Trade Regulation Rule Pursuant to the Telephone Disclosure and Dispute Resolution Act of 1992
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Issuing agencies
Abstract
On March 12, 1997, the Federal Trade Commission initiated a review of the effectiveness of its Pay-Per-Call Rule. The Commission sought comment on whether to expand the scope of this rule to cover audio information and entertainment services accessed by dialing telephone numbers that begin with numbers other than "900." After receiving a small number of comments in favor of this approach, the Commission published a notice of proposed rulemaking to revise this rule on October 30, 1998. While comments received during this review were supportive, technological changes have muted the impact of the proposed revisions and the Commission is withdrawing this proposed rulemaking.
Full Text
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<title>Federal Register, Volume 88 Issue 144 (Friday, July 28, 2023)</title>
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[Federal Register Volume 88, Number 144 (Friday, July 28, 2023)]
[Proposed Rules]
[Page 48771]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-15998]
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FEDERAL TRADE COMMISSION
16 CFR Part 308
RIN 3084-AA78
Trade Regulation Rule Pursuant to the Telephone Disclosure and
Dispute Resolution Act of 1992
AGENCY: Federal Trade Commission.
ACTION: Proposed rule; withdrawal.
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SUMMARY: On March 12, 1997, the Federal Trade Commission initiated a
review of the effectiveness of its Pay-Per-Call Rule. The Commission
sought comment on whether to expand the scope of this rule to cover
audio information and entertainment services accessed by dialing
telephone numbers that begin with numbers other than ``900.'' After
receiving a small number of comments in favor of this approach, the
Commission published a notice of proposed rulemaking to revise this
rule on October 30, 1998. While comments received during this review
were supportive, technological changes have muted the impact of the
proposed revisions and the Commission is withdrawing this proposed
rulemaking.
DATES: The proposed rule documents published on March 12, 1997 (62 FR
11750), October 30, 1998 (63 FR 58523), and January 4, 1999 (64 FR 61)
are withdrawn as of July 28, 2023.
FOR FURTHER INFORMATION CONTACT: Frances Kern (202-326-2391),
Attorney, Division of Marketing Practices, Bureau of Consumer
Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW,
Washington, DC 20580.
SUPPLEMENTARY INFORMATION: On March 12, 1997, the Federal Trade
Commission (``Commission'') published a document in the Federal
Register initiating a review of the effectiveness of the Pay-Per-Call
Rule. 62 FR 11750. Among other things, the Pay-Per-Call Rule requires
disclosures about the cost of telephone-based entertainment or
information services that consumers access by dialing a 900 number and
mandates that consumers be given the opportunity to hang up the phone
before being charged. See 16 CFR 308.1 through 308.8. The Commission
also sought comment on whether to expand the scope of the rule to cover
audio information and entertainment services accessed by dialing
telephone numbers that begin with numbers other than ``900''.
After receiving a small number of comments in favor of this
approach, the Commission published a notice of proposed rulemaking
(``NPRM'') to amend the rule on October 30, 1998. 63 FR 58523.
Following two additional rounds of public comment and a two-day public
workshop on the proposed changes, support to amend the Pay-Per-Call
Rule proved limited.\1\ Additionally, technological changes have muted
the impact of the proposed amendments. Not only did the use of 900
numbers decline precipitously after issuance of the NPRM,\2\ ultimately
resulting in the major U.S. telecommunications providers of 900-number
services discontinuing those services,\3\ but such reduction in use
likewise diminished the necessity of Commission enforcement of the
Rule. The Commission last brought an action under the rule in 2003.\4\
Accordingly, the review of the Pay-Per-Call Rule begun on March 12,
1997, is terminated, and the Commission withdraws this proposed
rulemaking.
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\1\ On January 4, 1999, the Commission extended the comment
period and announced changes to the dates of the public workshops
held as a part of this rulemaking review. 64 FR 61.
\2\ Indeed, the services previously offered through 900 numbers
for a fee often came to be found for free on the internet. See
Steven Melendez, How Dialing 1-900 in the `90s Foreshadowed the
Internet, FAST COMPANY, Nov. 23, 2015, <a href="https://www.fastcompany.com/3053732/how-dialing-1-900-in-the-90s-foreshadowed-the-internet">https://www.fastcompany.com/3053732/how-dialing-1-900-in-the-90s-foreshadowed-the-internet</a>.
\3\ AT&T, Sprint, and Verizon/MCI stopped providing 900-number
services in 2004, 2008, and 2013, respectively. See Federal
Communications Commission, Comments Invited on Application of MCI
Communications Services, Inc. d/b/a Verizon Business Services to
Discontinue Domestic Telecommunications Services, WC Docket No. 13-
139, DA 13-1256 (May 30, 2013); Federal Communications Commission,
Order, In re Section 63.71 Application of Sprint Communications
Company L.P. for Authority to Discontinue Domestic
Telecommunications Services, WC Docket No. 08-116, DA 08-2557 (Nov.
24, 2008); Federal Communications Commission, Memorandum Opinion and
Order, In re AT&T Communications' Application to Discontinue
Domestic Telecommunications Services, Comp. Pol. File No. 645, DA
03-3743 (Nov. 21, 2003).
\4\ Federal Trade Commission v. Alyon Technologies, Inc., ECF
No. 1, No. 03-cv-1297 (N.D. Ga. May 13, 2003). The Department of
Justice, acting on referral from the Commission, last brought a
claim under the Rule in 2004. See U.S. v. Telemarketing, Inc., ECF
No. 1, No. 04-cv-1083 (N.D. Cal. Mar. 18, 2004).
By direction of the Commission.
April J. Tabor,
Secretary.
[FR Doc. 2023-15998 Filed 7-27-23; 8:45 am]
BILLING CODE 6750-01-P
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