When consumers dial a 900 number, they are protected by the Federal Trade Commission’s 900 Number Rule (900 numbers usually charge fees for their services). It tries to inform the consumer about the following before making such a call:
- How much will the call cost?
- What will the buyer receive in exchange for their money?
- What happens if the customer and the business disagree about a bill?
Consumers who used pay-per-call services were only sometimes aware of how much the call would cost and what they would get in return. Congress passed the Telephone Disclosure and Dispute Resolution Act in 1992 to make it easier for them to obtain this information. The Federal Trade Commission was mandated by this Act to establish regulations for the pay-per-call services sector.
The FTC’s 900-Number Rule, which went into effect on November 1, 1993, regulates the invoicing and collection practices for pay-per-call businesses and their advertising and operation.
You should also be aware of a rule the Federal Communications Commission (FCC) enacted for common carriers that allocate phone numbers for interstate pay-per-call services. Contact information for the FCC’s Common Carrier Bureau’s Informal Complaints and Public Inquiries Branch is available at Washington, DC 20554.
This pamphlet discusses how you can abide by the FTC’s 900-Number Rule if you run a pay-per-call business or handle billing for a pay-per-call service.
Who Is Subject to the FTC Rule?
All pay-per-call service providers must follow the FTC 900-Number Rule. Any individual who sells or makes an offer to sell a pay-per-call service is referred to as a “provider of pay-per-call services” (or “information provider”).
Service bureaus that give information providers access to telephone services and voice storage may be held accountable for 900-Number Rule violations if they knew or should have known that pay-per-call businesses using their call-processing facilities were doing so illegally. Additionally, the 900-Number Rule’s billing and collection requirements must be followed by billing companies that send billing statements for pay-per-call services.
What Areas are Covered by the Rule?
The District of Columbia and the entire United States are subject to the 900-Number Rule. It also holds true in American Samoa, Guam, Puerto Rico, and the U.S. Virgin Islands.
Do the Rules Have Exceptions?
The 900 Number Rule will not apply to you if you have a prior contractual arrangement with such a service. Typically, under such arrangements, the Rule will not apply to your calls to the service. Additionally, the Rule does not apply to calls made using a credit card.
A company must be able to demonstrate that a subscription agreement that satisfies all of the 900-Number Rule’s conditions has been established for it to be exempt from the rule. Any such arrangement must also adhere to the fundamental rules of contract law. For instance, the “contract” would be void if the customer joining the agreement is a minor because a minor is not legally authorized to enter into a contract.
During a call to an 800 number, a pre-subscription agreement can be made; however, the caller cannot thereafter be switched to a pay-per-call service. Presubscription agreements cannot be made during calls to a 900 number.
If the credit or charge card is subject to the dispute-resolution requirements of the Fair Credit Billing Act and the Truth in Lending Act, then the calls that are charged to that number are exempt from the 900-Number Rule.
The majority of credit and charge cards fall under the TILA. The TILA does not apply to credit cards used primarily for business or commercial reasons. The fact that a public utility issues calling cards for long-distance calls and files the fees for the service with a government body also exempts them from taxation.
To the extent that charges for pay-per-call services are not lodged with or subject to regulation by a government agency, however, a telephone calling card used to bill calls to pay-per-call services may be subject to the dispute-resolution processes of the TILA.
A cost disclosure is required in all pay-per-call service marketing. Services that advertise sweepstakes or gambling games provide details on federal programs (but are not sponsored by a federal agency) and promote sweepstakes or games of chance must include additional ad disclosures.
Ads intended for children under the age of 12 are not allowed.
Requirements Across the Board for All Disclosures
All disclosures must adhere to certain rules in order to be understood and obvious. The rule also establishes precise rules for how each disclosure must be provided. For all disclosures, the following rules apply.
It is required that the disclosures be given in the same language that dominates the advertisement. The disclosures must be in Spanish if the advertisement is in Spanish.
What Should Be on My Phone Bill?
The 900 Number Rule outlines procedures for settling disputes. Checking your phone statement for any charges that stand out as unusual should be your first step. The date, time, and duration of each 900 call should be listed on your statement (for those services with per-minute rates).
These fees ought to be listed separately from other fees. There should be a phone number listed that you can call with any inquiries regarding pay-per-call fees. If you don’t pay a 900 number fee, your phone company can’t disconnect you (but you may be blocked from making similar calls in the future).
How Do I Fix a Billing Error or Conflict?
Follow the directions on your statement first if you find an issue after checking your bill.
Typically, you will be instructed to contact your phone company, the actual 900 number provider, or even a third-party business that handles the company’s invoicing. Call within 60 days of when your statement was issued. The company shall acknowledge your notice in writing as required by the Rule (within 40 days). It must either correct your bill and tell you within two billing cycles (no more than 90 days) or look into the situation (and correct the error or, if not, explain why it did not do so).
The investigation is free of charge, and businesses that disobey the rules risk losing up to $50 of each contested charge.
How Can I Prevent Such Issues?
It would be best if you stayed informed on how to avoid running into 900 Number Issues.
There is a distinction between 800 (or 888) numbers and 900 numbers. For 900 numbers, you are responsible for paying the fees, whereas, for 800 numbers, the service provider is responsible.
Before phoning, do some research on the company. Before making a call, be sure you are aware of the services you will be receiving and the cost of the call.
Watch out for “free” goods. An advertisement that requests a call in exchange for a “free” present might be paid by the 900 number fee.
Talk about 900 numbers with your kids. Inform your kids that calling a 900 number requires your consent first. Your phone provider can, at your request, prevent calls from your device to 900 numbers (for a reasonable fee).
Do I Need a Lawyer Who Has Handled These Issues Before?
You could learn more about your rights and obligations under the FTC’s 900 Number Rule from an entertainment attorney. If you have a problem with 900 number costs on your billing statement, a lawyer can also assist you.
