Telephone Disclosure and Dispute Resolution Act

Telephone Disclosure and Dispute Resolution Act - Title I: Audiotext Industry Obligations and Consumer Rights - Amends the Communications Act of 1934 to require the Federal Communications Commission (FCC), within 270 days, to complete a rulemaking proceeding to establish a system for the oversight and regulation of audiotext services.

Requires the FCC's final rules to: (1) include measures that provide a consumer of audiotext 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 such services; (3) include requirements on such carriers to protect against abusive practices by providers of such services; (4) prohibit customers from being disconnected from local exchange services for refusal to pay for such services; and (5) identify procedures by which common carriers and providers of such services may take affirmative steps to protect against nonpayment of legitimate charges.

Specifies that such regulations shall prohibit any common carrier from offering audiotext services of any provider of such services who fails to: (1) include in each audiotext message an introductory disclosure message that describes the service being provided, specifies clearly and at a reasonably understandable volume the total cost or cost per minute and any other fees for such service and for any other audiotext service to which the caller may be transferred, informs the caller of the option to hang up at the end of the introductory message without incurring any charge, and informs the caller that parental consent is required for calls made by children; (2) disable any bypass mechanism which allows frequent callers to avoid listening to the disclosure message after the institution of any price increase and for a period of time sufficient to give frequent callers sufficient notice of the price change; (3) stop the assessment of time-based charges immediately upon disconnection by the caller; (4) include an appropriate and clear signal at intervals determined by the FCC, where technically feasible, during live interactive group programs, to alert callers to the passage of time, and explain such signal in the disclosure required for such program, except with respect to programs for which the caller is required to preregister or presubscribe; and (5) comply with such additional standards as the FCC may prescribe to prevent abusive practices. Directs that such regulations require that any common carriers offering audiotext services: (1) require, pursuant to contract or tariff, that a provider of audiotext services comply with regulations issued pursuant to such Act and terminate the offering of an audiotext service of a provider if such service is not provided in compliance with such regulations; (2) ensure that a caller is not billed with respect to services provided in violation of such regulations or under such other circumstances as the FCC determines necessary to protect callers from abusive practices; (3) establish a local or toll-free telephone number to answer questions and provide information on callers' rights and obligations with regard to their use of audiotext services offered by the common carrier; (4) within 60 days after the issuance of final regulations, provide to all of such common carrier's telephone subscribers a disclosure statement that clearly sets forth all rights and obligations held by the subscriber and the carrier with respect to the use and payment for audiotext services, describes any nonpayment option prescribed by the FCC and the applicable blocking option, and provides an explanation of live interactive programming; (5) ensures that charges for audiotext services are stated separately on the bill from the sections relating to local and long distance telephone charges and that such statement includes the common carrier's toll-free telephone number; (6) notify in writing the State regulatory commission of any State within which the carrier intends to offer audiotext services of such intention, including a description of the service to be provided and a list of the carrier's policies and procedures; (7) make available to such State regulatory commission, upon request, a list of audiotext telephone numbers accessible by callers within that State through such carrier, including the name, business address, and business telephone number of the audiotext provider; and (8) obtain from any provider of audiotext services that solicits charitable contributions proof of tax exempt status.

Specifies that such regulations shall require that any local exchange carrier carrying audiotext services must offer callers the option of blocking access to all audiotext services for their telephone, whenever technologically feasible. Allows such regulation to permit the costs of such blocking to be recovered by contract or tariff, but specifies that such costs may not be recovered from local or long distance ratepayers. Directs that such option be offered without charge to the caller for a reasonable period (established by FCC regulations) after the effective date of such regulation, an initial connection, or subscription for any new telephone line.

Specifies that such regulations may exempt from introductory message requirements: (1) calls from frequent callers or regular subscribers using a bypass mechanism to avoid listening to the disclosure message required by such regulations; or (2) auditext services provided at nominal charges.

Directs: (1) that such regulations establish procedures, consistent with provisions of this Act, to ensure that carriers offering audiotext services and other parties provide appropriate refunds to callers who have been billed for audiotext services pursuant to programs found to have violated such Act, such regulations, or any other Federal, State, or local consumer protection law; and (2) the FCC, within one year, to submit to the Congress its recommendations with respect to the extension of such regulations to services that provide, for a per call charge, data services that are not audiotext services.

Specifies that no cause of action may be brought in any court or administrative agency against a common carrier or its affiliates on account of any act of the carrier or affiliate and which the carrier or affiliate takes in good faith to terminate an audiotext service in order to comply with the regulations prescribed under such Act.

Title II: Use of the 900 Telephone Number - Directs the Federal Trade Commission (FTC) to prescribe rules for any advertisement for services or products procured through the use of a telephone number with a 900 or other access code under which liability for the service or product provided attaches to the telephone bill of the individual calling such number which require that the person offering such services or products: (1) clearly disclose in any advertising the cost of the use of such number; (2) in the case of an advertisement which offers a prize or award, clearly disclose the odds of receiving such prize or award; (3) in the case of individuals under age 18 using such number, clearly state, where appropriate, that such individual must have the consent of such individual's parent or legal guardian for the use of such number; and (4) be prohibited from using ads that emit electronic tones which can automatically dial a pay-per-call number.

Requires the FTC to require a common carrier that provides such services to make available to the FTC 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 the vendor.

Sets forth additional provisions with respect to FTC rulemaking and enforcement.

Authorizes the States to bring civil actions to enjoin telemarketing, enforce compliance with FTC regulations, obtain damages on behalf of their residents, or obtain further appropriate relief whenever a State attorney general has reason to believe that the interests of State residents have been or are being threatened or adversely affected because a person has engaged in or is engaging in a pattern or practice which violates FTC rules promulgated pursuant to this Act, subject to notice provisions. Bars States from instituting such actions during the pendency of a civil action by the FTC for a violation of a rule, but does not bar actions by other State officials from proceeding in State court on the basis of an alleged violation of any State general civil or criminal statute.

Provides for principal enforcement of this title by the FTC under the Federal Trade Commission Act.

Title III: Telephone Services Billing and Collection - Authorizes a customer to initiate a billing review with respect to a telephone-billed purchase by sending, within 30 days after receipt of a billing statement from a billing carrier that contains a charge for such purchase, a written notice to such billing carrier in which the customer: (1) sets forth or otherwise enables such carrier to identify the name of the customer and the telephone number to which the charge was billed; (2) indicates the customer's belief that the statement contains a billing error that relates to a telephone-billed purchase and the amount of the error; and (3) sets forth the reasons for the belief that the statement contains a billing error.

Sets forth provisions with respect to: (1) the response by a billing carrier and a providing carrier to such notice; (2) investigations concerning the delivery of telephone-billed purchases; (3) termination of providing carrier responsibility; (4) permitted actions by billing carriers; (5) collection actions; and (6) forfeiture of rights by a billing or providing carrier who fails to comply with provisions of this Act.

Bars a vendor, billing carrier, providing carrier, or its agents (vendor), after receiving a notice contesting the charge, from threatening to report to any person adversely on the customer's credit rating or credit standing because of the customer's failure to pay the amount in dispute, to report such amount as delinquent to any third party until the billing or providing carrier has met the requirements of this title and has allowed the customer 20 days thereafter to make payment, or, upon receiving a further written notice from a customer that the amount is still in dispute, from reporting that the customer's account is in arrears because of failure to pay such amount without reporting that the amount is in dispute and notifying the customer of the name and address of each party to whom the vendor is reporting information concerning the arrearage. Requires such vendor to report any subsequent resolution of the matter to the parties to whom such matter was initially reported.

Specifies that: (1) with respect to any telephone-billed purchase where the vendor is a person other than the billing carrier, and where the vendor accepts or allows a forgiveness of a debit for such purchase, the vendor shall promptly transmit to the billing carrier a credit statement and the billing carrier shall credit the customer's account for the purchase amount; and (2) a billing or providing carrier who seeks to collect charges for a telephone-billed purchase from a customer for a vendor shall be subject to all (except tort) claims and defenses arising out of any such purchase in which the customer's telephone billing account is used as a method for collection, if the customer has made a good faith attempt to obtain a satisfactory resolution of the dispute (but limits the billing carrier's liability to the amount billed to the customer for the purchase).

Sets forth provisions with respect to: (1) resolving inconsistencies between State laws with respect to telephone billing practices and this title; (2) regulatory exemptions from this title which may be granted by the FTC of transactions within a State offering substantially similar or greater protection to the consumer; and (3) enforcement of this title.

Directs the FTC to conduct an ongoing study of the need to develop and implement additional provisions to prevent evasions of the requirements of this title.

Sets forth reporting requirements.