Telephone Disclosure and Dispute Resolution Act
PL 102-556 (H.R.6191), enacted 10/28/1992

PUBLIC LAW 102-556—OCT. 28, 1992 
106 STAT. 4181 
Public Law 102-556 
102d Congress 
An Act 
To protect the public interest and the future development of pay-per-call technology 
by providing for the regulation and oversight of the applications and growth 
of the pay-per-call industry, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of 
America in Congress assembled, 
SECTION 1. SHORT TITLE, FINDINGS. 
(a) SHORT TITLE.—This Act may be cited as the Telephone 
Disclosure and Dispute Resolution Act". 
0)) FINDINGS.—^The Congress finds the following: 
(1) The use of pay-per-call services, most commonly through 
the use of 900 telephone numbers, has grown exponentially 
in the past few years into a national, bUlion-doUar industry 
as a result of recent technological innovations. Such services 
are convenient to consumers, cost-effective to vendors, and 
profitable to communications common carriers. 
(2) Many pay-per-call businesses provide valuable informa-
tion, increase consumer choices, and stimulate innovative and 
responsive services that benefit the public. 
(3) The interstate nature of the pay-per-call industry means 
that its activities are beyond the readi of individual States 
and therefore requires Federal regulatory treatment to protect 
the public interest. 
(4) The lack of nationally uniform regulatory guidelines 
has led to confusion for callers, subscribers, industry partici-
pants, and regulatory agencies as to the rights of callers and 
the oversight responsibilities of regulatory authorities, and has 
allowed some pav-per-call businesses to engage in practices 
that abuse the rights of consumers. 
(5) Some interstate pay-per-call businesses have engaged 
in practices which are misleading to the consumer, harmful 
to the public interest, or contraiy to accepted standards of 
business practices and thus cause harm to the many reputable 
businesses that are serving the public. 
(6) Because the consumer most often incurs a financial 
obligation as soon as a pay-per-call transaction is completed, 
the accuracy and descriptiveness of vendor advertisements 
become crucial in avoiding consumer abuse. The obligation 
for accuracy should include price-per-call and duration-of-call 
information, odds disclosure for lotteries, games, and sweep-
stakes, and obligations for obtaining parental consent firom 
callers under 18. 
(7) The continued growth of the legitimate, pay-per-call 
industry is dependent upon consumer confidence that unfair 
and deceptive behavior will be effectively curtailed and that 
consumers will have adequate rights of redress. 
(8) Vendors of telephone-billed goods and services must 
also feel confident in their righto and obligations for resolving 
Oct. 28. 1992 
[H.R. 6191] 
Telephone 
Disclosure and 
Dispute 
Resolution Act. 
15 use 5701. 
106 STAT. 4182 
PUBLIC LAW 102-556—OCT. 28, 1992 
billing disputes if they are to use this new marketplace for 
the s£de of products of more than nominal value. 
TITLE I—CARRIER OBLIGATIONS AND 
CONSUMER 
RIGHTS 
CONCERNING 
PAY-PER-CALL TRANSACTIONS 
SEC. 101. AMENDMENT TO COMMUNICATIONS ACT OF 1934. 
Title II of the Communications Act of 1934 is amended by 
adding at the end thereof the following new section: 
47 use 228. 
<«EC. 228. REGULATION OF CARRIER OFFERING OF PAY-PEIU^ALL 
SERVICES. 
"(a) PURPOSE.—It is the purpose of this section— 
"(1) to put into effect a system of national regulation and 
review that will oversee interstate pay-per-call services; and 
''(2) to recognize the Commission's authority to prescribe 
regulations and enforcement procedures and conduct oversight 
to afford reasonable protection to consumers of pay-per-^1 
services and to assure that violations of Federal law do not 
occur. 
"(b) GENERAL AUTHORITY FOR REGULATIONS.—The Commission 
by regulation shall, within 270 days after the date of enactment 
of this section, establish a system for oversight and regulation 
of pay-per-call services in order to provide for the protection of 
consumers in accordance with this Act and other applicable Federal 
statutes and regulations. The Commission's final nues shall— 
"(1) include measures that provide a consumer of pay-
per-call services with adequate and clear descriptions of the 
rights of the caller; 
"(2) define the obligations of common carriers with respect 
to the provision of pay-per-call services; 
"(3) include requirements on such carriers to protect 
against abusive practices by providers of pay-per-call services; 
"(4) identify procedures by which common carriers and 
providers of pay-per-call services may take affirmative steps 
to protect against nonpayment of legitimate charges; and 
"(5) require that any service described in subparagraphs 
(A) and (B) of subsection (iXD be offered only through the 
use of certain telephone number prefixes and area codes. 
"(c) COMMON CARRIER OBUGATIONS.—Within 270 days after 
the date of enactment of this section, the Commission shall, by 
regulation, establish the following requirements for conmion car-
riers: 
"(1) CONTRACTUAL OBUGATIONS TO COMPLY.—Any common 
carrier assigning to a provider of pay-per-call services a tele-
phone number with a prefix or area code designated by the 
Commission in accordance with subsection (bX5) shall require 
by contract or tariff that such provider comply with the provi-
sions of titles II and III of the Telephone Disclosure and Dispute 
Resolution Act and the regulations prescribed by the Federal 
Trade Commission pursuant to those titles. 
"(2) INFORMATION AVAILABILITY.—A common carrier that 
by tariff or contract assigns a telephone nimiber with a prefix 
or area code designated by the Commission in accordance with 
PUBLIC LAW 102-556—OCT. 28, 1992 
106 STAT. 4183 
subsection (bX5) to a provider of a pay-per-call service shall 
make readily available on request to Federal and State agencies 
and other interested persons— 
"(A) a list of the telephone numbers for each of the 
pay-per-call services it carries; 
(B) a short description of each such service; 
"(C) a statement of the total cost or the cost per minute 
and any other fees for each such service; 
"(D) a statement of the pay-per-call service's name, 
business address, and business telephone; and 
"(E) such other information as the Commission consid-
ers necessary for the enforcement of this section and other 
applicable Federal statutes and regulations. 
"(2) COMPLIANCE PROCEDURES.—A common carrier that by 
contract or tariff assigns a telephone number with a prefix 
or area code designated by the Commission in accordance with 
subsection (bX5) to a provider of pay-per-call services shall 
terminate, in accordance with procedures specified in such regu-
lations, the offering of a pay-per-call service of a provider if 
the carrier knows or reasonably should know that such service 
is not provided in compliance with title II or III of the Telephone 
Disclosure and Dispute Resolution Act or the regulations pre-
scribed by the Federal Trade Commission pursuant to such 
titles. 
"(3) SUBSCRIBER DISCONNECTION PROHIBITED.—A common 
carrier shall not disconnect or interrupt a subscriber's local 
exchange telephone service or long distance telephone service 
because of nonpajrment of charges for any pay-per-call service. 
"(4) BLOCKING AND PRESUBSCRIPTION.—A common carrier 
that provides local exchange service shall— 
"(A) ofiTer telephone subscribers (where technically fea-
sible) the option of blocking access from their telephone 
number to aily or to certain specific, prefixes or area codes 
used by pay-per-call services, which option— 
"(i) shall be offered at no charge (I) to all subscrib-
ers for a period of 60 days after the issuance of the 
regulations under subsection (b), and (II) to any sub-
scriber who subscribes to a new telephone number 
until 60 days after the time the new telephone number 
is effective; and 
"(ii) shall otherwise be offered at a reasonable 
fee; and 
"(B) offer telephone subscribers (where the Commission 
determines it is technically and economically feasible), in 
combination with the blocking option described under 
subparagraph (A), the option of presubscribing to or block-
ing only specific pay-per-call services for a reasonable one-
time charge. 
The regulations prescribed under subparagraph (AXi) of this 
E
aragraph may permit the costs of such blo<£ing to be recovered 
y contract or tariff, but such costs may not be recovered 
from local or long-distance ratepayers. Nothing in this sub-
section precludes a common carrier from filing its rates and 
regulations regarding blocking and presubscription in its inter-
state tariffs. 
"(5) VERIFICATION OF CHARITABLE STATUS.—A common car-
rier that assigns by contract or tariff a telephone number 
59-194 0—93 
18 : QL 3 (Pt. 5) 
106 STAT. 4184 
PUBLIC LAW 102-556—OCT. 28, 1992 
with a prefix or area code designated by the Commission in 
accordance with subsection (bX5) to a provider of pay-per-<^l 
services that the carrier knows or reasonably should know 
is engaged in soliciting charitable contributions shall obtain 
from such provider proof of the tax exempt status of any person 
or organization for which contributions are soUcited. 
"(6) BILLING FOR S
O
D CALLS.—A common carrier shall pro-
hibit by tariff or contract the use of any 800 telephone number, 
or other telephone number advertised or widely understood 
to be toll free, in a manner that would result in— 
"(A) the calling party being assessed, by virtue of 
completing the call, a charge for the call; 
"(B) tiie calling party being connected to a pay-per-
call service; 
"(C) the calling party being charged for information 
conveyed during the call unless the caUing party has a 
preexisting agreement to be charged for the information 
or discloses a credit or charge card number during the 
call; or 
"(D) the calling party being called back collect for the 
provision of audio information services or simultaneous 
voice conservation services, 
"(d) BILLING AND COLLECTION PRACTICES.—The regulations 
required by this section shall require that any common carrier 
that by tanff or contract assigns a telephone number with a prefix 
or area code designated by the Commission in accordance with 
subsection (bX5) to a provider of a pay-per-call service and that 
offers billing and collection services to such provider— 
"(1) ensure that a subscriber is not billed— 
"(A) for pay-per-call services that such carrier knows 
or reasonably should know was provided in violation of 
the regulations issued pursuant to title II of the Telephone 
Disclosure and Dispute Resolution Act; or 
"(B) under such other circumstances as the Conmiission 
determines necessary in order to protect subscribers from 
abusive practices; 
"(2) estabhsh a local or a toll-free telephone number to 
answer questions and provide information on subscribers'rights 
and obligations with regard to their use of pay-per-call services 
and to provide to callers the name and mailing address of 
any provider of pay-per-call services offered by the common 
carrier; 
"(3) within 60 days after the issuance of final regulations 
pursuant to subsection (b), provide, either directly or through 
contract with any local exchange carrier that provides billing 
or collection services to the common carrier, to all of such 
common carrier's telephone subscribers, to all new subscribers, 
and to all subscribers requesting service at a new location, 
a disclosiu^ statement that sets forth all rights and obligations 
of the subscriber and the carrier with respect to the use and 
payment for pay-per-call services, including the right of a sub-
scriber not to be billed and the appUcable blocking option; 
and 
"(4) in any billing to telephone subscribers that includes 
charges for suiy pay-per-call service— 
PUBLIC LAW 102-556—OCT. 28, 1992 
106 STAT. 4185 
"(A) display any charges for pay-per-call services in 
a part of tne subscriber's bill that is identified as not 
being related to local and long distance telephone charges; 
(B) for each charge so dasplayed, specify, at a mmi-
mum, the type of service, tlie amount of the charge, and 
the date, time, and duration of the call; and 
"(C) identify^ the toll-free number established pursuant 
to paragraph (2). 
"(e) LlABIUTY.— 
"(1) COMMON CARRIERS NOT LIABLE FOR TRANSMISSION OR 
B
I
L
L
I
N
G
.
—
"
S
o common carrier shall be liable for a criminal 
or civil sanction or penalty solely because the carrier provided 
transmission or billmg and collection for a pay-per-call service 
unless the carrier knew or reasonably should nave known that 
such service was provided in violation of a provision of, or 
regulation prescribed pursuant to, title II or III of the Telephone 
Disclosure and Dispute Resolution Act or any other Federal 
law. This paragraph shall not prevent the Commission from 
imposing a sanction or penalty on a common carrier for a 
violation by that carrier of a regulation prescribed under this 
section. 
"(2) CIVIL LIABILITY.—^No cause of action may be brought 
in any court or administrative agency against any common 
carrier or any of its affiliates on account of any act of the 
carrier or afiiUate to terminate any pay-per-call service in order 
to comply with the regulations prescribed under this section, 
title II or III of the Telephone Disclosure and Dispute Resolu-
tion Act, or any other Federal law unless the complainant 
demonstrates that the carrier or affiliate did not act in good 
faith, 
"(f) SPECIAL PROVISIONS.— 
"(1) CONSUMER REFUND REQUIREMENTS.—The regulations 
required by subsection (d) shall establish procedures, consistent 
with the provisions of titles II and III of the Telephone Disclo-
sure and Dispute Resolution Act, to ensure that carriers and 
other parties providing billing and collection services with 
respect to pay-per-call services provide appropriate refunds to 
subscribers who have been billed for pay-per-call services pursu-
ant to programs that have been found to have violated this 
section or such regulations, any provision of, or regulations 
prescribed pursuant to, title II or III of the Telephone Disclo-
sure and Dispute Resolution Act, or any other Federal law. 
"(2) RECOVERY OF COSTS.—The regulations prescribed by 
the Commission under this section snail penmt a common 
carrier to recover its cost of complying with such regulations 
from providers of pay-per-call services, but shall not permit 
such costs to be recovered from local or long distance rate-
payers. 
"(3) 
RECOMMENDATIONS ON DATA PAY-PER-CALL.—The 
Commission, within one year after the date of enactment of 
this section, shall submit to the Congress the Commission's 
recommendations with respect to the extension of regulations 
under this section to persons that provide, for a per-call charge, 
data services that are not pay-per-call services, 
"(g) EFFECT ON OTHER LAW.— 
"(1) No PREEMPTION OF ELECTION LAW.—^Nothing in this 
section shidl reUeve any provider of pay-per-call services, com-
106 STAT. 4186 
PUBLIC LAW 102-556—OCT. 28, 1992 
mon carrier, loc£d exchange carrier, or any other person from 
liie obligation to comply with Federal, State, and local election 
statutes and regulations. 
"(2) CONSUMER PROTECTION LAWS.—Nothing in this section 
shall relieve any provider of pay-per-call services, common car-
rier, local exchange carrier, or any other person from the obliga-
tion to comply with any Federal, State, or local statute or 
regulation relating to consumer protection or unfair trade. 
"(3) GAMBLING LAWS.—^Nothing in this section shcdl pre-
clude any State from enforcing ite statutes and regulations 
with regard to lotteries, wagering, betting, and other gambling 
activities. 
"(4) STATE AUTHORITY.—^Nothing in this section shall pre-
clude any State from enacting and enforcing additional and 
complementary oversight and regulatory systems or procedures, 
or both, so long as such systems and procedures govern intra-
state services and do not significantly impede the enforcement 
of this section or other Federal statutes. 
"(5) ENFORCEMENT OF EXISTING REGULATIONS.—Nothing in 
this section shall be construed to prohibit the Commission 
from enforcing regulations prescribed prior to the date of enact-
ment of this section in fulfiUing the requirements of this section 
to the extent that such regulations are consistent with the 
provisions of this section. 
"(h) EFFECT ON DIAL-A-PORN PROHIBITIONS.-Nothing in this 
section shall affect the provisions of section 223 of this Act. 
"(i) DEFINITION OF PAY-PER-CALL SERVICES.—For purposes of 
this section— 
"(1) The term *pay-per-call services* means any service— 
"(A) in which any person provides or purports to 
provide— 
"(i) audio information or audio entertainment pro-
duced or packaged by such person; 
"(ii) access to simultaneous voice conversation serv-
ices; or 
''(iii) any service, including the provision of a prod-
uct, tjie charges for which are assessed on the basis 
of file completion of the call; 
"(B) for which the caller pays a per-call or per-time-
interval charge iJiat is greater than, or in addition to, 
the charge for transmission of the call; and 
"(C) which is accessed through use of a 900 telephone 
number or other prefix or area code designated by the 
Commission in accordance with subsection (bX5). 
"(2) Such term does not include directory services provided 
by a common carrier or its afifiUate or by a local exchange 
carrier or its affiliate, or any service the charge for which 
is tariffed, or any service for which users are assessed charges 
only after entering into a presubscription or comparable 
arrangement with the provider of such service.". 
SEC. 102. TECHNICAL ABIENDMENT. 
47 use 2
2
7 note. 
Section 3(c) of the Telephone Consumer Protection Act of 1991 
is amended by striking "section 228" and inserting "section 227". 
PUBLIC LAW 102-556—OCT. 28, 1992 
106 STAT. 4187 
TITLE n—REGULATION OF UNFAIR AND 
DECEPTIVE ACTS AND PRACTICES IN 
CONNECTION 
WITH 
PAY-PER-CALL 
SERVICES 
SEC. 201. FEDERAL TRADE COMMISSION REGULATIONS. 
15 USC 5711. 
(a) IN GENERAL.— 
(1) ADVERTISING REGULATIONS.—The Commission shall pre-
scribe rules in accordance with this subsection to prohibit unfair 
and deceptive acts and practices in any advertisement for pay-
per-call services. Such rules shall require that the person offer-
mg such pay-per-call services— 
(A) clearly and conspicuouslv disclose in any advertis-
ing Uie cost of the use of such telephone number, including 
the total cost or the cost per minute and any other fees 
for that service and for any other pay-per-call service to 
which the caller may be transferred; 
(B) in the case of an advertisement which offers a 
prize or award or a service or product at no cost or for 
a reduced cost, clearly and conspicuously disclose the odds 
of being able to receive such prize, award, service, or prod-
uct at no cost or reduced cost, or, if such odds are not 
calculable in advance, disclose the factors determining such 
odds; 
(C) in the case of an advertisement that promotes 
a service that is not operated or expressly authorized by 
a Federal agency but uiat provides information on a Fed-
eral program, include at the beginning of such advertise-
ment a clear disclosure that the service is not authorized, 
endorsed, or approved by any Federal agency; 
(D) shall not direct such advertisement at children 
under the age of 12, unless such service is a bona fide 
educational service; 
(E) in the case of advertising directed primarily to 
individuals under the age of 18, clearly and conspicuously 
state in such advertising that such individual must have 
the consent of such individual's parent or legal guardian 
for the use of such services; 
(F) be prohibited from using advertisements that emit 
electronic tones which can automatically dial a pay-per-
C£dl telephone number; 
(G) ensure that, whenever the number to be called 
is shown in television and print media advertisements, 
the charges for the call are clear and conspicuous and 
(when shown in television advertisements) displayed for 
the same duration as that number is displayed; 
(H) in delivering any telephone message soliciting calls 
to a pay-per-call service, specify clearly, and at no less 
than the audible volume of the solicitetion, the total cost 
and the cost per minute and any other fees for that service 
and for any other pay-per-call service to which the caller 
may be transferred; and 
(I) not advertise an 800 telephone number, or any 
other telephone number advertised or widely understood 
106 STAT. 4188 
PUBLIC LAW 102-556—CKIT. 28, 1992 
to be toll free, from which callers are connected to an 
access number for a pay-per-call service. 
(2) PAY-PER-CALL SERVICE STANDARDS.—The Commission 
shall prescribe rules to require that each provider of pay-
per-caU services— 
(A) include in each pay-per-call message an introduc-
tory disclosure message tnat— 
(i) describes the service being provided; 
(ii) specifies clearly and at a reasonably under-
standable volume the total cost or the cost per minute 
and any other fees for that service and for any other 
pay-per-call service to which the caller may be trans-
ferred; 
(iii) informs the caller that charges for the call 
begin at the end of the introductory message; 
(iv) informs the caller that parental consent is 
required for calls made by children; and 
(v) in the case of a pay-per-call service that is 
not operated or expressly authorized by a Federal 
agency but that provides information on any Federal 
pro-am, a statement that clearly states that the serv-
ice is not authorized, endorsed, or approved by any 
Federal agency; 
(B) enable the caller to hang up at or before the end 
of the introductory message without incurring any charge 
whatsoever; 
(C) not direct such services at children under the age 
of 12, unless such service is a bona fide educational service; 
(D) stop the assessment of time-based charges imme-
diately upon disconnection by the caller; 
(E) disable any bypass mechanism which allows fre-
a
uent callers to avoid listening to the disclosure message 
escribed in subparagraph (A) after the institution of any 
price increase and for a period of time sufiElcient to give 
such frequent callers adequate and sufficient notice of the 
price change; 
(F) be prohibited from providing pay-per-call services 
through an 800 number or other telephone niunber adver-
tised or widely understood to be toll free; 
(G) be prohibited from billing consumers in excess of 
the amounts described in the introductoi^ message and 
from billing for services provided in violation of the rules 
prescribed by the Commission pursuant to this section; 
(H) ensure that any billing statement for such provid-
er's charges shall— 
(i) display any charges for pay-per-call services 
in a part of the consumer's bill that is identified as 
not being related to local and long distance telephone 
charges; and 
(ii) for each charge so displayed, specify, at a mini-
mum, the type of service, the amount of the charge, 
and the date, time, and duration of the call; 
(I) be liable for refunds to consumers who have been 
billed for pay-per-call services pursuant to programs that 
have been found to have violated the regulations prescribed 
pursuant to this section or title III of this Act or any 
other Federal law; and 
PUBLIC LAW 102-556—OCT. 28,1992 
106 STAT. 4189 
(J) comply with such additional standards as the 
Commission may prescribe to prevent abusive practices. 
(3) ACCESS TO INFORMATION.—The Commission shall by 
rule require a common carrier that provides telephone services 
to a provider of pay-per-call services to make available to the 
Commission any records and financial information maintained 
by such carrier relating to the arrangements (other than for 
the provision of local exchange service) between such carrier 
and any provider of pay-per-cafi services. 
(4) EVASIONS.—The rules issued by the Commission under 
this section shall include provisions to prohibit unfair or decep-
tive acts or practices that evade such rules or undermine the 
rights provided to customers under this title, including through 
the use of alternative billing or other procedures. 
(5) ExEMPTiONS.^The regulations prescribed by the 
Commission pursuant to paragraph (2XA) may exempt firom 
the requirements of such paragraph— 
(A) calls from fi^uent callers or regular subscribers 
using a bypass mechanism to avoid listening to the disclo-
sure message required by such regulations, subject to the 
requirements of paragraph (2XE); or 
(B) pay-per-call services provided at nominal charges, 
as defined by the Commission in such regulations. 
(6) 
CONSIDERATION OF OTHER RULES REQUIRED.—In 
conducting a proceeding under this section, the Commission 
shall consider requiring, by rule or regulation, that providers 
of pay-per-call services— 
(A) automatically disconnect a call after one full qwle 
of the program; and 
(B) include a beep tone or other appropriate and dear 
signal during a Uve interactive group program so that 
ciQlers will be alerted to the passage of time. 
(7) SPECIAL RULE FOR INFREQUENT PUBUCATIONS.—The 
rules prescribed by the Commission under subparagraphs (A) 
and (G) of paragraph (1) may permit, in the case of publications 
that are widelv distributed, that are printed annually or less 
firequently, and that have an establish^ polity of not publishing 
specific prices, advertising that in lieu of the cost disclosures 
required by such subparagraphs, clearly and consi>icuously dis-
close that use of the telephone number may result in a substan-
tial chai^. 
(8) TREATMENT OF RULES.—A rule issued under this sub-
section shall be treated as a rule issued under section 
18(aXlXB) of the Federal Trade Commission Act (15 U.S.C. 
57a(aXlXB)). 
(b) RULEMAKING.—^The Commission shall prescribe the rules 
under subsection (a) within 270 days after the date of enactment 
of this Act. Such rules shall be prescribed in accordance with 
section 553 of title 5, United States Code. 
(c) ENFORCEMENT.—Any violation of any rule prescribed under 
subsection (a) shall be treated as a violation of a rule respecting 
unfair or deceptive acts or practices under section 5 of the Federal 
Trade Commission Act (15 U.S.C. 45). Notwithstanding section 
5(aX2) of such Act (15 U.S.C. 45(aX2)), communications common 
carriers shall be subject to the jurisdiction of the Commission for 
purposes of this titie. 
106 STAT. 4190 
PUBLIC LAW 102-556—OCT. 28, 1992 
15 use 5712. 
SEC. 202. ACTIONS BY STATES. 
(a) IN GENERAL.—^Whenever an attomev general of any State 
has reason to believe that the interests of the residents of that 
State have been or are being threatened or adversely affected 
because an^^ person has engaged or is engaging in a pattern or 
practice which violates any rme of the Commission under section 
201(a), the State may bring a civil action on behalf of its residents 
in an appropriate (ustrict court of the United States to enjoin 
such pattern or practice, to enforce compliance with such rule 
of the Commission, to obtain damages on behalf of their residents, 
or to obtain such further and other relief as the court may deem 
appropriate. 
(b) NOTICE.—^The Stete shall serve prior written notice of any 
civil action under subsection (a) ui)on the Commission and provide 
the Commission with a copy of its complaint, except that if it 
is not feasible for the State to provide sucn prior notice, the Stete 
shall serve such notice immediately upon instituting such action. 
Upon receiving a notice respecting a civil action, the Commission 
shall have the right (1) to intervene in such action, (2) upon so 
intervening, to be heard on all matters arising therein, and (3) 
to file petitions for appeal. 
(c) VENUE.—^Any civil action brought imder this section in a 
district court of the United Stetes may be brought in the district 
wherein the defendant is found or is an inhabitant or transacte 
business or wherein the violation occurred or is occurring, and 
process in such cases may be served in any district in which 
the defendant is an inhabitent or wherever the defendant may 
be found. 
(d) INVESTIGATORY POWERS.—For purposes of bringing any civil 
action under this section, nothing in this Act shall prevent the 
attorney general from exercising the powers conferred on the attor-
ney general by the laws of such Stete to conduct investigations 
or to administer oaths or affirmations or to compel the attendance 
of witnesses or the production of documentary and other evidence. 
(e) EFFECT ON STATE COURT PROCEEDINGS.—Nothing contained 
in this section shall prohibit an authorized Stete official fi-om 
proceeding in Stete court on the basis of an alleged violation of 
any general civil or criminal antifraud stetute of such Stete. 
(f) LIMITATION.—^Whenever the Commission has instituted a 
civil action for violation of any rule or regulation under this Act, 
no Stete may, during the pendency of such action instituted by 
the Commission, subsequently institute a civil action against any 
defendant named in the Commission's complaint for violation of 
any rule as alleged in the Commission's complaint. 
(g) ACTIONS B
Y OTHER STATE OFFICIALS.— 
(1) Nothing conteined in this section shall prohibit an 
authorized Stete official from proceeding in Stete court on 
the basis of an alleged violation of any general civil or criminal 
stetute of such Stete. 
(2) In addition to actions brought by an attorney general 
of a Stete under subsection (a), such an action may be brought 
by officers of such Stete who are authorized by the State 
te bring actions in such Stete for protection of consumers and 
who are desi^ated by the Commission to bring an action 
under subsection (a) against persons that the Commission has 
determined have or are engaged in a pattern or practice which 
violates a rule of the Commission under section 201(a). 
PUBLIC LAW 102-556—OCT. 28, 1992 
106 STAT. 4191 
SEC. 208. ADBONISTRATION AND APPUCABIUTY OF TITLE. 
15 USC 5713. 
(a) IN GENERAL.—^Except as otherwise provided in section 202, 
this title shall be enforced by the Commission under the Federal 
Trade Commission Act (15 U.S.C. 41 et seq.). ConsequenUy, no 
activity which is outside the jurisdiction of that Act shall be anected 
by this Act, except for purposes of this title. 
(b) ACTIONS BY THE COMMISSION.—The Commission shall pre-
vent any person from violating a rule of the Commission under 
section 201 in the same manner, by the same means, and with 
the same jurisdiction, powers, and duties as though all applicable 
terms and provisions of the Federal Trade Commission Act (15 
U.S.C. 41 et seq.) were incorporated into and made a part of 
this title. Any person who violates such rule shall be suDJect to 
the penalties and entitled to the privileges and immunities provided 
in the Federal Trade Commission Act in the same manner, by 
the same means, and with the same jurisdiction, power, and duties 
as though all applicable terms and provisions of the Federal Trade 
Commission Act were incorporated into and made a part of this 
title. 
SEC. 204. DEFINITIONS. 
15 USC 5714. 
For purposes of this title: 
(1) The term "pay-per-call services" has the meaning pro-
vided in section 228 oi the Communications Act of 1934. 
(2) The term "attorney general" means the chief legal officer 
of a State. 
(3) The term "State" means any State of the United States, 
the District of Colimibia, Puerto Rico, the Northern Msiriana 
Islands, and any territory or possession of the United States. 
(4) The term "Commission" means the Federal Trade 
Commission. 
TITLE III—BILLING AND COLLECTION 
SEC. 301. REGULATIONS. 
15 USC 5721. 
(a) IN GENERAL.— 
(1) RULES REQUIRED.—^The Commission shall, in accordance 
with the reqiiirements of this section, prescribe rules establish-
ing procedures for the correction of bUUng errors with respect 
to telephone-billed purchases. The rules prescribed by the 
Commission shall also include provisions to prohibit unfair 
or deceptive acts or practices that evade such rules or under-
mine the rights provided to customers under this title. 
(2) 
SUBSTANTIAL SIMILARITY TO CREDIT BILLING.—The 
Commission shall promulgate rules under this section that 
impose requirements that are substantially similar to the 
requirements imposed, with respect to the resolution of credit 
disputes, imder the Truth in Lending and Fair Credit Billing 
Acts (15 U.S.C. 1601 et seq.). 
(3) TMLATMENT OF RULE.—A rule issued under paragraph 
(1) shall be treated as a rule issued under section i8(aXlXB) 
of the Federal Trade Commission Act (15 U.S.C. 57(aXlXB)). 
(b) RULEMAKING SCHEDULE AND PROCEDURE.—^The Commission 
shall prescribe tibe rules under subsection (a) within 270 days 
after me date of enactment of this Act. Such rules shall be pre-
106 STAT. 4192 
PUBLIC LAW 102-556—OCT. 28, 1992 
scribed in accordance with section 553 of title 5, United States 
Code. 
(c) ENFORCEMENT.—^Any violation of any rule prescribed under 
subsection (a) shall be treated as a violation of a rule under section 
5 of the Federal Trade Commission Act (16 U.S.C. 45) regarding 
imfair or deceptive acts or practices. Notwithstanding section 5(aX2) 
of such Act (15 U.S.C. 45(aX2)), commimications common carriers 
shall be subject to the jiuisdiction of the Commission for purposes 
of this title. 
(d) CORRECTION OF BILLING ERRORS AND CORRECTION OF 
CREDIT REPORTS.—In prescribing rules under this section, the 
Commission shall consider, with respect to telephone-billed pur-
chases, the following: 
(1) The initiation of a billing review by a customer. 
(2) Resi>onses by billing entities and providing carriers 
to the initiation of a billing review. 
(3) Investigations concerning delivery of telephone-billed 
purchases. 
(4) Limitations upon providing carrier responsibilities, 
including limitations on a carrier's responsibihty to verify deUv-
ery of audio information or entertainment. 
(5) Requirements on actions by billing entities to set aside 
chaises 
from 
a customer's billing stieitement. 
(6) Limitations on collection actions by billing entities and 
vendors. 
(7) The regulation of credit reports on billing disputes. 
(8) The prompt notification of credit to an account. 
(9) Rights of customers and telephone common carriers 
regarding 3aims and defenses. 
(10) Tlie extent to which the regulations should diverge 
from requirements under the Truth in Lending and Fair Credit 
Billing Acts in order to protect customers, and in order to 
be cost effective to billing entities. 
15 use 5722. 
SEC. 302. RELATION TO STATE LAWS. 
(a) STATE LAW APPUCABLE UNLESS INCONSISTENT.—This title 
does not annul, alter, or affect, or exempt any person subject to 
the provisions of this title from complying wiui, the laws of any 
State with respect to telephone billing practices, except to the 
extent that those laws are inconsistent with any provision of this 
title, and then only to the extent of the inconsistency. The Commis-
sion is authorized to determine whether such inconsistencies exist. 
The Commission may not determine that any State law is inconsist-
ent with any provision of this chapter if the Commission determines 
that such law gives greater protection to the consumer. 
(b) REGULATORY EXEMPTIONS.—The Commission shall by regu-
lation exempt from the requirements of this title any class of 
telephone-billed purchase transactions within any State if it deter-
mines that under the law of that State that class of transactions 
is subject to requirements substantially similar to those imposed 
under this chapter or that such law gives greater protection to 
the consumer, and that there is adequate provision for enforcement. 
15 use 5723. 
SEC. 308. ENFORCEMENT. 
The Commission shall enforce the requirements of this title. 
For the purpose of the exercise by the Commission of its functions 
and powers under the Federal Trade Commission Act, a violation 
of any requirement imposed under this title shall be deemed a 
PUBLIC LAW 102-556—OCT. 28, 1992 
106 STAT. 4193 
violation of a requirement imposed under that Act. All the fimctions 
and powers of the Commission imder that Act £u:e avcdlable to 
the Commission to enforce compliance by any person with the 
requirements imposed under this title, irrespective of whether that 
person is engaged in commerce or meets any other iurisdictional 
tests in that Act. The Commission may prescribe sucn regulations 
as are necessary or appropriate to implement the provisions of 
this title. 
SEC. 304. DEFINITIONS. 
15 USC 5724. 
As used in this title— 
(1) The term "telephone-billed purchase" means any pur-
chase that is completea solely as a consequence of the comple-
tion of the call or a subsequent dialing, touch tone entry, 
or comparable action of the caller. Such term does not include— 
(A) a purchase by a caller pursuant to a preexisting 
agreement with the vendor; 
(B) local exchange telephone services or interexchange 
telephone services or any service that the Federal Commu-
nications Commission determines, by rule— 
(i) is closely related to the provision of local 
exchange telephone services or interexchange tele-
phone services; and 
(ii) is subject to billing dispute resolution proce-
dures required by Federal or State statute or regula-
tion; or 
(C) the purchase of goods or services which is otherwise 
subject to billing dispute resolution procedures required 
by Federal statute or regulation. 
(2) A **billing error" consists of any of the following: 
(A) A reflection on a billing statement for a telephone-
billed purchase which was not made by the customer or, 
if made, was not in the amount reflected on such statement. 
(B) A reflection on a billing statement of a telephone-
billed purchase for which the customer requests additional 
clarification, including documentary evidence thereof. 
(C) A reflection on a billing statement of a telephone-
billed purchase that was not accepted by the customer 
or not provided to the customer in accordance with the 
stated terms of the transaction. 
(D) A reflection on a billing statement of a telephone-
billed purchase for a call made to an 800 or other toll 
free telephone number. 
(E) The failure to reflect properly on a billing statement 
a pajnnent made by the customer or a credit issued to 
the customer with respect to a telephone-billed purchase. 
(F) A computation error or similar error of an account-
ing nature on a statement. 
(G) Failure to transmit the billing statement to the 
last known address of the customer, unless that address 
was furnished less than twenty days before the end of 
the billing cycle for which the statement is required. 
(H) Any other error described in regulations prescribed 
by the Commission pursuant to section 553 of title 5, 
United States Code. 
(3) The term "Commission" means the Federal Trade 
Commission. 
106 STAT. 4194 
PUBLIC LAW 102-556—OCT. 28, 1992 
(4) The term "providing carrier^ means a local exchange 
or interexchange common carrier providing telephone services 
(other than loc^ exchange services) to a vendor for a telephone-
billed purchase that is me subject of a billing error complaint. 
(5) The term "vendor^ means any person who, through 
the use of the telephone, offers goods or services for a telephone-
billed purchase. 
(6) The term "customer" means any person who acquires 
or attempts to acquire goods or services m a telephone-billed 
purchase. 
TITLE IV—MISCELLANEOUS 
PROVISIONS 
SEC. 401. PROPOSAL FOR DEMONSTRATING THE POTENTIAL OF 
INNOVATIVE COMMUNICATIONS EQUIPMENT AND SERV-
ICES. 
(a) DEMONSTRATION PROPOSAL.—Within 180 days after the date 
of enactment of this Act, the Assistant Secretary of Energy for 
Conservation and Renewable Ener^, in consultetion with the 
Assistent Secretly of Commerce for Communications and Informa-
tion, shall submit to Congress a proposal for demonstrating the 
ability of new and innovative commimications equipment and serv-
ices to further the national goals of conserving ener^ and protecting 
public health and safety. 
(b) FACTORS TO BE ADDRESSED.—The demonstration proposal 
required by subsection (a) shall address— 
(1) the fecusibility of using communications technologies 
to read meters from remote locations; 
(2) the feasibility of managing the consumption of electrical 
power and natural gas by residences and businesses, thereby 
reducing the demand for new and additional sources of energy, 
and controlling the cost of providing improved utility services; 
and 
(3) the public safety implications of monitoring utility serv-
ices outeges during earthquakes, hurricanes, typhoons, torna-
does, volcanoes, and other natural disasters. 
(c) PROJECT TO DEMONSTRATE ENERGY CONSERVATION POTEN-
TIAL.—^Upon submission of the demonstration proposal to the Con-
gress, the Secretary of Energy shall consider requesting from the 
Assistant Secretary of Commerce for Communications and Informa-
tion the authority to use radio frequencies, pursuant to section 
305 of the Communications Act of 1934 (47 U.S.C. 305), to carry 
out demonstration projecte consistent with the proposal that are 
designed to demonstrate the energy conservation potential of 
communications technologies and which are administered by the 
Secretary of Energy. 
SEC. 402. TECHNICAL AMENDBfENTS. 
Section 227(bX2) of the Communications Act of 1934 (47 U.S.C. 
227(bX2» is amended— 
(1) by striking "and" at the end of subparagraph (A); 
(2) by strikiilg the period at the end of subparagraph (B) 
and inserting "; and"; and 
(3) by inserting after subparagraph (B) the following new 
subparagraph: 
PUBLIC LAW 102-556—OCT. 28, 1992 
106 STAT. 4195 
"(C) may, by rule or order, exempt from the require-
ments of paragraphs (IXAXiii) of this subsection calls to 
a telephone number assigned to a cellular telephone service 
that are not charged to the called party, subject to such 
conditions as the Commission may prescribe as necessary 
in the interest of the privacy rights tiiis section is intended 
to protect.". 
SEC. 403. INTERCEPTION OF CELLULAR TELECOMMUNICATIONS. 
(a) AMENDMENT.—Section 302 of the Communications Act of 
1934 (47 U.S.C. 302) is amended by adding at the end the following 47 use 302a. 
new subsection: 
"(dXD Within 180 days after the date of enactment of this Regulations, 
subsection, the Commission shall prescribe and make effective regu-
lations den}dng equipment authorization (under part 15 of title 
47, Code of Federal Regulations, or any other part of that title) 
for any scanning receiver that is capable of— 
"(A) receiving transmissions in the frequencies allocated 
to the domestic cellular radio telecommunications service, 
"(B) readily being altered by the user to receive trans-
missions in such frequencies, or 
"(C) being equipped with decoders that convert digital cel-
lular transmissions to analog voice audio. 
"(2) Beginning 1 year after the effective date of the regulations 
adopted pursuant to paragraph (1), no receiver having the capabili-
ties described in subparagraph (A), (B), or (C) of paragraph (1), 
as such capabilities are defined in such regulations, shall be manu-
factured in the United States or imported for use in the United 
States.". 
(b) REPORT TO CONGRESS.—The Commission shall report to 
Congress no later than June 1, 1993, on available security features 
for both analog and digital radio signals. This report shall include 
a study of security technologies currently available as well as those 
in development. The study shall assess the capabilities of such 
technologies, level of security afforded, and cost, with wide-spread 
deployment of such technologies. 
(c) EFFECT ON OTHER LAWS.—^This section shall not afTect sec- 47 use 302a 
tion 2512(2) of title 18, United States Code. 
"°*^ 
Approved October 28, 1992. 
LEGISLATIVE HISTORY—H.R. 6191: 
eONGRESSIONAL RECORD, Vol. 138 (1992): 
Oct. 5, considered and passed House. 
Oct. 7, considered and passed Senate.