To require accurate and reasonable disclosure of the terms and conditions of prepaid telephone calling cards and services.

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 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 
                telecommunications service or wireless hybrid service 
                account wherein the purchaser has a pre-existing 
                relationship with the wireless service provider; or
                    (C) payphone service, as that term is defined 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 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 specified 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 distributors of such cards or to one or 
        more retail sellers 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 Communications 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 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--
                    (A) required by Federal law or regulation or order 
                of the Federal Communications Commission 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 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 prepaid calling card, other 
        than a fee or rate.
            (9) The term ``international preferred destination'' means 
        one or more specific international destinations 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 disclose clearly and 
conspicuously the following information relating to the terms and 
conditions of the prepaid calling card:
            (1) The name of the prepaid calling card provider and such 
        provider's customer service telephone number and hours of 
        service.
            (2)(A) The number of domestic interstate minutes 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 individual 
        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 information may be obtained through such toll-free 
        customer service number and website.
            (4) The following terms and conditions pertaining 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 minutes 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 Requirement.--
            (1) Clear and conspicuous.--
                    (A) Cards.--The disclosures required under 
                subsection (a) shall be printed in plain English 
                language (except as provided in paragraph (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 required under subsection (a) 
                shall be displayed in plain English language (except as 
                provided in paragraph (2)) in a clear and conspicuous 
                manner and location on the Internet website that the 
                consumer must access prior to purchasing such card.
                    (C) Advertising and other promotional material.--
                Any advertising 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 disclosures described in subsection 
                (a).
            (2) Foreign languages.--If a language other than English is 
        prominently used on a prepaid calling card, its packaging, or 
        in point-of-sale advertising, 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.
    (c) Minutes Announced, Promoted, or Advertised Through Voice 
Prompts.--Any information provided to a consumer by any voice prompt 
given to the consumer 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 required 
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 COMMISSION.

    (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 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 Commission 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 
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 Commission shall, in consultation with 
the Federal Communications 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 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 consideration 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 expressly provided in this Act, nothing in this 
Act shall be construed to alter or affect the exemption for common 
carriers 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 Communications 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 commission, 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 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 United States of appropriate 
        jurisdiction, or any other court of competent 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 
                        action.
                    (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 provide 
                        the notice described in that subparagraph 
                        before the filing of the action.
                            (ii) Notification.--In an action described 
                        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 notice.
            (2) Effect of intervention.--If the Commission 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 conferred on the attorney general or other appropriate 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 instituted 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 regulation.
    (e) Venue; Service of Process.--
            (1) Venue.--Any action brought under subsection (a) may be 
        brought in the district court of the United States that meets 
        applicable requirements 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.
    (f) Limitation.--No prepaid calling card distributor who is a 
retail merchant or seller of prepaid calling cards, who, with respect 
to such cards, is exclusively engaged in point-of-sale transactions may 
be liable for damages in an action authorized under this section unless 
such distributor acted with actual knowledge that the act or practice 
giving rise to such action is unfair or deceptive and is unlawful under 
this Act.

SEC. 6. APPLICATION.

    This Act shall apply to--
            (1) any prepaid calling card issued or placed into the 
        stream of commerce beginning 90 days after the date on which 
        final regulations are promulgated 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 90 days after the date on which final 
        regulations are promulgated pursuant to section 4(c).
If the Commission determines that it is not feasible for prepaid 
calling card providers or distributors to comply with the requirements 
of this Act with respect to prepaid calling cards issued or placed into 
the stream of commerce after such 90-day period, the Commission may 
extend such period by not more than an additional 90 days.

SEC. 7. EFFECT ON STATE LAWS.

    After the date on which final regulations are promulgated pursuant 
to section 4(c), no State or political subdivision 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 requirements are identical to the requirements of section 3.

SEC. 8. G.A.O. 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.

            Passed the House of Representatives September 25, 2008.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.

Summary: Calling Card Consumer Protection Act - (Sec. 3) Requires providers or distributors of prepaid calling cards, including cards that use interconnected Voice over Internet Protocol (VoIP) or a successor protocol, to clearly and conspicuously disclose information about: (1) the provider's name, customer service number, and hours of service; (2) the card's number of minutes or dollar value; (3) per minute rates or a toll-free number to obtain rates; (4) fees and charges; (5) time period limits, any predetermined decrease in value over a period of time, and expiration dates; and (6) refund and recharge policies.

(Sec. 4) Treats a violation as an unfair or deceptive act or practice under the Federal Trade Commission Act and requires the Federal Trade Commission (FTC) to enforce this Act. Gives the FTC, for this Act, jurisdiction over common carriers subject to the Communications Act of 1934, notwithstanding any other provision of law.

(Sec. 5) Allows civil enforcement actions to be brought, except when an FTC action is pending, by a state attorney general, a state utilities commission, or a consumer protection agency for an injunction, to enforce this Act, to obtain damages, restitution, or other compensation on behalf of state residents, or for other relief. Allows actions under state laws.

Shields a distributor who is a retail seller of prepaid cards and who, with respect to such cards, is exclusively engaged in point-of-sale transactions from liability for damages unless the distributor acted with actual knowledge that the act or practice giving rise to the action is unfair or deceptive and is unlawful under this Act.

(Sec. 7) Prohibits a state, after final regulations are promulgated under this Act, from establishing or continuing in effect any provision of law that prescribes prepaid card disclosure requirements unless those requirements are identical to those in this Act.

(Sec. 8) Requires the Comptroller General to report to Congress on the effectiveness of this Act and its required disclosures.