PREVENTION OF UNFAIR BILLING PRACTICES FOR INFORMATION OR SERVICES PROVIDED OVER TOLL-FREE TELEPHONE CALLS.

SEC. 701. PREVENTION OF UNFAIR BILLING PRACTICES FOR INFORMATION OR SERVICES PROVIDED OVER TOLL-FREE TELEPHONE CALLS. (a) Prevention of Unfair Billing Practices.— (1) In general.— Section 228(c) (47 U.S.C. 228(c)) is amended— (A) by striking out subparagraph (C) of paragraph (7) and inserting in lieu thereof the following: “(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); or”; (B) (i) by striking “or” at the end of subparagraph (C) of such paragraph; (ii) by striking the period at the end of subparagraph (D) of such paragraph and inserting a semicolon and “or”; and (iii) by adding at the end thereof the following: “(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.”; and 110 STAT. 146 (C) by adding at the end the following new paragraphs: “(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. 110 STAT. 147 “(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 title V of this Act. “(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) Definition of calling card.— 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.”. (2) Regulations.— The Federal Communications Commission shall revise its regulations to comply with the amendment made by paragraph (1) not later than 180 days after the date of enactment of this Act. (3) Effective date.— The amendments made by paragraph (1) shall take effect on the date of enactment of this Act. (b) Clarification of “Pay-Per-Call Services”.— (1) Telephone disclosure and dispute resolution act.— Section 204(1) of the Telephone Disclosure and Dispute Resolution Act (15 U.S.C. 5714(1)) is amended to read as follows: 110 STAT. 148 “(1) The term ‘pay-per-call services’ has the meaning provided in section 228(i) of the Communications Act of 1934, except that the Commission by rule may, notwithstanding subparagraphs (B) and (C) of section 228(i)(l) of such Act, extend such definition to other similar services providing audio information or audio entertainment if the Commission determines that such services are susceptible to the unfair and deceptive practices that are prohibited by the rules prescribed pursuant to section 201(a).”. (2) Communications act.— Section 228(i)(2) (47 U.S.C. 228(i)(2)) is amended by striking “or any service the charge for which is tariffed,”.