CRAMMING NPRM FCC John B. Adams Policy Division Consumer and Governmental Affairs Bureau
Cramming NPRM; FCC ► Ex Parte Issues 47 C.F.R ► 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
Cramming NPRM; FCC ► Adopted and released July 12, 2011 ► Comment dates: Initial Comments:October 24, 2011 Reply Comments:November 21, 2011
Cramming NPRM; FCC ► Cramming: Placing unauthorized charges on telephone bill Usually third-party charge Can be carrier charge Often fraudulent
Cramming NPRM; FCC ► Amends Truth-in-Billing Rules 47 C.F.R – 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
Cramming NPRM; 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 customers unaware of third-party charges Questions: ► Formatting: apparent to reasonable consumer ► Fees ► Other
Cramming NPRM; FCC ► 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
Cramming NPRM; FCC ► 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
Cramming NPRM; FCC ► 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
Cramming NPRM; FCC ► 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
Cramming NPRM; FCC ► 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
Cramming NPRM; FCC ► 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)
Cramming NPRM; FCC ► 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
Cramming NPRM; FCC ► 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
Cramming NPRM; FCC ► Senate Commerce Committee website: ► Resources include: Committee Staff Report Press Releases Video of hearing
Cramming NPRM; FCC ► Questions