Calling Card Consumer Protection Act

Floor Speech

CALLING CARD CONSUMER PROTECTION ACT -- (Extensions of Remarks - September 28, 2008)

SPEECH OF
HON. JANICE D. SCHAKOWSKY
OF ILLINOIS
IN THE HOUSE OF REPRESENTATIVES
THURSDAY, SEPTEMBER 25, 2008

* Ms. SCHAKOWSKY. Madam Speaker, I rise today in support of H.R. 3402, the Calling Card Consumer Protection Act. After years of deceptive and abusive marketing practice by the calling card industry, I am pleased to be here today to offer protection to our constituents who rely on the cards to stay in touch with their loved ones. The victims of calling card fraud are often the most vulnerable among us--they are low-income, immigrants, military families--in short, the ones who can least afford it. I think this is sensible legislation, and I thank my colleague and friend Congressman Eliot Engel for all of his hard work to enact this bill.

* I am proud to represent a diverse constituency and am proud to support the Calling Card Consumer Protection Act to crack down on those abuses. Too many people are lured in by promises of cheap overseas calls but end up getting less than half of what they paid for. These cards use hidden fees so creative and outlandish that they would almost be funny if they weren't so awful, and the practice must stop.

* The legislation before us today goes a long way toward solving this problem. It would require calling cards to clearly present what services they offer and any additional fees associated with the card. Most importantly, if someone buys a card that says it's good for 250 minutes, they will receive those 250 minutes. Consumers deserve to get what they paid for.

* While I support H.R. 3402, I do want to express my concern with a couple of provisions in the bill, especially those that involve State standards and enforcement. Many States and the Federal Trade Commission, FTC, already have tools to address the many abuses related to the sale of prepaid calling cards. As we heard from the FTC Commissioner in our hearing, those States are at the forefront of cracking down on deceptive practices. Therefore, we need to be very careful about preempting States from setting or enforcing standards related to the cards.

* I believe that the disclosure preemption provision in H.R. 3402 should set a floor, not a ceiling, and allow those States that want to enact stricter disclosure standards to do so. Illinois is on the forefront of policing calling cards, and our State law mandates strong disclosures that should not be preempted with weaker ones. I also hope that the FTC will solicit input from the States as they work to establish minimum standards.

* Finally, I also believe that retailers should be held responsible for selling cards that do not meet the Federal and State standards. Illinois State law requires retailers to obtain a proof that the underlying carrier is certified, with the underlying carrier and all resellers responsible for ensuring that the required disclosures are made. This is not a burdensome step for retailers to ensure that the product they sell is in compliance with the law, and this is a commonsense provision that should be included in H.R. 3402 as well.

* I look forward to working with Rep. Engel, my colleagues on Committee, and my friends on the Senate Commerce Committee to improve this bill and to see it enacted into law.

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