The Federal Trade Commission’s 900 Number Rule protects consumers who dial 900 (900 numbers usually charge fees for their services). Before making such a call, it attempts to advise the consumer of the following:
- What will the call cost?
- What will the buyer get in return for their money?
- What happens if a customer and a company dispute a bill?
Customers who used pay-per-call services were not always informed of how much the call would cost and what they would receive in exchange. To make it easier for them to access this information, Congress approved the Telephone Disclosure and Dispute Resolution Act in 1992.
This Act required the Federal Trade Commission to develop regulations for the pay-per-call services industry.
The FTC’s 900-Number Rule, which went into effect on November 1, 1993, governs pay-per-call enterprises’ invoicing and collection processes and their advertising and operation.
You should also be aware of a rule imposed by the Federal Communications Commission (FCC) for common carriers that assign phone numbers for interstate pay-per-call services. The FCC’s Common Carrier Bureau’s Informal Complaints and Public Inquiries Branch can be reached at Washington, DC, 20554.
If you run a pay-per-call business or handle billing for a pay-per-call service, this leaflet will explain how to comply with the FTC’s 900-Number Rule.
Who Is Affected by the FTC Rule?
The FTC 900-Number Rule applies to all pay-per-call service providers. A “provider of pay-per-call services” (or “information provider”) is anyone who sells or makes an offer to sell a pay-per-call service.
Service bureaus that offer information providers access to telephone services and voice storage may be held liable for 900-Number Rule violations if they knew or should have known that pay-per-call enterprises were illegally using their call-processing facilities.
Furthermore, billing businesses that send billing statements for pay-per-call services must adhere to the 900-Number Rule’s billing and collection obligations.
What are the Rule’s Exemptions?
The 900-Number Rule applies to the District of Columbia as well as the entire United States. It also applies to American Samoa, Guam, Puerto Rico, and the United States Virgin Islands.
Are There Any Exceptions to the Rules?
If you have a preexisting contractual arrangement with such a service, the 900 Number Rule will not apply to you. Typically, the Rule will not apply to your calls to the service under such arrangements. Furthermore, the Rule does not apply to calls made with a credit card.
To be exempt from the 900-Number Rule, a corporation must be able to demonstrate that a subscription agreement that meets all of the provisions of the Rule has been established. Any such arrangement must also follow the basic standards of contract law.
For example, if the consumer entering into the agreement is a minor, the “contract” would be null and void because a minor is not legally entitled to engage in a contract.
A pre-subscription agreement can be formed during a call to an 800 number; however, the caller cannot then be converted to a pay-per-call service. Presubscription agreements cannot be established over the phone while dialing a 900 number.
If the credit or charge card is subject to the Fair Credit Billing Act and the Truth in Lending Act’s dispute-resolution provisions, then calls charged to that number are excluded from the 900-Number Rule.
The TILA applies to the vast majority of credit and debit cards. The TILA does not apply to credit cards used primarily for commercial or business purposes. The fact that a public utility issues long-distance calling cards and submits the fees for the service with a government agency exempts them from taxation.
However, a telephone calling card used to bill calls to pay-per-call services may be subject to the TILA’s dispute-resolution processes to the extent that charges for pay-per-call services are not lodged with or regulated by a government body.
All pay-per-call service marketing must include a fee disclosure. Services that promote sweepstakes or gambling games and provide information on federal programs (but are not sponsored by a federal agency) must include additional ad disclaimers.
Ads aimed at children under the age of 12 are not permitted.
Across-the-Board Disclosure Requirements
To be understood and evident, all disclosures must follow specific principles. The guideline also specifies the manner in which each disclosure must be made. The following regulations apply to all disclosures.
It is mandatory that the disclosures be made in the same language as the advertisement. If the advertisement is in Spanish, the disclosures must also be in Spanish.
What Are the 900 Number Rule Provisions?
The FTC’s 900 Number Rule mandates specific information to be provided in 900 number advertisements and preambles. Advertisements for 900 numbers in print, radio, or television must include the following:
- The ad should specify the pricing range if different rates apply to different alternatives.
- The call’s initial cost and any minimum fees
- If there is a flat rate, the total cost of the call is displayed.
- If there is a per-minute charge, the per-minute rate is displayed (as well as any minimum charge)
- If the length of the program is known ahead of time, the total cost of the entire program.
- The expense of transferring you to another 900 number.
- Other charges
This information cannot be concealed in small text in the advertisement. It should instead be placed next to the 900 number. It should also be at least half the size of the actual number. Such disclaimers are also required for television commercials.
Can I Be Punished for Using a Preamble?
A preamble is a message that you hear when you dial a 900 number for the first time (the introductory message). This cannot be charged to you. This prologue must include defining the service, the company’s name, and the contact cost.
It must also mention the minimum calling age (under 18 requires parental permission). Following that, you must be given three seconds to end the call without being charged.
What Kinds of 900 Numbers Are Supported?
The FTC’s 900 Number Rule applies to a variety of services, including:
- Federal Programs and Sweepstakes: You should not have to pay to enter a contest; there should be a method to sign up for free. Furthermore, any 900 number providing information about government programs must clearly disclose that it is not authorized or approved by a government entity.
- Children: 900 numbers should not be pushed to small children (i.e., the chance to speak to a cartoon character). Such figures must be instructive in nature for youngsters under the age of 12. Ads aimed at those under the age of 18 must have parental consent.
- Toll-Free Numbers: Pay-per-call businesses are not permitted to utilize toll-free numbers for their services. They cannot also transfer you from a toll-free number to a 900 number.
- Collect Calls: These services are unable to make collect calls to you if the charge exceeds the usual long-distance rate for the call.
Do I Need a Lawyer Who Has Handled Similar Cases?
An entertainment lawyer can point you in the right direction and walk you through the FTC’s 900 Number Rule. A lawyer can advise you of your rights under the Rule and assist you if you have a problem.
