Legislation Would Protect Consumers From Fraud; Next Vote To Be In Full Committee

Washington, DC--Congressman Eliot Engel’s legislation to protect buyers of telephone calling cards from unscrupulous companies, particularly those who deliver fewer minutes than promised, passed unanimously in the House Energy and Commerce Committee’s Subcommittee on Commerce, Trade and Consumer Protection.

The Calling Card Consumer Protection Act (H.R. 3993), would protect users of telephone calling cards, who studies show, often get only 60 percent of the minutes advertised on the calling cards they purchase.

“I am very pleased to see the subcommittee recommend this important bill for review by the full Energy and Commerce Committee. Calling cards are an invaluable resource for people without long distance telephone, or those who make frequent overseas calls. Students, military, those with family abroad, and others who cannot afford long distance service can save a great deal of money with the cards,” said Rep. Engel, a senior member of the House Energy & Commerce committee.

“However, these calling cards can also lead to unsavory business practices when companies fail to keep their advertised terms, as I learned after hearing complaints from a number of constituents whose cards did not provide the number of minutes advertised. Calling card fraud harms those who are among the most vulnerable; poor, minority, and immigrant populations as well as our military serving overseas,” added the 11-term Congressman.

H.R. 3993 would do the following:

• Outlaw advertising for a certain number of minutes on a prepaid card, and failing to provide them.
• Disclose all terms and conditions clearly labeled on the card, packaging and advertising, and, if necessary, also in the language the card is advertised in.
• Require vendors to place signs next to the card display clearly marking surcharges, terms and conditions.

A companion bill (S.562) is sponsored in the Senate by Senator Bill Nelson (D-FL).