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CRAMMING R&O FNPRM FCC 12-42

CRAMMING R&O FNPRM FCC 12-42. John B. Adams Consumer Policy Division Consumer and Governmental Affairs Bureau 202-418-2854 johnb.adams@fcc.gov. Cramming R&O FNPRM; FCC 12-42. Adopted and released April 27, 2012 Effective dates of rules:

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CRAMMING R&O FNPRM FCC 12-42

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  1. CRAMMING R&O FNPRMFCC 12-42 John B. Adams Consumer Policy Division Consumer and Governmental Affairs Bureau 202-418-2854 johnb.adams@fcc.gov

  2. Cramming R&O FNPRM; FCC 12-42 • Adopted and released April 27, 2012 • Effective dates of rules: • Billing system changes: 60 days after notice of OMB approval • Other: 15 days after notice of OMB approval • Comment dates: • Initial Comments: 30 days after Federal Register • Reply Comments: 45 days after Federal Register • Ex Parte rules apply to FNPRM

  3. Cramming R&O FNPRM; FCC 12-42 • Cramming: • Placing unauthorized charges on telephone bill • Usually third-party charge • Can be carrier charge • Often fraudulent • More information: • Senate Commerce Committee majority staff report • FTC v. Inc21.com

  4. Cramming R&O FNPRM; FCC 12-42 • Cramming Problem • Wireline: significant percentage of third-party charges are unauthorized • CMRS: smaller, but growing problem • 16% in 2008-2010 • 30% in 2011

  5. Cramming R&O FNPRM; FCC 12-42 • Amends Truth-in-Billing Rules • 47 C.F.R. 64.2400 – 64.2401 • Adopted 2 of 3 Proposed Rules • No action re “other” questions

  6. Cramming R&O FNPRM; FCC 12-42 • Wireline: if offer customers ability to block third-party charges, must inform customers on bill, on website, at point of sale • Many wireline carriers already offer, but not inform customers until crammed • Many subscribers unaware of third-party charges • Helps subscribers by keeping third-party charges off bill before third-party cramming can occur

  7. Cramming R&O FNPRM; FCC 12-42 • Wireline: place third-party charges in distinct section of bill, separate from carrier charges, and provide separate subtotal • Enhances requirement to separate charges by provider • Subtotal requirement: • paper bill: payment page • electronic bill: equivalent location and anywhere bill total shown on bill transmittal, payment portal, etc. before subscriber sees bill

  8. Cramming R&O FNPRM; FCC 12-42 • Not adopt requirement for carriers to place FCC contact info on bills and websites • Record opposition • Lack of significant benefit to subscribers

  9. Cramming R&O FNPRM; FCC 12-42 • FNPRM seeks comment: • Additional measures for wireline • Opt-in: carrier obtain prior subscriber approval to place third-party charges on bill • Structure and mechanics of opt-in • Additional measures for CMRS and interconnected VOIP a/k/a Internet phone

  10. Cramming R&O FNPRM; FCC 12-42 • Questions

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