article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Phone Bill Fairness Act''. SEC. 2. FINDINGS; PURPOSE. (a) Findings.--Congress makes the following findings: (1) Customer bills for telecommunications services are unreasonably complicated, and many Americans are unable to understand the nature of services provided to them and the charges for which they are responsible. (2) One of the purposes of the Telecommunications Act of 1996 (Public Law 104-104) was to unleash competitive and market forces for telecommunications services. (3) Unless customers can understand their telecommunications bills they cannot take advantage of the newly competitive market for telecommunications services. (4) Confusing telecommunications bills allow a small minority of providers of telecommunications services to commit fraud more easily. The best defense against telecommunications fraud is a well informed consumer. Consumers cannot be well informed when their telecommunications bills are incomprehensible. (5) Certain providers of telecommunications services have established new, specific charges on customer bills commonly known as ``line-item charges''. (6) These line-item charges have proliferated and are often described with inaccurate and confusing names. (7) These line-item charges have generated significant confusion among customers regarding the nature and scope of universal service and of the fees associated with universal service. (8) The National Association of Regulatory Utility Commissioners adopted a resolution in February 1998 supporting action by the Federal Communications Commission to require interstate telecommunications carriers to provide accurate customer notice regarding the implementation and purpose of end-user charges for telecommunications services. (b) Purpose.--It is the purpose of this Act to require the Federal Communications Commission and the Federal Trade Commission to protect and empower consumers of telecommunications services by assuring that telecommunications bills, including line-item charges, issued by telecommunications carriers nationwide are both accurate and comprehensible. SEC. 3. INVESTIGATION OF TELECOMMUNICATIONS CARRIER BILLING PRACTICES. (a) Investigation.-- (1) Requirement.--The Federal Communications Commission and the Federal Trade Commission shall jointly conduct an investigation of the billing practices of telecommunications carriers. (2) Purpose.--The purpose of the investigation is to determine whether the bills sent by telecommunications carriers to their customers accurately assess and correctly characterize the services received and fees charged for such services, including any fees imposed as line-item charges. (b) Determinations.--In carrying out the investigation under subsection (a), the Federal Communications Commission and the Federal Trade Commission shall determine the following: (1) The prevalence of incomprehensible or confusing telecommunications bills. (2) The most frequent causes for confusion on telecommunications bills. (3) Whether or not any best practices exist, which, if utilized as an industry standard, would reduce confusion and improve comprehension of telecommunications bills. (4) Whether or not telecommunications bills that impose fees through line-item charges characterize correctly the nature and basis of such fees, including, in particular, whether or not such fees are required by the Federal Government or State governments. (c) Review of Records.-- (1) Authority.--For purposes of the investigation under subsection (a), the Federal Communications Commission and the Federal Trade Commission may obtain from any telecommunications carrier any record of such carrier that is relevant to the investigation, including any record supporting such carrier's basis for setting fee levels or percentages. (2) Use.--The Federal Communications Commission and the Federal Trade Commission may use records obtained under this subsection only for purposes of the investigation. (d) Disciplinary Actions.-- (1) In general.--If the Federal Communications Commission or the Federal Trade Commission determines as a result of the investigation under subsection (a) that the bills sent by a telecommunications carrier to its customers do not accurately assess or correctly characterize any service or fee contained in such bills, the Federal Communications Commission or the Federal Trade Commission, as the case may be, may take such action against such carrier as such Commission is authorized to take under law. (2) Characterization of fees.--If the Federal Communications Commission or the Federal Trade Commission determines as a result of the investigation under subsection (a) that a telecommunications carrier has characterized a fee on bills sent to its customers as mandated or otherwise required by the Federal Government or a State and that such characterization is incorrect, the Federal Communications Commission or the Federal Trade Commission, as the case may be, may require the carrier to discontinue such characterization. (3) Additional actions.--If the Federal Communications Commission or the Federal Trade Commission determines that such Commission does not have authority under law to take actions under paragraph (1) that would be appropriate in light of a determination described in paragraph (1), the Federal Communications Commission or the Federal Trade Commission, as the case may be, shall notify Congress of the determination under this paragraph in the report under subsection (e). (e) Report.--Not later than one year after the date of the enactment of this Act, the Federal Communications Commission and the Federal Trade Commissions shall jointly submit to Congress a report on the results of the investigation under subsection (a). The report shall include the determination, if any, of either Commission under subsection (d)(3) and any recommendations for further legislative action that such Commissions consider appropriate. SEC. 4. TREATMENT OF MISLEADING TELECOMMUNICATIONS BILLS AND TELECOMMUNICATIONS RATE PLANS. (a) Federal Trade Commission.--The Federal Trade Commission shall treat any telecommunications billing practice or telecommunications rate plan that the Commission determines to be intentionally misleading as an unfair business practice under the Federal Trade Commission Act (15 U.S.C. 41 et seq.). (b) Federal Communications Commission.--The Federal Communications Commission shall, upon finding that any holder of a license under the Commission has repeatedly and intentionally engaged in a telephone billing practice, or has repeatedly and intentionally utilized a telephone rate plan, that is misleading, treat such holder as acting against the public interest for purposes of the Communications Act of 1934 (47 U.S.C. 151 et seq.). SEC. 5. REQUIREMENTS FOR ALL BILLS FOR TELECOMMUNICATIONS SERVICES. (a) Average Per Minute Rate Calculation.--Each telecommunications carrier shall display on the first page of each customer bill for telecommunications services the average per-minute charge of telecommunications services of such customer for the billing period covered by such bill. (b) Calling Patterns.--Each telecommunications carrier shall display on the first page of each customer bill for telecommunications services the percentage of the total number of telephone calls of such customer for the billing period covered by such bill as follows: (1) That began on a weekday. (2) That began on a weekend. (3) That began from 8 a.m. to 8 p.m. (4) That began from 8:01 p.m. to 7:59 a.m. (5) That were billed to a calling card. (c) Average Per-Minute Charge Defined.--In this section, the term ``average per-minute charge'', in the case of a bill of a customer for a billing period, means-- (1) the sum of-- (A) the aggregate amount of monthly or other recurring charges, if any, for telecommunications services imposed on the customer by the bill for the billing period; and (B) the total amount of all per-minute charges for telecommunications services imposed on the customer by the bill for the billing period; divided by (2) the total number of minutes of telecommunications services provided to the customer during the billing period and covered by the bill. SEC. 6. REQUIREMENTS FOR TELECOMMUNICATIONS CARRIERS IMPOSING CERTAIN CHARGES FOR SERVICES. (a) Billing Requirements.--Any telecommunications carrier shall include on the bills for telecommunications services sent to its customers the following: (1) An accurate name and description of any covered charge. (2) The recipient or class of recipients of the monies collected through each such charge. (3) A statement whether each such charge is required by law or collected pursuant to a requirement imposed by a governmental entity under its discretionary authority. (4) A specific explanation of any reduction in charges or fees to customers, and the class of telephone customer that such reduction, that are related to each such charge. (b) Universal Service Contributions and Receipts.--Not later than January 31 each year, each telecommunications carrier required to contribute to universal service during the previous year under section 254(d) of the Communications Act of 1934 (47 U.S.C. 254(d)) shall submit to the Federal Communications Commission a report on following: (1) The total contributions of the carrier to the universal service fund during the previous year. (2) The total receipts from customers during such year designed to recover contributions to the fund. (c) Action on Universal Service Contributions and Receipts Data.-- (1) Review.--The Federal Communications Commission shall review the reports submitted to the Commission under subsection (b) in order to determine whether or not the amount of the contributions of a telecommunications carrier to the universal service fund in any year is equal to the amount of the receipts of the telecommunications carrier from its customers in such year for purposes of contributions to the fund. (2) Additional contributions.--If the Commission determines as a result of a review under paragraph (1) that the amount of the receipts of a telecommunications carrier from its customers in a year for purposes of contributions to the universal service fund exceeded the amount contributed by the carrier in such year to the fund, the Commission shall have the authority to require the carrier to deposit in the fund an amount equal to the amount of such excess. (d) Covered Charges.--For purposes of subsection (a), a covered charge shall include any charge on a bill for telecommunications services that is separate from a per-minute rate charge, including a universal service charge, a subscriber line charge, and a presubscribed interexchange carrier charge. SEC. 7. TELECOMMUNICATIONS CARRIER DEFINED. In this Act, the term ``telecommunications carrier'' has the meaning given that term in section 3(44) of the Communications Act of 1934 (47 U.S.C. 153(44)).
summary: Requires the FTC to treat any telecommunications billing practice or rate plan determined to be intentionally misleading as an unfair business practice for purposes of the Federal Trade Commission Act. Requires the FCC, upon a finding that any holder of an FCC license has repeatedly and intentionally engaged in a telephone billing practice or utilized a rate plan that is misleading, to treat such holder as acting against public interest for purposes of the Communications Act of 1934. Requires each carrier to display on the first page of each customer bill: (1) the average per-minute charge of telecommunications services for the billing period; and (2) the percentage of the total number of telephone calls of such customer that took place on a weekday, weekend, daytime, or nighttime, and the percentage that were billed to a calling card. Requires customer bills to include: (1) an accurate name and description of any covered charge and the recipient of monies collected through such charge; (2) a statement of whether each such charge is required by law or by a governmental entity under its discretionary authority; and (3) an explanation of any reduction in charges or fees. Directs each carrier required to contribute to universal services during the previous year to report to the FCC on their total contributions during the previous year and the total receipts from customers to recover such contributions. Directs the FCC to review such reports to determine whether such amounts are equal and, if not, to require such carrier to deposit an equal amount.