HB0728 96TH GENERAL ASSEMBLY

LRB096 04149 MJR 14191 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0728

Introduced 2/6/2009, by Rep. Kevin Joyce

SYNOPSIS AS INTRODUCED:

New Act
815 ILCS 505/2Z	from Ch. 121 1/2, par. 262Z

Creates the Calling Card Consumer Protection Act. Sets forth the findings of the General Assembly. Contains required disclosures for prepaid telephone calling cards and services. Specifies what qualifies as unlawful conduct related to prepaid telephone calling cards and that a violation of specified provisions is an unlawful practice within the meaning of the Consumer Fraud and Deceptive Business Practices Act. Effective immediately.

A BILL FOR

AN ACT concerning utilities.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Calling Card Consumer Protection Act.

Section 5. Findings. The General Assembly finds that:

(1) the prepaid telephone calling card industry in the United States is plagued by fraudulent and deceptive business practices; and

(2) the necessary protections relating to prepaid telephone calling cards must ensure that all advertising is truthful, accurate, and reasonably discloses the terms and conditions of prepaid telephone calling cards and prepaid telephone calling services.

Section 10. Definitions. As used in this Act:

"Prepaid telephone calling service provider" means any entity, corporation, company, association, firm, partnership, or person providing prepaid telephone calling service to the public using its own, or a resold telecommunications network or voice over Internet technology.

"Prepaid telephone calling service" or "service" means any prepaid telecommunications service that allows consumers to originate calls through a local, long distance, or toll-free access number and authorization code, whether manually or electronically dialed. "Prepaid telephone calling service" or "service" does not include any service that provides access to a wireless telecommunications service account wherein the purchaser has a pre-existing relationship with the wireless service provider or establishes a carrier-customer relationship via the purchase of the object.

"Prepaid telephone calling card" or "card" means any right of use purchased for a sum certain that contains an access number and authorization code that enables a consumer to use a prepaid telephone calling service. The rights of use may be embodied on a card or other physical object or may be purchased by an electronic or telephonic means through which the purchaser obtains access numbers and authorization codes that are not physically located on a card, its packaging, an Internet website, or other promotional materials. "Prepaid telephone calling card" or "card" does not include cards or other rights of use that provide access to any of the following:

(1) a telecommunications service wherein the card or other rights of use and telecommunications service are provided for free or at no additional charge as a promotional item accompanying a product or service purchased by a consumer; or

(2) a wireless telecommunications service account wherein the purchaser has a pre-existing relationship with the wireless service provider or establishes a carrier-customer relationship via the purchase of the object.

"Prepaid telephone calling card distributor" means any entity, corporation, company, association, firm, partnership, or person that purchases prepaid telephone calling cards from a prepaid telephone calling card provider or distributor and sells, re-sells, issues, or distributes cards to one or more distributors of such cards or to one or more retail sellers of cards. "Prepaid telephone calling card distributor" does not include any retail merchants or sellers of prepaid telephone calling cards exclusively engaged in point-of-sale transactions with end-user customers.

Section 15. Required disclosures of prepaid telephone calling cards or services.

(a) Any prepaid telephone calling service provider or prepaid telephone calling card distributors shall disclose all of the following information relating to the terms and conditions of the prepaid telephone calling card or service:

(1) The total value in dollars or the number of calling minutes available of the prepaid telephone calling card or service at the time of purchase.

(2) A description of any and all terms and conditions pertaining to, and associated with, the use of the prepaid telephone calling service and prepaid telephone calling card, including all fees, limitations on the use of minutes available, and surcharges and applicable policies relating to refund, recharge, decrement, and expiration.

(3) The name of the prepaid telephone calling service provider.

(4) The prepaid telephone calling service provider's customer service telephone number and hours of service.

(b) The location of the disclosure and language requirement shall be as follows:

(1) In the case of a prepaid telephone calling card, the disclosures required under subsection (a) of this Section shall be printed in plain English language in a clear and conspicuous location on the prepaid telephone calling card or its packaging. If the card is enclosed in opaque packaging, the disclosures shall be printed on the outside packaging of the card.

(2) In the case of a prepaid telephone calling service that consumers access and purchase via the Internet, the disclosures required under subsection (a) of this Section shall be displayed in plain English language in a clear and conspicuous location on the Internet site that the consumer must access prior to purchasing the service.

(3) The disclosures required under subsection (a) of this Section shall also be printed on any advertising for the prepaid telephone calling card or service, including on any signs for display by retail merchants, any promotional emails, any Internet site used to promote the card or service, and on any other promotional material.

(4) If a language other than English is predominantly used on a prepaid telephone calling card, its packaging, or in point of sale advertising, or promotional material of a prepaid telephone calling card or prepaid telephone calling service, then the disclosures required by this Section shall be disclosed in that language on the card, packaging, advertisement, or promotional material.

Section 20. Unlawful conduct related to prepaid telephone calling cards.

(a) It shall be a violation of the Consumer Fraud and Deceptive Business Practices Act for any prepaid telephone calling service provider or prepaid telephone calling card distributor to assess any fee associated with the prepaid telephone calling card or prepaid telephone calling service, or impose any charge for any permitted use of the prepaid telephone calling card or prepaid telephone calling service if the fee or charge is not disclosed as required under Section 15 of this Act.

(b) It shall be a violation of the Consumer Fraud and Deceptive Business Practices Act for any prepaid telephone calling service provider to provide fewer minutes than the number of minutes promoted or advertised on any prepaid telephone calling card, any point of sale material relating to the card or the other advertising related to any prepaid telephone calling card or service. Any limitation on the period of time for which the displayed, promoted, or advertised minutes will be available to the customer shall be conspicuously displayed on the card, packaging, and promotional material that lists the minutes, consistent with Section 15 of this Act.

(c) It shall be a violation of the Consumer Fraud and Deceptive Business Practices Act for any prepaid telephone calling card distributor to distribute any prepaid telephone calling card that the distributor knows that the prepaid telephone calling card provides fewer minutes than the number of minutes promoted or advertised on any prepaid telephone calling card, any point of sale material relating to such card, any voice prompt indicating the number of minutes available, or other advertising relating to any prepaid telephone calling card or service. Any limitations on the period of time for which the displayed, promoted, or advertised minutes will be available to the customer shall be conspicuously displayed on the card, packaging, and promotional material that lists the minutes, consistent with Section 15 of this Act.

(d) It shall be a violation of the Consumer Fraud and Deceptive Business Practices Act for any prepaid telephone calling service provider to provide fewer minutes than the number of minutes promoted or advertised through any voice prompt given to a customer at the time the customer places a call to a dialed destination with the prepaid telephone calling card or service.

(e) It shall be a violation of the Consumer Fraud and Deceptive Business Practices Act for any prepaid telephone calling card distributor to distribute prepaid telephone calling cards that it knows provide fewer minutes than the number of minutes promoted or advertised through any voice prompt given to a customer at the time the customer places a call to a dialed destination with the prepaid telephone calling card or service.

(f) Unless a different expiration date is clearly disclosed pursuant to the disclosure requirements under Section 15 of this Act, it shall be unlawful for any prepaid telephone calling service provider or prepaid telephone calling card distributor to provide, issue, resell, or distribute a prepaid telephone calling card or service that expires (i) less than 1 year from the date on which the card or service is first used; or (ii) in the case of a prepaid telephone calling card or service that permits the consumer to purchase additional usage minutes or add additional value to the card or service, less than 1 year from the date on which the consumer last purchased additional usage minutes or added additional value to the card or service.

(g) It shall be a violation of the Consumer Fraud and Deceptive Business Practices Act for any prepaid telephone calling service provider or service to assess any fee or charge for any unconnected telephone call. For purposes of this subsection (g), a telephone call shall not be considered connected if the person placing the call receives a busy signal or if the call is unanswered.

(h) Liability under this Section may not be avoided by stating that the displayed, promoted, or advertised minutes are subject to fees or charges, or by utilizing other disclaimers or limitations.

(i) A violation of this Section is an unlawful practice within the meaning of the Consumer Fraud and Deceptive Business Practices Act.

Section 90. The Consumer Fraud and Deceptive Business Practices Act is amended by changing Section 2Z as follows:

(815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)

Sec. 2Z. Violations of other Acts. Any person who knowingly violates the Automotive Repair Act, the Automotive Collision Repair Act, the Home Repair and Remodeling Act, the Dance Studio Act, the Physical Fitness Services Act, the Hearing Instrument Consumer Protection Act, the Illinois Union Label Act, the Job Referral and Job Listing Services Consumer Protection Act, the Travel Promotion Consumer Protection Act, the Credit Services Organizations Act, the Automatic Telephone Dialers Act, the Pay-Per-Call Services Consumer Protection Act, the Telephone Solicitations Act, the Illinois Funeral or Burial Funds Act, the Cemetery Care Act, the Safe and Hygienic Bed Act, the Pre-Need Cemetery Sales Act, the High Risk Home Loan Act, the Payday Loan Reform Act, the Mortgage Rescue Fraud Act, subsection (a) or (b) of Section 3-10 of the Cigarette Tax Act, the Payday Loan Reform Act, subsection (a) or (b) of Section 3-10 of the Cigarette Use Tax Act, the Electronic Mail Act, the Internet Caller Identification Act, paragraph (6) of subsection (k) of Section 6-305 of the Illinois Vehicle Code, Section 18d-115, 18d-120, 18d-125, 18d-135, or 18d-150 of the Illinois Vehicle Code, Article 3 of the Residential Real Property Disclosure Act, the Automatic Contract Renewal Act, the Calling Card Consumer Protection Act, or the Personal Information Protection Act commits an unlawful practice within the meaning of this Act.

(Source: P.A. 94-13, eff. 12-6-05; 94-36, eff. 1-1-06; 94-280, eff. 1-1-06; 94-292, eff. 1-1-06; 94-822, eff. 1-1-07; 95-413, eff. 1-1-08; 95-562, eff. 7-1-08; 95-876, eff. 8-21-08.)

Section 99. Effective date. This Act takes effect upon becoming law.