NEWSReport No. DC 96-64 ACTION IN DOCKET CASE July 11, 1996 COMMISSION ADOPTS MEASURES TO PROTECT CONSUMERS FROM DECEPTIVE TOLL-FREE CALL PRACTICES; Implements 1996 Telecom Act Provisions Governing Interstate Pay-Per-Call and Other Information Services (CC Docket No. 96-146; CC Docket No. 93-22) The Commission today released an Order that will protect consumers from unknowingly being charged for calls made to toll-free numbers. In the past, the Commission has received thousands of complaints from consumers, businesses, and organizations alleging that they have been billed for calls made from their phones to toll-free numbers. The new rules implement provisions of the 1996 Telecommunications Act and conform FCC regulations to the more stringent statutory provisions governing toll-free service, interstate pay-per-call, and other information services. Following the statutory mandate, the new rules prohibit charging callers to toll-free numbers for provision of information services unless the caller has agreed in writing to be charged, or paid for the service through direct remittance, prepaid account, or debit, credit, or calling card. In addition, as required by the 1996 Act, the new rules redefine the statutory term "pay-per-call service" by removing the exemption accorded to any service offered pursuant to tariff. This action will ensure that telephone subscribers are not charged high prices for transmission of calls to ostensibly "free" information services. Pay-per-call services, commonly known as "900 services," offer telephone callers a variety of recorded and interactive information and entertainment programs that carry charges greater than, or in addition to, the charge for transmitting the call. The Commission's rules require that all interstate pay-per-call service be provided through 900 numbers. The larger category of information services encompasses not only pay-per-call services but, also, information and entertainment programs available through other dialing sequences. The Commission also released a Notice of Proposed Rulemaking (NPRM) that proposes additional minor modifications to maximize consumers' protection from confusing or deceptive practices related to the provision of interstate information services. In the NPRM, the Commission sought comment on proposed rule changes that are intended to prevent evasions of the new statutory requirements. The Commission noted that past evasions by information providers and common carriers have resulted in widespread deception and deprived consumers of protections that Congress and the Commission have determined are necessary to ensure that consumers are able to make informed choices about purchasing interstate pay-per-call and information services. To discourage future abuse, the Commission proposed that all presubscription arrangements to purchase interstate information services (not just those involving toll-free service) be executed in writing or, alternatively, through payment by direct remittance, prepaid account, or debit, credit, charge, or calling card. In addition, the Commission proposed to require that only a pre-existing credit, charge, or calling card may be used to obtain information services and that an actual card must have been delivered to the party to be billed prior to assessment of any charges. The Commission stated that, between 1993 and June 1996, it received over 10,000 complaints from consumers about being billed for calls to information services purportedly provided under a presubscription or comparable agreement, generally available over an 800 number, or pursuant to a "tariffed-services" arrangement. These information services may have been provided over a variety of dialing arrangements, including 800 or international numbers. Action by the Commission June 28, 1996, by Order and Notice of Proposed Rulemaking (FCC 96-289). Chairman Hundt, Commissioners Quello, Ness and Chong. -FCC- News Media contact: Mindy J. Ginsburg at (202) 418-1500. Common Carrier Bureau contact: Mary Romano at (202) 418-0960.