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CRAMMING R&O FNPRM FCC 12-42 John B. Adams Consumer Policy Division Consumer and Governmental Affairs Bureau

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Presentation on theme: "CRAMMING R&O FNPRM FCC 12-42 John B. Adams Consumer Policy Division Consumer and Governmental Affairs Bureau"— Presentation transcript:

1 CRAMMING R&O FNPRM FCC John B. Adams Consumer Policy Division Consumer and Governmental Affairs Bureau

2 Cramming R&O FNPRM; FCC ► 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 ► 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 ► Cramming Problem  Wireline: significant percentage of third-party charges are unauthorized  CMRS: smaller, but growing problem ► 16% in ► 30% in 2011

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

6 Cramming R&O FNPRM; FCC ► 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 ► 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 ► 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 ► 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 ► Questions


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