47 U.S.C. § 228 : US Code - Section 228: Regulation of carrier offering of pay-per-call services

Search 47 U.S.C. § 228 : US Code - Section 228: Regulation of carrier offering of pay-per-call 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-call
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 October
28, 1992, 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 chapter and other applicable
Federal statutes and regulations. The Commission's final rules
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 (i)(1) of this section be offered only through
the use of certain telephone number prefixes and area codes.
(c) Common carrier obligations
Within 270 days after October 28, 1992, the Commission shall, by
regulation, establish the following requirements for common
carriers:
(1) Contractual obligations to comply
Any common carrier assigning to a provider of pay-per-call
services a telephone number with a prefix or area code designated
by the Commission in accordance with subsection (b)(5) of this
section shall require by contract or tariff that such provider
comply with the provisions of titles II and III of the Telephone
Disclosure and Dispute Resolution Act [15 U.S.C. 5711 et seq.;
5721 et seq.] 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
number with a prefix or area code designated by the Commission in
accordance with subsection (b)(5) of this section 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 considers
necessary for the enforcement of this section and other
applicable Federal statutes and regulations.
(3) 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 (b)(5) of this section to a provider
of pay-per-call services shall terminate, in accordance with
procedures specified in such regulations, 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 [15 U.S.C. 5711 et seq.; 5721 et seq.] or
the regulations prescribed by the Federal Trade Commission
pursuant to such titles.
(4) 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 nonpayment of charges for any pay-
per-call service.
(5) Blocking and presubscription
A common carrier that provides local exchange service shall -
(A) offer telephone subscribers (where technically feasible)
the option of blocking access from their telephone number to
all, 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 subscribers
for a period of 60 days after the issuance of the regulations
under subsection (b) of this section, and (II) to any
subscriber 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 blocking
only specific pay-per-call services for a reasonable one-time
charge.
The regulations prescribed under subparagraph (A)(i) of this
paragraph may permit the costs of such blocking to be recovered
by contract or tariff, but such costs may not be recovered from
local or long-distance ratepayers. Nothing in this subsection
precludes a common carrier from filing its rates and regulations
regarding blocking and presubscription in its interstate tariffs.
(6) Verification of charitable status
A common carrier that assigns by contract or tariff a telephone
number with a prefix or area code designated by the Commission in
accordance with subsection (b)(5) of this section to a provider
of pay-per-call 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 solicited.
(7) Billing for 800 calls
A common carrier shall prohibit 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) the calling party being connected to a pay-per-call
service;
(C) the calling party being charged for information conveyed
during the call unless -
(i) the calling party has a written agreement (including an
agreement transmitted through electronic medium) that meets
the requirements of paragraph (8); or
(ii) the calling party is charged for the information in
accordance with paragraph (9);
(D) the calling party being called back collect for the
provision of audio information services or simultaneous voice
conversation services; or
(E) the calling party being assessed, by virtue of being
asked to connect or otherwise transfer to a pay-per-call
service, a charge for the call.
(8) Subscription agreements for billing for information provided
via toll-free calls
(A) In general
For purposes of paragraph (7)(C)(i), a written subscription
does not meet the requirements of this paragraph unless the
agreement specifies the material terms and conditions under
which the information is offered and includes -
(i) the rate at which charges are assessed for the
information;
(ii) the information provider's name;
(iii) the information provider's business address;
(iv) the information provider's regular business telephone
number;
(v) the information provider's agreement to notify the
subscriber at least one billing cycle in advance of all
future changes in the rates charged for the information; and
(vi) the subscriber's choice of payment method, which may
be by direct remit, debit, prepaid account, phone bill, or
credit or calling card.
(B) Billing arrangements
If a subscriber elects, pursuant to subparagraph (A)(vi), to
pay by means of a phone bill -
(i) the agreement shall clearly explain that the subscriber
will be assessed for calls made to the information service
from the subscriber's phone line;
(ii) the phone bill shall include, in prominent type, the
following disclaimer:
"Common carriers may not disconnect local or long
distance telephone service for failure to pay disputed
charges for information services."; and
(iii) the phone bill shall clearly list the 800 number
dialed.
(C) Use of PINs to prevent unauthorized use
A written agreement does not meet the requirements of this
paragraph unless it -
(i) includes a unique personal identification number or
other subscriber-specific identifier and requires a
subscriber to use this number or identifier to obtain access
to the information provided and includes instructions on its
use; and
(ii) assures that any charges for services accessed by use
of the subscriber's personal identification number or
subscriber-specific identifier be assessed to subscriber's
source of payment elected pursuant to subparagraph (A)(vi).
(D) Exceptions
Notwithstanding paragraph (7)(C), a written agreement that
meets the requirements of this paragraph is not required -
(i) for calls utilizing telecommunications devices for the
deaf;
(ii) for directory services provided by a common carrier or
its affiliate or by a local exchange carrier or its
affiliate; or
(iii) for any purchase of goods or of services that are not
information services.
(E) Termination of service
On receipt by a common carrier of a complaint by any person
that an information provider is in violation of the provisions
of this section, a carrier shall -
(i) promptly investigate the complaint; and
(ii) if the carrier reasonably determines that the
complaint is valid, it may terminate the provision of service
to an information provider unless the provider supplies
evidence of a written agreement that meets the requirements
of this section.
(F) Treatment of remedies
The remedies provided in this paragraph are in addition to
any other remedies that are available under subchapter V of
this chapter.
(9) Charges by credit, prepaid, debit, charge, or calling card in
absence of agreement
For purposes of paragraph (7)(C)(ii), a calling party is not
charged in accordance with this paragraph unless the calling
party is charged by means of a credit, prepaid, debit, charge, or
calling card and the information service provider includes in
response to each call an introductory disclosure message that -
(A) clearly states that there is a charge for the call;
(B) clearly states the service's total cost per minute and
any other fees for the service or for any service to which the
caller may be transferred;
(C) explains that the charges must be billed on either a
credit, prepaid, debit, charge, or calling card;
(D) asks the caller for the card number;
(E) clearly states that charges for the call begin at the end
of the introductory message; and
(F) clearly states that the caller can hang up at or before
the end of the introductory message without incurring any
charge whatsoever.
(10) Bypass of introductory disclosure message
The requirements of paragraph (9) shall not apply to calls from
repeat callers using a bypass mechanism to avoid listening to the
introductory message: Provided, That information providers shall
disable such a bypass mechanism after the institution of any
price increase and for a period of time determined to be
sufficient by the Federal Trade Commission to give callers
adequate and sufficient notice of a price increase.
(11) "Calling card" defined
As used in this subsection, the term "calling card" means an
identifying number or code unique to the individual, that is
issued to the individual by a common carrier and enables the
individual to be charged by means of a phone bill for charges
incurred independent of where the call originates.
(d) Billing and collection practices
The regulations required by this section shall require that any
common carrier that by tariff or contract assigns a telephone
number with a prefix or area code designated by the Commission in
accordance with subsection (b)(5) of this section 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 [15 U.S.C. 5711 et seq.];
or
(B) under such other circumstances as the Commission
determines necessary in order to protect subscribers from
abusive practices;
(2) establish 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) of this section, 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 disclosure 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 subscriber not to be billed and the applicable blocking option;
and
(4) in any billing to telephone subscribers that includes
charges for any pay-per-call service -
(A) display any charges for pay-per-call services in a part
of the subscriber's bill that is identified as not being
related to local and long distance telephone charges;
(B) for each charge so displayed, specify, at a minimum, the
type of service, the 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) Liability
(1) Common carriers not liable for transmission or billing
No common carrier shall be liable for a criminal or civil
sanction or penalty solely because the carrier provided
transmission or billing and collection for a pay-per-call service
unless the carrier knew or reasonably should have 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 [15 U.S.C. 5711
et seq.; 5721 et seq.] 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 affiliate 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 Resolution Act [15 U.S.C. 5711
et seq.; 5721 et seq.], 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) of this section
shall establish procedures, consistent with the provisions of
titles II and III of the Telephone Disclosure and Dispute
Resolution Act [15 U.S.C. 5711 et seq.; 5721 et seq.], 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 pursuant 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 Disclosure and Dispute Resolution Act, or any other
Federal law.
(2) Recovery of costs
The regulations prescribed by the Commission under this section
shall permit 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 ratepayers.
(3) Recommendations on data pay-per-call
The Commission, within one year after October 28, 1992, 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 shall relieve any provider of pay-per-
call services, common carrier, local exchange carrier, or any
other person from the 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 carrier, local exchange carrier, or any
other person from the obligation 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 shall preclude any State from enforcing
its statutes and regulations with regard to lotteries, wagering,
betting, and other gambling activities.
(4) State authority
Nothing in this section shall preclude 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 intrastate 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 October
28, 1992, in fulfilling 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 title.
(i) "Pay-per-call services" defined
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 produced or
packaged by such person;
(ii) access to simultaneous voice conversation services; or
(iii) any service, including the provision of a product,
the charges for which are assessed on the basis of the
completion of the call;
(B) for which the caller pays a per-call or per-time-interval
charge that 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 (b)(5) of this section.
(2) Such term does not include directory services provided by a
common carrier or its affiliate or by a local exchange carrier or
its affiliate, or any service for which users are assessed
charges only after entering into a presubscription or comparable
arrangement with the provider of such service.