I
104TH CONGRESS
1ST SESSION
H. R. 1559
To prevent unfair billing and charging practices for information services
provided over calls to 800 numbers, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 3, 1995
Mr. GORDON introduced the following bill; which was referred to the
Committee on Commerce
A BILL
To prevent unfair billing and charging practices for informa-
tion services provided over calls to 800 numbers, 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 ‘‘Freedom From Toll
Fraud Act’’.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Reforms required by the Telephone Disclo-
sure and Dispute Resolution Act of 1992 have im-
proved the reputation of the pay-per-call industry
SEC. 2. AMENDMENT TO THE COMMUNICATIONS ACT OF
1934.
(a) AMENDMENT.—Section 228(c) of the Commu-
nications Act of 1934 (47 U.S.C. 228(c)) is amended—
(1) by striking subparagraph (C) of paragraph
(7) and inserting the following:
‘‘(C) the calling party being charged for in-
formation conveyed during the call unless—
‘‘(i) the calling party has a written
subscription agreement with the informa-
tion provider that meets the requirements
of paragraph (8); or
‘‘(ii) the calling party is charged in
accordance with paragraph (9); or’’; and
(2) by adding at the end the following new
paragraphs:
‘‘(8) SUBSCRIPTION AGREEMENTS FOR BILLING
FOR
INFORMATION
PROVIDED
VIA
TOLL-FREE
CALLS.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (7)(C)(i), a written subscription agree-
ment shall specify the terms and conditions
under which the information is offered and in-
clude—
‘‘(i) the rate at which charges are as-
sessed for the information;
‘‘(ii) the information provider’s name;
‘‘(iii) the information provider’s busi-
ness address;
‘‘(iv) the information provider’s regu-
lar business telephone number;
‘‘(v) the information provider’s agree-
ment to notify the subscriber at least 30
days in advance of all future changes in
the rates charged for the information;
‘‘(vi) the signature of a legally com-
petent subscriber agreeing to the terms of
the agreement; and
‘‘(vii) the subscriber’s choice of pay-
ment method, which may be by phone bill
or credit or calling card.
‘‘(B) BILLING ARRANGEMENTS.—If a sub-
scriber 
elects, 
pursuant 
to 
subparagraph
(A)(vii), to pay by means of a phone bill—
‘‘(i) the agreement shall clearly ex-
plain that the subscriber will be assessed
for calls made to the information service
from the subscribers phone line;
‘‘(ii) the phone bill shall include, in
prominent type, the following disclaimer:
‘Common carriers may not dis-
connect local or long distance tele-
phone service for failure to pay dis-
puted charges for information serv-
ices.’; and
‘‘(iii) the phone bill shall clearly list
the 800 number dialed.
‘‘(C) USE OF PIN’S TO PREVENT UNAU-
THORIZED USE.—A written agreement does not
meet the requirements of this paragraph unless
it provides the subscriber a personal identifica-
tion number to obtain access to the information
provided, and includes instructions on its use.
‘‘(D) 
EXCEPTIONS.—Notwithstanding
paragraph (7)(C), a written agreement that
meets the requirements of this paragraph is not
required—
‘‘(i) for services provided pursuant to
a tariff that has been approved or per-
mitted to take effect by the Commission or
a State commission; or
‘‘(ii) for any purchase of goods or of
services that are not information services.
‘‘(E) TERMINATION
OF
SERVICE.—On
complaint by any person, a carrier may termi-
nate the provision of service to an information
provider unless the provider supplies evidence of
a written agreement that meets the require-
ments of this section. The remedies provided in
this paragraph are in addition to any other
remedies that are available under title V of this
Act.
‘‘(9) CHARGES BY CREDIT OR CALLING CARD IN
ABSENCE OF AGREEMENT.—For purposes of para-
graph (7)(C)(ii), a calling party is not charged in ac-
cordance with this paragraph unless the calling
party is charged by means of a credit or calling card
and the information service provider includes in re-
sponse to each call an introductory disclosure mes-
sage that—
‘‘(A) clearly states that there is a charge
for the call;
‘‘(B) clearly states the service’s total cost
per minute and any other fees for the service or
for any service to which the caller may be
transferred;
‘‘(C) explains that the charges must be
billed on either a credit or calling card;
‘‘(D) asks the caller for the credit or call-
ing card number;
‘‘(E) clearly states that charges for the call
begin at the end of the introductory message;
and
‘‘(F) clearly states that the caller can hang
up at or before the end of the introductory mes-
sage without incurring any charge whatsoever.
‘‘(10) DEFINITION OF CALLING CARD.—As used
in this subsection, the term ‘calling card’ means an
identifying number or code unique to the individual,
that is issued to the individual by a common carrier
and enables the individual to be charged by means
of a phone bill for charges incurred independent of
where the call originates.’’.
(b) REGULATIONS.—The Federal Communications
Commission shall revise its regulations to comply with the
amendment made by subsection (a) of this section within
180 days after the date of enactment of this Act.
SEC. 3. AMENDMENT TO TITLE II OF TDDRA.
Section 204(1) of the Telephone Disclosure and Dis-
pute Resolution Act is amended to read as follows:
‘‘(1) The term ‘pay-per-call services’ has the
meaning provided in section 228(i)(1) of the Com-
munications Act of 1934, except that the Commis-
sion by rule may, notwithstanding subparagraphs
(B) and (C) of such section, extend such definition
to other similar services providing audio information
or audio entertainment if the Commission deter-
mines that such services are susceptible to the unfair
and deceptive practices that are prohibited by the
rules prescribed pursuant to section 201(a).’’.
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