Report Title:

Prepaid Calling Cards; Disclosure

 

Description:

Requires companies selling prepaid calling cards to disclose the terms and services of the cards.  Makes a violation of disclosure requirement an unfair or deceptive act or practice.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1970

TWENTY-FOURTH LEGISLATURE, 2008

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to prepaid calling cards.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Chapter 269, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§269-    Prepaid calling cards; definitions; disclosures; rules; violation.  (a)  As used in this section:

     "Prepaid calling card company"  means a company that provides a prepaid calling service to the public using its own network or resold services.

     "Prepaid calling service" means a prepaid telecommunications service that allows an end user to originate a telephone call using an access number and an authorization code.

     "Telecommunications service" means the offering of transmission between or among points specified by a user, of information of the user's choosing, including voice, data, image, graphics, and video without change in the form or content of the information, as sent and received, by means of electromagnetic transmission, or other similarly capable means of transmission, with or without benefit of any closed  transmission medium, and does not include cable service as defined in section 440G-3.

     (b)  Any prepaid calling card company that sells or offers for sale prepaid calling cards, at the time of sale, shall disclose clearly and conspicuously:

     (1)  Any surcharges or fees, including monthly fees, per call access fees and surcharges for the first minute or unit of use that may be applicable to the use of the prepaid calling card;

     (2)  Any rounding of time used by the consumer and the formula of computation of the rounding of time;

     (3)  Any application or other fees charged to the consumer;

     (4)  Any restrictions on use of the prepaid calling card; and

     (5)  A toll-free consumer assistance telephone number.

     (c)  The director of the office of consumer protection may adopt rules under chapter 91 prescribing additional information that a prepaid calling card company shall provide to the consumer at the time of purchase.

     (d)  A violation of this section shall be deemed an unfair or deceptive act or practice under section 480-2."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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