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U.S. Code as of:
01/19/04
Section 5701. Short title; findings
(a) Short title
This chapter 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
consumers 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.
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