The Prepaid Press - October 15, 2008 - (Page 6)

PREPAID BUSINESS October 15 · 2008 - 6 REGULATORY RUNDOWN by Ed Maldonado New Rules and Requirements Likely for 2009 provider, we recommend that this section of the bill be expanded to include requiring the address of card originator and a toll free number, and that operators answering the phone be able to speak the language in which the card was advertised. The requisite disclosures should be in the same language. We also support requiring that the disclosure text on the calling card itself, packaging, or other promotional material (including online) be in same language used to advertise the card.” The battle for the passage of the Act now moves to the Senate with debate likely to take place on a companion bill in the Senate. On May 8, 2008, Senator Bill Nelson (D-FL) introduced S. 2998 “Prepaid Calling Card Consumer Protection Act of 2008” with similar language to HR 3402. All in the Prepaid Calling Card Industry would be wise to contact local Senators at this juncture, even if it is merely to clarify misconceptions of the entire industry that have been previously portrayed. to IP-enabled voice services; and (C) provide, with respect to any capabilities that are not required to be made available to a commercial mobile service provider but that the Commission determines under subparagraph (B) of this paragraph or paragraph (2)6 are necessary for an IP-enabled voice service provider to comply with its obligations under subsection (a), that such capabilities shall be available at the same rates, terms, and conditions as would apply if such capabilities were made available to a commercial mobile service provider. (2) shall require IP-enabled voice service providers to which the regulations apply to register with the Commission and to establish a point of contact for public safety and government officials… Interconnected VoIP Providers and Prepaid Wireless Providers using VoÏP as a part of their service delivery, who currently give service to individual, residential and business end-users would be wise to familiarize themselves with the above regulations and closely follow the issuance of FCC Rules due this October 2008 under the NET 911 Act. 1. Prepaid Calling Cards: September Passage of Calling Card Consumer Protection Act Shifts to Senate 2. Wireless & Interconnected VoIP Providers: NET 911 Rules cometh by October 21, 2008 3. Stored Value Regulation: New Cross-Border Regulation to come? 1. Prepaid Calling Cards: September Passage of Calling Card Consumer Protection Act by House now shifts debate to Senate – Will we have new law and regulation by 2009? WASHINGTON, D.C. (October 2, 2008) United States Senate. After a nine-day expedited Congressional push through the House of Representatives, HR 3402 entitled “Calling Card Consumer Protection Act” has now reached the U.S. Senate Committee. HR 3204’s passage from the House was unprecedented in that many legislative observers opined that the Bill would likely die in (sub) committee, overshadowed by other Congressional agenda items such as the recent financial market bailout. This is because HR 3402 was introduced last August 3, 2007 and remained virtually dormant until September 16, 2008, when a House Mark-up Session pushed the bill before expedited House Debate on September 25, 2008. The Debate on the floor of the House of Representatives lasted only forty-five minutes, with little to no representation of the industry, and lead to passage by the House through an immediate voice vote – for which there is no record of the voting rolls on the floor that day. The Calling Card Consumer Protection Act (HR 3402 as passed) requires prepaid telephone calling service providers or prepaid telephone calling card distributors to disclose certain information, including the total value in dollars or the number of calling minutes, a description of all terms and conditions, and the service provider’s name, customer service number, and hours of service. The Act also makes it unlawful for any provider or distributor to impose any charge, or fees, and not disclose it; intentionally provide fewer minutes than disclosed; or for the provider to charge for unconnected calls. The Act further regulates service expiration and treats all violations under the Act as an unfair or deceptive act or practice under the Federal Trade Commission Act, thereby requiring the Federal Trade Commission (FTC) to enforce this Act. The Bill was introduced by Rep. Eliot Engel (D-NY) in response to constituent complaints of companies that deducted minutes even if the call is not connected; cut off calls in order to trigger another connection charge; and round up the minutes used in 4-minute increments. Excerpts of testimony from the House (Sub) Committee proceedings on September 16, 2008 depicted the Calling Card Industry as largely fraudulent and existing to merely to rip-off military families, low income users, and immigrants. It was clear that the Industry was viewed as a political soft target in Committee review, with little to no representation or testimony tendered, and may foreshadow the debate to come in the Senate. Some of the harshest criticism came from Ms. Sally Greenberg, Executive Director of the National Consumers League who stated in her released testimony: “The rapid growth of the prepaid calling card industry combined with, until recently, a lax enforcement of consumer protection statues at the state and federal levels, has enabled consumer fraud to flourish. Like so many other scams, the most frequent victims of the fraud and deception are the most vulnerable Section 102 of the NET 911 Act adds a new section 6 to the Wireless 911 Act, which states, in relevant part, an affirmative duty for IP-enabled voice service providers… consumers: immigrants and the working poor; military families, and those lower income Americans who often cannot afford or obtain regular phone service, relying on calling cards to stay in touch with friends and loved ones in the US and abroad. Sadly, along with immigrants, military families are so often targeted for many scams and rip-offs we see at the National Consumer League’s Fraud Center… While some state attorneys general have taken the lead in prosecuting fraudulent prepaid card companies, and the Federal Trade Commission has done commendable investigations and brought important cases against individual prepaid phone card providers, we need basic federal protections to stem the ongoing tide of the many deceptive practices in this industry. Only 11 states, including California, Connecticut, Florida, and Illinois, currently have laws pertaining to calling card fraud, specifically… While HR 3402 requires disclosure of the name of the prepaid calling card service 2. Wireless & Interconnected VoIP Providers: NET 911 Rules cometh by October 21, 2008 WASHINGTON, D.C. (October 1, 2008) The Federal Communications Commission (FCC) has closed reply and comment periods on the New and Emerging Technologies (NET) 911 Improvement Act of 2008 (NET 911 Act) that was signed into law last July 23, 2008. The NET 911 Act required the FCC to issue, no later than October 21, 2008, regulations implementing certain key provisions that, among other things, ensure that providers of IP-enabled voice services have access to the capabilities they need to provide 911 and E911 service pursuant to NET 911 Act § 101(2); and Wireless 911 Act § 6(c)(1). The FCC closed Comments on September 9, 2008 and Replies on September 17, 2008, thereby setting final rulemaking on track for the October deadline. A summary of the Commission’s NET 911 Act NPRM can be found in the Federal Register, at 73 Fed. Reg. 50741 (published Aug. 28, 2008). The law is an attempt to reconcile 911 obligations and access. For several years, VoIP Providers have questioned what is required and what rights they have to access to the 911 network. Section 102 of the NET 911 Act adds a new section 6 to the Wireless 911 Act, which states, in relevant part, an affirmative duty for IP-enabled voice service providers (as a broader category of Interconnected VoIP providers): (a) DUTIES. It shall be the duty of each IPenabled voice service provider to provide 9–1–1 service and enhanced 9–1–1 service to its subscribers in accordance with the requirements of the Federal Communications Commission, as in effect on the date of enactment of the New and Emerging Technologies 911 Improvement Act of 2008 and as such requirements may be modified by the Commission from time to time. (b) PARITY FOR IP-ENABLED VOICE SERVICE PROVIDERS. An IP-enabled voice service provider that seeks capabilities to provide 9-11 and enhanced 9-11 service from an entity with ownership or control over such capabilities, to comply with its obligations under subsection (a), shall, for the exclusive purpose of complying with such obligations, have a right of access to such capabilities, including interconnection, to provide 9-11 and enhanced 9-11 service on the same rates, terms, and conditions that are provided to a provider of commercial mobile service . . . , subject to such regulations as the Commission prescribes under subsection (c). (c) REGULATIONS. The Commission (1) within 90 days after the date of enactment of the [NET 911 Act] shall issue regulations implementing such Act, including regulations that (A) ensure that IP-enabled voice service providers have the ability to exercise their rights under subsection (b); (B) take into account any technical, network security, or information privacy requirements that are specific 3. Stored Value Regulation: Australian Report echoes 2008 concerns of U.S. State Department for Stored Value & M-Payments – New Cross-Border Regulation to come? SYDNEY, AUSTRALIA (September 30, 2008) The Australian Institute of Criminology, a research center focusing on criminal justice, released a report “Money Laundering Risks Of Prepaid Stored Value Cards” that reaffirms concerns as to the misuse of prepaid stored value cards (SVC) to hold the cri

Table of Contents Feed for the Digital Edition of The Prepaid Press - October 15, 2008

The Prepaid Press - October 15, 2008 Oblio Wins Judgment Mobile Remittance Providers Look to Latin America Contents The Retske Report: The Game Changer Regulatory Rundown: New Rules and Requirements Likely for 2009 5 Minutes With Saul Bienenfeld, President of Pop2Call Prepaid Wireless Roundup MetroPCS Sues Virgin Mobile Wireless in Brief Leap’s Cricket Service Introduces Cricket PAYGo Virgin Mobile USA to Launch the Shuttle New Study Shows Mobile Phones Merging Roles TracFone Launches SafeLink Wireless in FL IVI and Titan Sign Agreement with YA Global Boost Mobile Launches New Phone The State of Prepaid Technology: Will the Coming Market Bring You Problems or Opportunities? Calling Cards in Brief The Legal Line Tata Awarded Cisco Powered Status IDT Fails to Meet NYSE Listing Standards BillSoft Offers New Taxation Service Dialogic to Acquire NMS Platforms Business STi Acquires Sprint’s Calling Card Business TelcoBridges Introduces ToolPack System Manager Hypercom Increases Multilane Team Mobile Banking: CGAP Spurs Market Prepaid Resources Introduces PORTABLES Bancorp and Obopay Introduce Payment Card Verities, Inc. Partners with BBB and i2c Inc. The Bancorp Bank Partners with LeagueSafe Donor Dialogue Partners with Springbok Services Mercator Offers New Merchant Report Travelex Launches Budget Calculator MPOWER Companies Join Clinton Global Initiative Payments in Brief Promotions Evolve into Must-Have Marketing Strategy for Prepaid Sector Access Launches Cash-Back Rewards VendTek Partners with United Bank Card Flash Foods, Tedeschi Partner with Pinnacle Prepaid 101: Basics of PINs Gasoline Cards to Benefit Armed Forces, Veterans i2c Inc. Signs Agreement with Diestel iPayStation Partners with Pronto Envios Sodexo Releases Prepaid Incentive Card Heartland Leverages VeriFone Managed Services Retail Focus in Brief Our Advertisers Contact Us

The Prepaid Press - October 15, 2008

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