1. CRAMMING R&O FNPRM FCC 12-42 John B. Adams Consumer Policy Division Consumer and Governmental Affairs Bureau 202-418-2854johnb.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