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CRAMMING NPRM FCC 11-106

CRAMMING NPRM FCC 11-106. John B. Adams Policy Division Consumer and Governmental Affairs Bureau 202-418-2854. Cramming NPRM; FCC 11-106. Ex Parte Issues 47 C.F.R. 1.1206 Anything substantive must be summarized in writing filed within 2 days

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CRAMMING NPRM FCC 11-106

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  1. CRAMMING NPRMFCC 11-106 John B. Adams Policy Division Consumer and Governmental Affairs Bureau 202-418-2854

  2. Cramming NPRM; FCC 11-106 • Ex Parte Issues • 47 C.F.R. 1.1206 • Anything substantive must be summarized in writing filed within 2 days • Summary must list each and every person participating in meeting • Strongly encourage everyone to save substantive remarks for comments • Feel free to ask questions about NPRM

  3. Cramming NPRM; FCC 11-106 • Adopted and released July 12, 2011 • Comment dates: • Initial Comments: October 24, 2011 • Reply Comments: November 21, 2011

  4. Cramming NPRM; FCC 11-106 • Cramming: • Placing unauthorized charges on telephone bill • Usually third-party charge • Can be carrier charge • Often fraudulent

  5. Cramming NPRM; FCC 11-106 • Amends Truth-in-Billing Rules • 47 C.F.R. 64.2400 – 64.2401 • Proposed Rules • 3 proposed requirements for wireline carriers • 1 proposed requirement for CMRS carriers • Reflects complaint numbers (82% wireline; 16% CMRS) • Other issues for comment

  6. Cramming NPRM; FCC 11-106 • 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 customers unaware of third-party charges • Questions: • Formatting: apparent to reasonable consumer • Fees • Other

  7. Cramming NPRM; FCC 11-106 • Wireline: place third-party charges in distinct section of bill, separate from carrier charges • TIB rules: separate by carrier • Questions: • Separate listing of third-party charges on page 1 • Other ways highlight third-party charges • Additional description of biller

  8. Cramming NPRM; FCC 11-106 • Wireline and CMRS • notify customers that complaints can be filed with FCC • provide FCC complaint contact info (telephone number and website address ) on bills and carrier websites • websites include link to FCC’s webpage for filing complaints • GAO report: consumers not know where to complain

  9. Cramming NPRM; FCC 11-106 • Other issues for comment • Apply same rules to wireline, CMRS, interconnected VOIP a/k/a Internet phone • Disclose contact info for third parties • Require wireline to block third-party charges upon customer request • Wireline disclose if do not offer blocking of third-party charges

  10. Cramming NPRM; FCC 11-106 • Other issues for comment • Prohibit all third-party charges on wireline bills • Screen third-parties for prior violations of state and federal law before agree to bill for them • Improve federal-state coordination • Information sharing • State enforcement and legislation • New and updated info about extent of cramming

  11. Cramming NPRM; FCC 11-106 • Other issues for comment • Define “service” or “service provider” in TIB rules or use different term • TIB rules refer to charges from “service provider” • Loophole? • Request specific rule language • Accessibility

  12. Cramming NPRM; FCC 11-106 • Senate Commerce Committee • Hearing on July 13, 2011 • Chairman Rockefeller stated intent to introduce bill to prohibit third-party charges • Questions raised about efficacy of existing voluntary industry guidelines versus state prohibitions • Industry argued in favor of self-policing, but admitted cramming still a problem • Attorneys General argued for regulation (ban preferred)

  13. Cramming NPRM; FCC 11-106 • Senate Commerce Committee Staff Report • Key Findings (per Press Release 7/12/11) • Third-party billing is billion dollar industry • Most third-party charges appear fraudulent • Telephone companies profit from cramming • Cramming affects entire wireline customer base • Many third-party vendors are illegitimate and created solely to exploit third-party billing

  14. Cramming NPRM; FCC 11-106 • Senate Commerce Committee Staff Report • Key Findings (per Press Release 7/12/11) • Telephone companies are aware that cramming is major problem on their bills • Telephone customers reported negative experiences with seeking assistance from telephone companies • Industry anti-cramming efforts largely failed

  15. Cramming NPRM; FCC 11-106 • Senate Commerce Committee website: http://commerce.senate.gov/public/ • Resources include: • Committee Staff Report • Press Releases • Video of hearing

  16. Cramming NPRM; FCC 11-106 • Questions

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