§ 5711. — Federal Trade Commission regulations.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC5711]
TITLE 15--COMMERCE AND TRADE
CHAPTER 83--TELEPHONE DISCLOSURE AND DISPUTE RESOLUTION
SUBCHAPTER I--REGULATION OF UNFAIR AND DECEPTIVE ACTS AND PRACTICES IN
CONNECTION WITH PAY-PER-CALL SERVICES
Sec. 5711. Federal Trade Commission regulations
(a) In general
(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 pay-per-call services. Such rules shall
require that the person offering such pay-per-call services--
(A) clearly and conspicuously disclose in any advertising
the cost of the use of such telephone number, including the
total cost or the cost per minute and any other fees for that
service and for any other pay-per-call service to which the
caller may be transferred;
(B) in the case of an advertisement which offers a prize or
award or a service or product at no cost or for a reduced cost,
clearly and conspicuously disclose the odds of being able to
receive such prize, award, service, or product at no cost or
reduced cost, or, if such odds are not calculable in advance,
disclose the factors determining such odds;
(C) in the case of an advertisement that promotes a service
that is not operated or expressly authorized by a Federal agency
but that provides information on a Federal program, include at
the beginning of such advertisement a clear disclosure that the
service is not authorized, endorsed, or approved by any Federal
agency;
(D) shall not direct such advertisement at children under
the age of 12, unless such service is a bona fide educational
service;
(E) in the case of advertising directed primarily to
individuals under the age of 18, clearly and conspicuously state
in such advertising that such individual must have the consent
of such individual's parent or legal guardian for the use of
such services;
(F) be prohibited from using advertisements that emit
electronic tones which can automatically dial a pay-per-call
telephone number;
(G) ensure that, whenever the number to be called is shown
in television and print media advertisements, the charges for
the call are clear and conspicuous and (when shown in television
advertisements) displayed for the same duration as that number
is displayed;
(H) in delivering any telephone message soliciting calls to
a pay-per-call 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
pay-per-call service to which the caller may be transferred; and
(I) not advertise an 800 telephone number, or any other
telephone number advertised or widely understood to be toll
free, from which callers are connected to an access number for a
pay-per-call service.
(2) Pay-per-call service standards
The Commission shall prescribe rules to require that each
provider of pay-per-call services--
(A) include in each pay-per-call message an introductory
disclosure message that--
(i) describes the service being provided;
(ii) specifies clearly and at a reasonably
understandable volume the total cost or the cost per minute
and any other fees for that service and for any other pay-
per-call service to which the caller may be transferred;
(iii) informs the caller that charges for the call begin
at the end of the introductory message;
(iv) informs the caller that parental consent is
required for calls made by children; and
(v) in the case of a pay-per-call service that is not
operated or expressly authorized by a Federal agency but
that provides information on any Federal program, a
statement that clearly states that the service is not
authorized, endorsed, or approved by any Federal agency;
(B) enable the caller to hang up at or before the end of the
introductory message without incurring any charge whatsoever;
(C) not direct such services at children under the age of
12, unless such service is a bona fide educational service;
(D) stop the assessment of time-based charges immediately
upon disconnection by the caller;
(E) disable any bypass mechanism which allows frequent
callers to avoid listening to the disclosure message described
in subparagraph (A) after the institution of any price increase
and for a period of time sufficient to give such frequent
callers adequate and sufficient notice of the price change;
(F) be prohibited from providing pay-per-call services
through an 800 number or other telephone number advertised or
widely understood to be toll free;
(G) be prohibited from billing consumers in excess of the
amounts described in the introductory message and from billing
for services provided in violation of the rules prescribed by
the Commission pursuant to this section;
(H) ensure that any billing statement for such provider's
charges shall--
(i) display any charges for pay-per-call services in a
part of the consumer's bill that is identified as not being
related to local and long distance telephone charges; and
(ii) 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;
(I) be liable for refunds to consumers who have been billed
for pay-per-call services pursuant to programs that have been
found to have violated the regulations prescribed pursuant to
this section or subchapter II of this chapter or any other
Federal law; and
(J) comply with such additional standards as the Commission
may prescribe to prevent abusive practices.
(3) Access to information
The Commission shall by rule require a common carrier that
provides telephone services to a provider of pay-per-call 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 pay-per-call 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 subchapter, including through the use of alternative
billing or other procedures.
(5) Exemptions
The regulations prescribed by the Commission pursuant to
paragraph (2)(A) may exempt from the requirements of such
paragraph--
(A) calls from frequent callers or regular subscribers using
a bypass mechanism to avoid listening to the disclosure message
required by such regulations, subject to the requirements of
paragraph (2)(E); or
(B) pay-per-call services provided at nominal charges, as
defined by the Commission in such regulations.
(6) Consideration of other rules required
In conducting a proceeding under this section, the Commission
shall consider requiring, by rule or regulation, that providers of
pay-per-call services--
(A) automatically disconnect a call after one full cycle of
the program; and
(B) include a beep tone or other appropriate and clear
signal during a live interactive group program so that callers
will be alerted to the passage of time.
(7) Special rule for infrequent publications
The rules prescribed by the Commission under subparagraphs (A)
and (G) of paragraph (1) may permit, in the case of publications
that are widely distributed, that are printed annually or less
frequently, and that have an established policy of not publishing
specific prices, advertising that in lieu of the cost disclosures
required by such subparagraphs, clearly and conspicuously disclose
that use of the telephone number may result in a substantial charge.
(8) Treatment of rules
A rule issued under this subsection shall be treated as a rule
issued under section 57a(a)(1)(B) of this title.
(b) Rulemaking
The Commission shall prescribe the rules under subsection (a) of
this section within 270 days after October 28, 1992. Such rules shall be
prescribed in accordance with section 553 of title 5.
(c) Enforcement
Any violation of any rule prescribed under subsection (a) of this
section shall be treated as a violation of a rule respecting unfair or
deceptive acts or practices under section 45 of this title.
Notwithstanding section 45(a)(2) of this title, communications common
carriers shall be subject to the jurisdiction of the Commission for
purposes of this subchapter.
(Pub. L. 102-556, title II, Sec. 201, Oct. 28, 1992, 106 Stat. 4187.)
Section Referred to in Other Sections
This section is referred to in sections 5712, 5713, 5714 of this
title.
