HB0728ham002 96TH GENERAL ASSEMBLY

Rep. Kevin Joyce

Filed: 3/31/2009

09600HB0728ham002 LRB096 04149 MJR 24016 a

AMENDMENT TO HOUSE BILL 728

AMENDMENT NO. ______. Amend House Bill 728, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 5. The Consumer Fraud and Deceptive Business Practices Act is amended by changing Section 2TT as follows:

(815 ILCS 505/2TT)

Sec. 2TT. Prepaid calling service.

(a) For purposes of this Section, the terms "Prepaid Calling Service", "Prepaid Calling Service Provider", "Prepaid Calling Service Retailer", and "Prepaid Calling Service Reseller" shall have the same definitions as those in Sections 13-230, 13-231, 13-232, and 13-233, respectively, of the Public Utilities Act.

For purposes of this Section, "prepaid 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 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 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 where 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 where the purchaser has a pre-existing relationship with the wireless service provider or establishes a carrier-customer relationship through the purchase of the object.

For the purposes of this Section, "international preferred destination" means a prepaid calling service that advertises a specific international destination that is advertised or promoted either on the card, the packaging material accompanying the card, or through an offering of sale of the card or service.

(b) On and after July 1, 2005, it is an unlawful practice under this Act for any prepaid calling service provider or prepaid calling service reseller to sell or offer to sell prepaid calling service to any prepaid calling service retailer unless the prepaid calling service provider has applied for and received a Certificate of Prepaid Calling Service Provider Authority from the Illinois Commerce Commission pursuant to the Public Utilities Act and the prepaid calling service provider or prepaid calling service reseller shows proof of the prepaid calling service provider's Certificate of Prepaid Calling Service Provider Authority to the prepaid calling service retailer.

(c) On and after July 1, 2005, it is an unlawful practice under this Act for any prepaid calling service retailer to sell or offer to sell prepaid calling service to any consumer unless the prepaid calling service retailer retains proof of certification of the prepaid calling service provider by the Illinois Commerce Commission pursuant to the Public Utilities Act. The prepaid calling service retailer must retain proof of certification for one year or the duration of the contract with the reseller, whichever is longer. A prepaid calling service retailer with multiple locations selling prepaid calling cards under contract with a prepaid calling service provider may keep the certification at a central location; provided, however, that the prepaid calling service retailer make a copy of the certification available upon reasonable request within 48 hours.

(d) On and after July 1, 2005, no prepaid calling service provider or prepaid calling service reseller shall sell or offer to sell prepaid calling service, as those terms are defined in Article XIII of the Public Utilities Act, to any Illinois consumer, either directly or through a prepaid calling service retailer, unless the following disclosures are made clearly and conspicuously:

(1) At a minimum, the following terms and conditions shall be disclosed clearly and conspicuously on the prepaid calling card, if applicable:

(A) the full name of the Prepaid Calling Service Provider as certificated by the Illinois Commerce Commission;

(B) the toll-free customer service number, and if such service is not provided 24 hours per day, 7 days per week, then the hours of service;

(C) an access number that is toll-free or a number local to the prepaid calling retailer; and

(D) the refund policy or a statement that the refund policy is located on the packaging materials.

(2) At a minimum, all the material terms and conditions pertaining to the specific prepaid calling card shall be disclosed clearly and conspicuously on the prepaid calling card or the packaging materials accompanying the prepaid calling card, or visibly displayed at the point of sale, including, but not limited to, the following, if applicable:

(A) the value of the card in minutes or the domestic rate per minute of the card;

(B) all surcharges, limitations on the use of minutes available, and fees applicable to the use of the domestic prepaid calling service;

(C) all applicable rates for international preferred destinations;

(D) all applicable surcharges and fees for international preferred destinations;

(E) a disclosure statement indicating that all rates, surcharges, and fees applicable to international calls are available through the toll-free customer service number and on the prepaid calling service provider's website and a statement disclosing if international rates vary from domestic rates; and

(F) applicable policies relating to refund, recharge, decrement, and expiration. If the card is enclosed in opaque packaging, then the disclosures shall be printed on the outside of the packaging of the card the expiration policy.

(3) At a minimum, the following information must shall be disclosed clearly and conspicuously and accurately provided through the toll-free customer service telephone number through which the customer is able to speak with a live customer service representative:

(A) the Illinois Commerce Commission certificate number of the Prepaid Calling Service Provider;

(B) all applicable rates, terms, surcharges, and fees for domestic and international calls;

(C) all information necessary to determine the cost of a given call;

(D) the balance of use in the consumer's account; and

(E) the applicable expiration date or period.

(4) In the case of a prepaid calling service that consumers access and purchase via the Internet, the disclosures required under this subsection (d) shall be displayed in a clear and conspicuous location, including conspicuous instructions and directions to any link to such disclosures, on the Internet site that the consumer must access prior to purchasing service.

(5) The disclosures required in this subsection (d) shall also be printed on any signs for display by retail merchants and on any other promotional material used at the point of sale that is prepared by, or at the direction of, a prepaid calling service provider, prepaid calling service reseller, or prepaid calling service retailer.

(6) If a language other than English is predominately used on a prepaid telephone calling card or its packaging or in point of sale advertising or promotional material of a prepaid calling service provider, prepaid calling service reseller, or prepaid calling service retailer, then the disclosures required by this subsection (d) shall be disclosed in that language on the card, packaging, advertisement, or promotional material.

Subject to the requirements of item (ii) of subsection (j) of this Section, the disclosures required under this subsection (d) do not apply to the recharging of dollars or minutes to a previously purchased card allowing prepaid calling service.

(e) It shall be a violation of this Act for any prepaid calling service provider, prepaid calling service reseller, or prepaid calling service retailer to assess any fee associated with the prepaid calling card or prepaid calling service, or impose any charge for any permitted use of the prepaid calling card or prepaid calling service if the fee or charge is not disclosed as required under subsection (d) of this Section.

(f) It shall be a violation of this Act for any prepaid calling service provider, prepaid calling service reseller, or prepaid calling service retailer to make available fewer minutes than the number of minutes promoted or advertised on any prepaid calling card, any point of sale material relating to the card, or the other advertising related to any prepaid 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, and be consistent with subsection (d) of this Section.

(g) It shall be a violation of this Act for any prepaid calling service provider, prepaid calling service reseller, or prepaid calling service retailer to distribute any prepaid calling card that the prepaid calling service provider, prepaid calling service reseller, or prepaid calling service retailer knows provides fewer minutes than the number of minutes promoted or advertised on any prepaid 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 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, and be consistent with subsection (d) of this Section.

(h) It shall be a violation of this Act for any prepaid 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 calling card.

(i) It shall be a violation of this Act for any prepaid calling service reseller or prepaid calling service retailer to distribute prepaid 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 calling card.

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

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

(l) Liability under this Section may not be avoided by simply stating that the displayed, promoted, or advertised minutes are subject to fees or charges. A prepaid calling service provider, prepaid calling service reseller, or prepaid calling service retailer shall not be liable for lawful fees, charges, and limitations, including lawful conditions of use, that are disclosed.

The disclosures required under this subsection (d) do not apply to the recharging of dollars or minutes to a previously purchased card allowing prepaid calling service.

(Source: P.A. 95-331, eff. 8-21-07.)

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