Report No. DC-2631 ACTION IN DOCKET CASE August 2, 1994 FURTHER CONSUMER SAFEGUARDS ON 800 NUMBERS PROPOSED; PAY-PER-CALL RULES UPHELD, CLARIFIED (CC DOCKET 93-22) In response to increasing numbers of complaints from telephone customers who contend that they are being charged by information service providers (IPs) for calls they didn't make or thought were free, the Commission has proposed strengthening its regulations to help ensure that consumers are billed only for information services that they want and have agreed to pay for. The Commission's existing rules concerning the use of 800 numbers for pay-per-call information services implement the provisions of the 1992 Telephone Disclosure and Dispute Resolution Act (TDDRA). The TDDRA, which governs the provision of interstate pay-per-call and related services, envisions that 900 numbers are to be the predominant means of providing access to interstate information services but allows 800 numbers to be used to provide information services in certain limited circumstances. Under the TDDRA and the Commission's rules, it is generally unlawful to charge a caller to an 800 number for information services unless the caller has first asked to receive the service through a "presubscription" or comparable arrangement. A presubscription arrangement is a contractual agreement in which the consumer is informed of the terms under which an information service is being offered and agrees to accept the service on those terms. Under existing regulations, a presubscription arrangement need not be executed in writing. Complaints filed with the Commission indicate that many telephone subscribers may have been charged for calls to 800 numbers even though a valid presubscription arrangement was not established. Complaints also indicate that some callers may have been connected to an information service without being told that they would be charged or what the rate would be for the 800 number information service. (over) - 2 - The Commission indicated that a valid presubscription agreement does not exist when the information service provider bills the subscriber to the originating telephone line by reading the Automatic Number Identification information, without obtaining agreement from the individual who is both the subscriber of the originating telephone line and is legally competent to enter into the contractual agreement. To ensure that abusive practices do not occur, the Commission has proposed prohibiting the use of 800 numbers to connect callers to any information service that is not provided under a presubscription or comparable arrangement. It also proposed to require that presubscription arrangements be established in writing and that common carriers obtain evidence of the written agreement before issuing a telephone bill that contains charges for presubscribed information services. Under the proposed rules, these telephone bills could be addressed only to the individual who actually entered into the presubscription arrangement, not to the person or company whose telephone was used to place the call. The Commission also proposed to state in the rules that a presubscription agreement may be established only with a legally competent individual. Finally, the Commission would require carriers performing billing services for IPs to separate charges for presubscribed information services from charges for other telecommunications services and to display for each information service charge: (1) the type of service and the service provider's name and business telephone number; (2) the telephone number actually called; (3) the amount of the charge; (4) the date and time of the call, and (5) for calls billed on a time-sensitive basis, the duration of the call. The Commission stated that while these proposals would impose some new burdens on both common carriers and IPs, whether or not they have engaged in abuses involving 800 number information services, these burdens are outweighed by the need to protect subscribers from bills for services they neither sought nor received. The Commission additionally noted the need to ensure that consumers who choose to use information services are fully informed of the cost of those services and to maintain the widespread public perception that 800 numbers are toll free. In response to several petitions, for reconsideration of the Commission's pay-per-call rules, the Commission has: -- Amended its rules to clarify that those interstate information services specifically exempted from pay-per-call status need not be offered exclusively on 900 numbers; - 3 - -- Declined to reconsider the requirement that local exchange carriers file federal tariffs for their services that block subscriber access to 900 numbers; and -- Declined to reconsider the requirement that any charges for collect or presubscribed information services included on a telephone bill must be separated from charges for telecommunications services, to the extent possible. Action by the Commission August 2, 1994, by Order on Reconsideration and Further Notice of Proposed Rulemaking (FCC 94-200). Chairman Hundt, Commissioners Quello, Barrett, Ness and Chong. - FCC - News Media contact: Susan Lewis Sallet at (202) 418-0500. Common Carrier Bureau contacts: Robert Spangler at (202) 632-4890 and Mary Romano at (202) 632-4887.