A bill to provide for regulation and oversight of the development and application of the telephone technology known as pay-per-call, and for other purposes.
Telephone Consumer Assistance Act - Directs: (1) the Federal Trade Commission (FTC) to establish a system for registration by providers of pay-per-call (PPC) services; and (2) the FTC and the Federal Communications Commission (FCC) to establish a system for oversight and regulation of PPC services to protect consumers.
Sets forth minimum standards for PPC services which require that such services: (1) include an introductory disclosure message that describes the service being provided and the maximum charge per minute or per call and other charges, and informs the caller of the option to hang up before the end of the introductory message without incurring any charge; (2) in fact allow the caller to hang up before the end of such message without charge; (3) after the institution of any increase in charges for the service, disable any bypass mechanism which allows frequent callers to avoid listening to the complete introductory disclosure message for a period sufficient to give frequent callers adequate notice of the increase; (4) stop the assessment of time-based charges immediately upon disconnection by the caller; (5) only be offered from certain telephone number prefixes; and (6) not be aimed at children under age 16, except in the case of a bona fide educational service.
Bars common carriers from either disconnecting a subscriber's telephone service because of nonpayment of charges for any PPC service or contracting with a PPC service provider for carriage of such service if the provider has not registered with the FTC.
Requires common carriers that provide local exchange services, where technically feasible, to offer telephone subscribers: (1) the option of blocking access from their telephone number to all prefixes used by PPC services at no charge for a specified period or at a reasonable fee; and (2) in combination with a blocking option, the option of presubscribing to specific PPC services for a reasonable one-time charge.
Requires common carriers that engage in billing and collection of charges for PPC services to: (1) give telephone subscribers the option of cancelling charges for PPC services in instances of unauthorized use or misunderstanding of such charges at the time of use, subject to reasonable limitations; (2) include, in the first billing to telephone subscribers subscribing to a new telephone number and at least annually therafter, a disclosure statement that sets forth all rights and obligations held by the subscriber and the carrier with respect to the use and payment for PPC services and which describes the applicable blocking options; (3) display any PPC service charges on a telephone subscriber's bill separately from the parts relating to local and long distance telephone charges, including the name of the service, the amount of the charge, and the date, time, and duration of the call; (4) obtain from the provider, in instances when such carriers contract for the collection and distribution of charges by PPC services that solicit charitable contributions, proof of tax exempt status; (5) withhold payment of charges to any PPC provider where the carrier reasonably believes that such provider is not in compliance with rules or regulations issued under this Act; and (6) have the right to recover such carrier's costs of complying with specified provisions of this Act from the PPC provider.
Sets forth requirements concerning the advertising of PPC services.
Specifies: (1) matters for FCC and FTC consideration in conducting rulemaking proceedings, such as whether a PPC service should be required to automatically disconnect a call after one full cycle of the program or if no activity occurs within a reasonable, specified time period; (2) that this Act shall have no effect on election laws, dial-a-porn prohibitions, gambling laws, or unfair trade laws, and shall not preclude any State from enacting and enforcing additional and complementary oversight and regulatory systems or procedures, or both; (3) that any violation of FCC regulations issued under this Act shall be treated as a violation of the rules and regulations under the Communications Act of 1934, subjecting violators to specified criminal and forfeiture penalties; and (4) that any violation of FTC rules prescribed under this Act shall be treated as a violation of the Federal Trade Commission Act regarding unfair or deceptive acts or practices, subjecting violators to penalties under such Act.
Authorizes State attorneys general to seek damages or other appropriate relief against PPC service providers believed to have engaged, or be engaging, in acts which violate any FTC or FCC rule or regulation under this Act which threaten the interests of residents of the State. Grants the Federal district courts exclusive jurisdiction over such civil actions. Requires the State to serve prior written notice of any such action upon the FTC or FCC, as appropriate. Grants the FTC or FCC the right to intervene, be heard, and file petitions for appeal.
Sets forth provisions with respect to venue, investigatory powers of the State attorney general, effect on State court proceedings, and other limitations.
Requires the FTC to: (1) conduct a study of the acquisition and use by PPC service providers of callers' telephone numbers to generate, compile, and sell or lease lists of such numbers, investigate the extent to which such numbers are obtained with or without the knowledge or consent of the caller, and identify methods by which callers could be given the opportunity to grant or withhold that consent; and (2) report to the Congress and the FCC on the results of such study, together with any recommendations for changes to prevent abuses.
Introduced in Senate
Read twice and referred to the Committee on Commerce.
Subcommittee on Communications. Hearings held. Hearings printed: S.Hrg. 102-358.
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