirements concerning the order, format, pres-
entation, and design of disclosures required by this Act 
and may establish and require the use of uniform terms, 
symbols, or categories to describe or disclose fees and ad-
ditional charges, if the Commission finds that such re-
quirements will assist consumers in making purchasing 
decisions and effectuate the purposes of this Act. The 
Commission shall not issue regulations that otherwise 
specify 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-
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pressly provided in this Act, nothing in this Act shall be 
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. 
(e) COORDINATION.—If the Federal Communications 
Commission initiates a rulemaking proceeding to establish 
requirements relating to the disclosure of terms and condi-
tions of prepaid calling cards, the Federal Communica-
tions Commission shall coordinate with the Federal Trade 
Commission to ensure that any such requirements are not 
inconsistent with the requirements of this Act and the reg-
ulations issued under subsection (c). 
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 
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patriae, may bring a civil action on behalf of the 
residents of that State in an appropriate district 
court of the United States or any other court of 
competent jurisdiction to— 
(A) enjoin that practice; 
(B) enforce compliance with this Act; 
(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 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 
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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 
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 
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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 
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. 
SEC. 6. APPLICATION. 
This Act shall apply 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 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 180 days after 
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the date on which final regulations are promulgated 
pursuant to section 4(c). 
SEC. 7. EFFECT ON STATE LAWS. 
After the date on which final regulations are promul-
gated pursuant to section 4(c), no State or political sub-
division of a State may establish or continue in effect any 
provision of law that contains requirements regarding dis-
closures to be printed on prepaid calling cards or pack-
aging unless such requirements are identical to the re-
quirements of section 3. 
SEC. 8. STUDIES. 
(a) GAO STUDY.—Beginning 2 years after the date 
on which final regulations are promulgated pursuant to 
section 4(c), the Comptroller General shall conduct a 
study of the effectiveness 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. 
(b) FTC STUDY.—The Commission shall, in con-
sultation with the Federal Communications Commission, 
conduct a study of the extent to which the business prac-
tices of the prepaid calling card industry intended to be 
addressed by this Act exist in the prepaid wireless industry 
and shall submit a report of such study, including rec-
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ommendations, if any, to Congress not later than 3 years 
after the date of enactment of this Act. 
Passed the House of Representatives June 23, 2010. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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