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. 
(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) Applicable policies relating to refund, 
recharge, and any predetermined decrease in 
value of such card over a period 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 
and location on the prepaid calling card. 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 for a 
prepaid calling card that contains any represen-
tation, 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 disclosures described in sub-
section (a). 
(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. 
(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 to the consumer before the completion of such 
purchase. 
SEC. 4. ENFORCEMENT BY THE FEDERAL TRADE COMMIS-
SION. 
(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 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 180 
days 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 
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 shall 
not issue regulations that otherwise affect 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-
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. 
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 
patriae, may bring a civil action on behalf of the 
residents of that State in a district court of the
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 prescribes disclosure requirements 
with respect to prepaid calling cards unless such require-
ments are identical to the requirements of section 3. 
SEC. 8. G.A.O. STUDY. 
Beginning 2 years after the date on which final regu-
lations are promulgated pursuant to section 4(c), the 
Comptroller General shall conduct a study of the effective-
ness 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. 
Passed the House of Representatives September 25, 
2008. 
Attest: 
Clerk.
110TH CONGRESS 
2D SESSION 
H. R. 3402 
AN ACT 
To require accurate and reasonable disclosure of 
the terms and conditions of prepaid telephone 
calling cards and services.