View Rule

View EO 12866 Meetings

Printer-Friendly Version Download RIN Data in XML

FTC

RIN: 3084-AA78

Publication ID: Fall 2008

Title: Trade Regulation Rule Pursuant to the Telephone Disclosure and Dispute Resolution Act of 1992
Abstract: Congress enacted the Telephone Disclosure and Dispute Resolution Act of 1992 (TDDRA) to curtail certain unfair and deceptive practices perpetrated by some pay-per-call businesses and to encourage the growth of the legitimate pay-per-call industry. TDDRA mandated that the FTC promulgate a rule to curb these practices; the Pay-Per-Call or 900-Number Rule became effective on November 1, 1993 (58 FR 44769; Aug. 25, 1993) (parts of rule became effective September 24, 1993). TDDRA granted the Commission limited jurisdiction over common carriers for purposes of the rule. The rule requires that advertisements for 900-numbers contain certain disclosures and that anyone who calls a 900-number service be given the opportunity to hang up at the conclusion of the preamble without incurring any charge for the call. It also establishes procedures for resolving billing disputes for 900-number calls and other telephone-billed purchases. The rule itself required the Commission to initiate a review of the rule prior to November 1997. As part of this review, the Commission published a notice in the Federal Register on March 12, 1997, requesting comments on, among other things, the economic impact of and the continuing need for the rule, and the effect on the rule of any technological or industry changes (62 FR 11750). The Commission also sought comments, pursuant to authority granted under the Telecommunications Act of 1996, on whether to expand the rule to govern other similar audio information and entertainment services. Staff held a public workshop on June 19 to 20, 1997, during which members of the industry discussed issues raised in the comments, including billing and collection issues and possible ways to expand the definition of "pay-per-call services." Many commenters reported that the rule has been successful in reducing the abuses that led to the passage of TDDRA. Despite the success of the rule in correcting the abuses in the 900-number industry, complaints about other types of audiotext services (accessed via dialing patterns other than 900 numbers) are being reported. The majority of complaints now involve 800 numbers, international numbers, or other dialing patterns that do not use the 900-number prefix. Many consumer and law enforcement agencies also have received complaints from consumers who have discovered unexplained charges (in some cases, recurring charges) on their telephone bills for services that were never authorized, ordered, received, or used, a practice known as "cramming." On October 30, 1998, the Commission published an NPRM that would expand the definition of "pay-per-call" services beyond 900 numbers and that would implement measures to combat telephone bill cramming (63 FR 58524). The proposed revisions would: (1) Require the express authorization of the person to be billed for the purchase of any "telephone-billed purchases" that cannot be blocked by 900-number blocking; (2) prohibit vendors from billing consumers for monthly or other recurring charges for pay-per-call services unless the vendor had entered into a "presubscription agreement" with the person to be billed and had sent the consumer a written copy of the agreement; and (3) give consumers legal recourse to dispute unauthorized charges crammed on phone bills and have those charges removed. The comment period was extended to March 10, 1999 (64 FR 61; Jan. 4, 1999), and a workshop-conference was held on May 20 to 21, 1999. At the workshop, participants discussed issues raised by the comments, such as the meaning of "express authorization" and the requirements for a presubscription agreement. Staff plans to forward a recommendation to the Commission by the end of 2009.
Agency: Federal Trade Commission(FTC)	Priority: Substantive, Nonsignificant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Long-Term Actions
Major: No	Unfunded Mandates: No
CFR Citation: 16 CFR 308
Legal Authority: 15 USC 5701 et seq

Legal Deadline: None

Timetable:

Action	Date	FR Cite
Request for Comments	03/12/1997	62 FR 11750
Comment Period End	05/12/1997
Public Workshop	06/19/1997
Public Workshop	06/20/1997
NPRM	10/30/1998	63 FR 58524
Comment Period Extended	01/04/1999	64 FR 61
Comment Period End	01/08/1999
Public Workshop-Conference	02/25/1999
Extended Comment Period End	03/10/1999
Public Workshop	05/20/1999
Public Workshop	05/21/1999
Recommendation to Commission	12/00/2009

Regulatory Flexibility Analysis Required: No	Government Levels Affected: None
Small Entities Affected: Businesses	Federalism: No
Included in the Regulatory Plan: No
RIN Data Printed in the FR: No
Agency Contact: Frank M. Gorman Attorney Federal Trade Commission Bureau of Consumer Protection, 600 Pennsylvania Avenue NW, Washington, DC 20580 Phone:202 326-2156 Email: fgorman@ftc.gov