Commerce of the House of Representatives, a report summarizing the recommendations made by the Panel under subsection (b).

(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Secretary of Commerce to carry out this section $1,000,000 to remain available until expended. SEC. 155. REPORT ON THE ROLE OF TELECOMMUNICATIONS IN HATE

CRIMES. (a) REQUIREMENT OF REPORT.-Within 240 days after the date of enactment of this Act, the NTIA, with the assistance of the Commission, the Department of Justice, and the United States Commission on Civil Rights, shall prepare a report on the role of telecommunications in crimes of hate and violent acts against ethnic, religious, and racial minorities and shall submit such report to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transpor- ! tation of the Senate.

(b) SCOPE OF REPORT.—The report required by subsection (a) shall

(1) analyze information on the use of telecommunications, including broadcast television and radio, cable television, public access television, computer bulletin boards, and other electronic media, to advocate and encourage violent acts and the commission of crimes of hate, as described in the Hate Crimes Statistics Act (28 U.S.C. 534), against ethnic, religious, and ra- EP cial minorities.

(2) include any recommendations deemed appropriate and necessary by the NTIA.

TELEPHONE DISCLOSURE AND DISPUTE RESOLUTION

ACT

TELEPHONE DISCLOSURE AND DISPUTE RESOLUTION

ACT

AN ACT To protect the public interest and the future development of pay-per-call

technology by providing for the regulation and oversight of the applications and growth of the pay-per-call industry, and for other purposes.

1

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE, FINDINGS.

(a) SHORT TITLE.—This Act may be cited as the “Telephone Disclosure and Dispute Resolution Act”. (b) FINDINGS.— The Congress finds the following:

(1) The use of pay-per-call services, most commonly through the use of 900 telephone numbers, has grown exponentially in the past few years into a national, billion-dollar industry as a result of recent technological innovations. Such services are convenient to consumers, cost-effective to vendors, and profitable to communications common carriers.

(2) Many pay-per-call businesses provide valuable information, increase consumer choices, and stimulate innovative and responsive services that benefit the public.

(3) The interstate nature of the pay-per-call industry means that its activities are beyond the reach of individual States and therefore requires Federal regulatory treatment to protect the public interest.

(4) The lack of nationally uniform regulatory guidelines has led to confusion for callers, subscribers, industry participants, and regulatory agencies as to the rights of callers and the oversight responsibilities of regulatory authorities, and has allowed some pay-per-call businesses to engage in practices that abuse the rights of consumers.

(5) Some interstate pay-per-call businesses have engaged in practices which are misleading to the consumer, harmful to the public interest, or contrary to accepted standards of business practices and thus cause harm to the many reputable businesses that are serving the public.

(6) Because the consumer most often incurs a financial obligation as soon as a pay-per-call transaction is completed, the accuracy and descriptiveness of vendor advertisements become crucial in avoiding consumer abuse. The obligation for accuracy should include price-per-call and duration-of-call information, odds disclosure for lotteries, games, and sweepstakes, and obligations for obtaining parental consent from callers under 18.

(7) The continued growth of the legitimate pay-per-call industry is dependent upon consumer confidence that unfair and

deceptive behavior will be effectively curtailed and that con-
sumers will have adequate rights of redress.

(8) Vendors of telephone-billed goods and services must
also feel confident in their rights and obligations for resolving
billing disputes if they are to use this new marketplace for the
sale of products of more than nominal value.

TITLE 1—CARRIER OBLIGATIONS AND

CONSUMER RIGHTS CONCERNING
PAY-PER-CALL TRANSACTIONS

SEC. 101. AMENDMENT TO COMMUNICATIONS ACT OF 1934.

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[Section 101 added a new section 228 to the Communications

shop Act of 1934.]

char SEC. 102. TECHNICAL AMENDMENT.

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dura Section 102 contained a technical amendment to the effective date provisions of the Telephone Consumer Protection Act of 1991 (which was an amendment to section 227 of the Communications thar Act of 1934).)

and TITLE II-REGULATION OF UNFAIR AND may

DECEPTIVE ACTS AND PRACTICES IN CONNECTION WITH PAY-PER-CALL bet SERVICES

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SEC. 201. 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

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