IB 
Union Calendar No. 290 
111TH CONGRESS 
2D SESSION 
H. R. 3993 
[Report No. 111–507] 
To require accurate and reasonable disclosure of the terms and conditions 
of prepaid telephone calling cards and services. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 3, 2009 
Mr. ENGEL introduced the following bill; which was referred to the Committee 
on Energy and Commerce 
JUNE 15, 2010 
Additional sponsors: Mr. BURTON of Indiana and Ms. TSONGAS 
JUNE 15, 2010 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on November 3, 2009] 
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A BILL 
To require accurate and reasonable disclosure of the terms 
and conditions of prepaid telephone calling cards and 
services. 
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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’’. 
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 C.F.R. 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 al-
lows 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-car-
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rier relationship with a provider of wireless tele-
communications service or wireless hybrid serv-
ice, or that provides access to a wireless tele-
communications service or wireless hybrid serv-
ice account wherein the purchaser has a pre-ex-
isting relationship with the wireless service pro-
vider; 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 Com-
munications Commission’s regulations (47 C.F.R. 
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 
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another 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 sell-
ers 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 defined 
as a service that integrates both commercial mobile 
radio service (as defined by section 20.3 of the Federal 
Communications Commission’s regulations (47 C.F.R. 
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 C.F.R. 
9.3). Such term shall include any voice calling service 
that utilizes a voice over Internet protocol or any suc-
cessor protocol in the transmission of the call. 
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(7) 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 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 political subdivi-
sion 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-
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curately disclose the following information relating to the 
terms and conditions of the prepaid calling card: 
(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 pro-
vider’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 pre-
ferred 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 pre-
paid 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 informa-
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tion may be obtained through such toll-free customer 
service number and website. 
(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 
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language (except as provided in paragraph (2)) 
in a clear and conspicuous manner and location 
on the prepaid calling card, except as the Com-
mission may provide under paragraph (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 con-
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spicuous manner and location all the disclosures 
described in subsection (a), except as the Com-
mission 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 section 
shall be disclosed in that language on such card, 
packaging, advertisement, or promotional material. 
(3) DIFFERENT LOCATION OF CERTAIN INFORMA-
TION
AS
DETERMINED
BY
COMMISSION.—Notwith-
standing the requirements of paragraph (1), the Com-
mission may determine that some of the information 
required to be disclosed pursuant to subsection (a) 
does not need to be disclosed on the prepaid calling 
card, advertising, or other promotional material, if 
the Commission by regulation— 
(A) requires the information to be otherwise 
disclosed and available to consumers; and 
(B) determines that— 
(i) such disclosures provide for easy 
comprehension and comparison by con-
sumers; and 
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(ii) the remaining disclosures on the 
prepaid calling card, advertising, or other 
promotional material, include sufficient in-
formation to allow a consumer to effectively 
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 sub-
section (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 dis-
closed clearly and conspicuously to the consumer before the 
completion of such purchase. 
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(e) NO FALSE, MISLEADING, OR DECEPTIVE DISCLO-
SURES.—No prepaid calling card, packaging, advertise-
ment, or other promotional material containing a disclo-
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 provisions 
of the Federal Trade Commission Act were incorporated 
into and made a part of this Act. Notwithstanding any pro-
vision of the Federal Trade Commission Act or any other 
provision of law and solely for purposes of this Act, 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. 
(c) RULEMAKING AUTHORITY.—Not later than 1 year 
after the date of enactment of this Act, the Commission 
shall, in consultation with the Federal Communications 
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Commission and in accordance with section 553 of title 5, 
United States Code, issue regulations to carry out this Act. 
In promulgating such regulations, the Commission shall— 
(1) take into consideration the need for clear dis-
closures 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 ex-
pertise 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, presen-
tation, and design of disclosures required by this Act and 
may establish and require the use of uniform terms, sym-
bols, or categories to describe or disclose fees and additional 
charges, if the Commission finds that such requirements 
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 expressly 
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provided in this Act, nothing in this Act shall be construed 
to alter or affect the exemption for common carriers pro-
vided 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 Communications Com-
mission. 
(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 Communications 
Commission shall coordinate with the Federal Trade Com-
mission to ensure that any such requirements are not incon-
sistent with the requirements of this Act and the regulations 
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 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 prohibited under this Act, the State utility commis-
sion or other consumer protection agency, if author-
ized by State law, or 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 com-
petent jurisdiction to— 
(A) enjoin that practice; 
(B) enforce compliance with this Act; 
(C) obtain damage, 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 provide 
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 no-
tice. 
(2) EFFECT OF INTERVENTION.—If the Commis-
sion 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 appropriate 
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 protection 
agency authorized by State law from exercising the powers 
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conferred on the attorney general or other appropriate offi-
cial 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 action 
under subsection (a) against any defendant named in the 
complaint in that action for violation of this Act or regula-
tion. 
(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 requirements re-
lating 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 
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(B) may be found. 
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 promulgated 
pursuant to section 4(c); and 
(2) any advertising, promotion, point-of-sale ma-
terial or voice prompt regarding a prepaid calling 
card that is disseminated beginning 180 days after 
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 subdivi-
sion of a State may establish or continue in effect any pro-
vision of law that contains requirements regarding disclo-
sures to be printed on prepaid calling cards or packaging 
unless such requirements are identical to the requirements 
of section 3. 
SEC. 8. STUDIES. 
(a) GAO STUDY.—Beginning 2 years after the date 
on which final regulations are promulgated pursuant to sec-
tion 4(c), the Comptroller General shall conduct a study 
of the effectiveness of this Act and the disclosures required 
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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 consulta-
tion with the Federal Communications Commission, con-
duct a study of the extent to which the business practices 
of the prepaid calling card industry intended to be ad-
dressed by this Act exist in the prepaid wireless industry 
and shall submit a report of such study, including rec-
ommendations, if any, to Congress not later than 3 years 
after the date of enactment of this Act. 
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Union Calendar No. 290 
111TH CONGRESS 
2D SESSION 
H. R. 3993 
[Report No. 111–507] 
A BILL 
To require accurate and reasonable disclosure of 
the terms and conditions of prepaid telephone 
calling cards and services. 
JUNE 15, 2010 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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