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106th CONGRESS
2d Session
H. R. 5619
To require the Federal Communications Commission and the Federal Trade
Commission to prevent fraudulent and misleading advertising by carriers
providing ``dial-around'' long distance services.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 1, 2000
Mrs. Lowey (for herself, Mr. Brown of Ohio, Ms. McKinney, Mr. Kildee,
and Mr. Rangel) introduced the following bill; which was referred to
the Committee on Commerce
_______________________________________________________________________
A BILL
To require the Federal Communications Commission and the Federal Trade
Commission to prevent fraudulent and misleading advertising by carriers
providing ``dial-around'' long distance services.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Save Consumers Aggravation and Money
Act of 2000''.
SEC. 2. RATE DISCLOSURES BY PROVIDERS OF DIAL-AROUND SERVICES.
Title II of the Communications Act of 1934 is amended by inserting
after section 231 (47 U.S.C. 231) the following new section:
``SEC. 232. RATE DISCLOSURES BY PROVIDERS OF DIAL-AROUND SERVICES.
``(a) Definitions.--As used in this section:
``(1) Dial-around services.--The term `dial-around
services' means a product or service by which a person may use
a seven-digit code to bypass such person's preferred interstate
carrier to gain access to the telecommunications services of
another carrier.
``(2) Consumer.--The term `consumer' means a person
initiating any interstate telephone call using a seven-digit
code to obtain dial-around services.
``(3) Preferred interstate carrier.--The term `preferred
interstate carrier' means the carrier that provides interstate
service to a consumer on a prescribed basis.
``(4) Presubscribed basis.--The term `presubscribed basis'
means the selection of a common carrier to carry all interstate
calls initiated by dialing `1' or `0' plus the area code, plus
the terminating telephone number, or by dialing `011' or `00'.
``(5) Provider of dial-around services.--The term `provider
of dial-around services' means any common carrier that provides
interexchange services, or any other person determined by the
Commission to be providing interexchange services, through the
use of a dial-around code.
``(b) Requirements for Providers.--Beginning not later than 90 days
after the date of enactment of this section, each provider of dial-
around services shall, at a minimum--
``(1) identify itself, audibly and distinctly, to the
consumer at the beginning of each telephone call and before the
consumer incurs any charge for the call;
``(2) disclose immediately to the consumer, upon request
and at no charge to the consumer--
``(A) a quote of its rates or charges for the call;
``(B) the methods by which such rates or charges
will be collected; and
``(C) the methods by which complaints concerning
such rates, charges, or collection practices will be
resolved; and
``(3) permit the consumer to terminate the telephone call
at no charge before the call is connected.
``(c) General Rulemaking Required.--
``(1) Rulemaking proceeding.--The Commission shall conduct
a rulemaking proceeding pursuant to this section and section
201(b) to prescribe regulations to--
``(A) protect consumers from unfair and deceptive
practices relating to their use of dial-around services
to place interstate telephone calls; and
``(B) ensure that consumers have the information
necessary to make informed choices in making such
calls.
``(2) Contents of regulations.--The regulations prescribed
under this section shall--
``(A) contain provisions to implement each of the
requirements of this section; and
``(B) contain such other provisions as the
Commission determines necessary to carry out this
section and section 201(b) and the purposes and
policies of this section and section 201(b).
``(d) Statutory Construction.--Nothing in this section shall be
construed to alter the obligations, powers, or duties of common
carriers or the Commission under section 201(b) on the other sections
of this Act.''.
SEC. 3. PREVENTION OF FRAUDULENT ADVERTISING OF DIAL-AROUND SERVICES.
(a) Amendment.--Section 201 of the Telephone Consumer Protection
Act of 1991 (15 U.S.C. 5711) is amended--
(1) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively; and
(2) by inserting after subsection (a) the following new
subsection:
``(b) Dial-Around Services Advertising.--
``(1) Advertising regulations.--The Commission shall
prescribe rules in accordance with this subsection to prohibit
unfair and deceptive acts and practices in any advertisement
for dial-around services. Such rules shall require that the
person offering such dial-around services--
``(A) clearly and conspicuously disclose in any
advertising the cost of the use of such dial-around
services, including the total cost or the cost per
minute and any other fees for that service and for any
other dial-around service to which the caller may be
transferred;
``(B) be prohibited from using advertisements that
emit electronic tones which can automatically dial a
dial-around telephone number;
``(C) ensure that, whenever the dial-around code
number to be called is shown in television and print
media advertisements, the charges for dial-around
services are clear and conspicuous and (when shown in
television advertisements) displayed for the same
duration as that number is displayed; and
``(D) in delivering any telephone message
soliciting calls to a dial-around service, specify
clearly, and at no less than the audible volume of the
solicitation, the total cost and the cost per minute
and any other fees for that service and for any other
dial-around service to which the caller may be
transferred.
``(3) Access to information.--The Commission shall by rule
require a common carrier that provides telephone services to a
provider of dial-around 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 dial-around services.
``(4) Evasions.--The rules issued by the Commission under
this section shall include provisions to prohibit unfair or
deceptive 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) Treatment of rules.--A rule issued under this
subsection shall be treated as a rule issued under section
18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C.
57a(a)(1)(B)).
``(6) Effect on fcc.--Nothing in this section shall be
construed to limit or otherwise alter the authority of the
Federal Communications Commission under section 201(b), section
232, or any other provisions, of the Communications Act of
1934.''.
(b) Conforming Amendments.--
(1) Deadline for regulations.--Section 201(c) of such Act
(as redesignated by subsection (a)(1)) is amended by inserting
after the first sentence the following: ``The Commission shall
prescribe the rules under subsection (b) within 270 days after
the date of enactment of the Save Consumers Aggravation and
Money Act of 2000.''.
(2) Cross references.--Sections 202, 203, and 204 of such
Act are amended by striking ``section 201(a)'' each place it
appears and inserting ``subsection (a) or (b) of section 201''.
(3) Heading.--The heading of section 201(a) is amended by
striking ``In General'' and inserting ``Pay-per-Call Services
Regulations''.
(4) Definition.--Section 204 of such Act is amended by
adding at the end the following new paragraph:
``(5) The term `dial-around services' has the meaning
provided in section 232(a) of the Communications Act of
1934.''.
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