[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR308.5]

[Page 347-349]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 308_TRADE REGULATION RULE PURSUANT TO THE TELEPHONE DISCLOSURE 
AND DISPUTE RESOLUTION ACT OF 1992--Table of Contents
 
Sec. 308.5  Pay-per-call service standards.

    (a) Preamble message. The provider of pay-per-call services shall 
include, in each pay-per-call message, an introductory disclosure 
message (``preamble'') in the same language as that principally used in 
the pay-per-call message, that clearly, in a slow and deliberate manner 
and in a reasonably understandable volume:
    (1) Identifies the name of the provider of the pay-per-call service 
and describes the service being provided;
    (2) Specifies the cost of the service as follows:
    (i) If there is a flat fee for the call, the preamble shall state 
the total cost of the call;
    (ii) If the call is billed on a time-sensitive basis, the preamble 
shall state the cost per minute and any minimum charges; if the length 
of the program can be determined in advance, the preamble shall also 
state the maximum charge that could be incurred if the caller listens to 
the complete program;
    (iii) If the call is billed on a variable rate basis, the preamble 
shall state, in accordance with Sec. Sec. 308.5(a)(2) (i) and (ii), the 
cost of the initial portion of the call, any minimum charges, and the 
range of rates that may be charged depending on the options chosen by 
the caller;
    (iv) Any other fees that will be charged for the service shall be 
disclosed, as well as fees for any other pay-per-call service to which 
the caller may be transferred;
    (3) Informs the caller that charges for the call begin, and that to 
avoid charges the call must be terminated, three seconds after a clearly 
discernible signal or tone indicating the end of the preamble;
    (4) Informs the caller that anyone under the age of 18 must have the 
permission of parent or legal guardian in order to complete the call; 
and
    (5) Informs the caller, in the case of a pay-per-call service that 
is not operated or expressly authorized by a Federal agency but that 
provides information on a Federal program, or that uses a trade or brand 
name or any other term that reasonably could be interpreted or construed 
as implying any Federal government connection, approval or endorsement, 
that the pay-per-call service is not authorized, endorsed, or approved 
by any Federal agency.
    (b) No charge to caller for preamble message. The provider of pay-
per-call services is prohibited from charging a caller any amount 
whatsoever for such a service if the caller hangs up at any time prior 
to three seconds after the signal or tone indicating the end of the 
preamble described in Sec. 308.5(a). However, the three-second delay, 
and the

[[Page 348]]

message concerning such delay described in Sec. 308.5(a)(3), is not 
required if the provider of pay-per-call services offers the caller an 
affirmative means (such as pressing a key on a telephone keypad) of 
indicating a decision to incur the charges.
    (c) Nominal cost calls. The preamble described in Sec. 308.5(a) is 
not required when the entire cost of the pay-per-call service, whether 
billed as a flat rate or on a time sensitive basis, is $2.00 or less.
    (d) Data service calls. The preamble described in Sec. 308.5(a) is 
not required when the entire call consists of the non-verbal 
transmission of information.
    (e) Bypass mechanism. The provider of pay-per-call services that 
offers to frequent callers or regular subscribers to such services the 
option of activating a bypass mechanism to avoid listening to the 
preamble during subsequent calls shall not be deemed to be in violation 
of Sec. 308.5(a), provided that any such bypass mechanism shall be 
disabled for a period of no less than 30 days immediately after the 
institution of an increase in the price for the service or a change in 
the nature of the service offered.
    (f) Billing limitations. The provider of pay-per-call services is 
prohibited from billing consumers in excess of the amount described in 
the preamble for those services and from billing for any services 
provided in violation of any section of this rule.
    (g) Stopping the assessment of time-based charges. The provider of 
pay-per-call services shall stop the assessment of time-based charges 
immediately upon disconnection by the caller.
    (h) Prohibition on services to children. The provider of pay-per-
call services shall not direct such services to children under the age 
of 12, unless such service is a bona fide educational service. The 
Commission shall consider the following criteria in determining whether 
a pay-per-call service is directed to children under 12:
    (1) Whether the pay-per-call service is advertised in the manner set 
forth in Sec. Sec. 308.3(e) (2) and (3); and
    (2) Whether the pay-per-call service, regardless of when or where it 
is advertised, is directed to children under 12, in light of its subject 
matter, content, language, featured personality, characters, tone, 
message, or the like.
    (i) Prohibition concerning toll-free numbers. Any person is 
prohibited from using an 800 number or other telephone number advertised 
as or widely understood to be toll-free in a manner that would result 
in:
    (1) The calling party being assessed, by virtue of completing the 
call, a charge for the call;
    (2) The calling party being connected to an access number for, or 
otherwise transferred to, a pay-per-call service;
    (3) The calling party being charged for information conveyed during 
the call unless the calling party has a presubscription or comparable 
arrangement to be charged for the information; or
    (4) The calling party being called back collect for the provision of 
audio or data information services, simultaneous voice conversation 
services, or products.
    (j) Disclosure requirements for billing statements. The provider of 
pay-per-call services shall ensure that any billing statement for such 
provider's charges shall:
    (1) Display any charges for pay-per-call services in a portion of 
the consumer's bill that is identified as not being related to local and 
long distance telephone charges;
    (2) For each charge so displayed, specify the type of service, the 
amount of the charge, and the date, time, and, for calls billed on a 
time-sensitive basis, the duration of the call; and
    (3) Display the local or toll-free telephone number where consumers 
can obtain answers to their questions and information on their rights 
and obligations with regard to their use of pay-per-call services, and 
can obtain the name and mailing address of the provider of pay-per-call 
services.
    (k) Refunds to consumers. The provider of pay-per-call services 
shall be liable for refunds or credits to consumers who have been billed 
for pay-per-call services, and who have paid the charges for such 
services, pursuant to pay-per-call programs that have been found to have 
violated any provision of this rule or any other Federal rule or law.

[[Page 349]]

    (l) Service bureau liability. A service bureau shall be liable for 
violations of the rule by pay-per-call services using its call 
processing facilities where it knew or should have known of the 
violation.