Current through Reg. 50, No. 13; March 28, 2025
(a) Purpose. The
provisions of this section are intended to prescribe standards for the
information a prepaid calling services provider must disclose to customers
regarding the rates and terms of service for prepaid calling services offered
in this state.
(b) Application.
This section applies to any "telecommunications utility" as defined by §
26.5 of this title, relating to
Definitions. This section does not apply to a deregulated company holding a
certificate of operating authority, or to an exempt carrier utility that meets
the criteria of Public Utility Regulatory Act (PURA) §52.154. This section
also does not apply to a credit calling card in which a customer pays for a
service after use and receives a monthly bill for such use.
(c) Liability. A prepaid calling services
company is responsible for ensuring, either through its contracts with its
network provider, distributors and marketing agents or other means, that:
(1) end-user purchased prepaid calling
service remains usable in accordance with the requirements of this section;
and
(2) compliance requirements of
all disclosure provisions of this section are met.
(d) Definitions. The following terms used in
this section have the following meanings, unless the context indicates
otherwise:
(1) Access telephone number--The
number that allows a prepaid calling services customer to access the services
of a telecommunications utility to place telephone calls.
(2) Billing increment--A unit of time used to
charge customers for prepaid calling services.
(3) Personal identification number (PIN)--A
number assigned as an authorization code that ensures system security for a
prepaid calling services customer and allows the prepaid calling services
company to track minutes used.
(4)
Prepaid calling services account--An amount of money paid by a customer in
advance to access the services of a telecommunications utility to place
telephone calls. When the customer makes completed telephone calls, the value
of the account decreases at a predetermined rate.
(5) Prepaid calling card--A card or any other
device purchased to establish a prepaid calling services account.
(6) Prepaid calling services--Any
telecommunications transaction in which:
(A) a
customer pays in advance for telecommunications services;
(B) the customer's prepaid calling services
account is depleted at a predetermined rate as the customer uses the service;
and
(C) the customer must use a PIN
and an access telephone number to use the telecommunications
services.
(7) Prepaid
calling services company--A company that provides prepaid calling or other
telecommunications services to the public using its own telecommunications
network or resold telecommunications services, or distributors who purchase
PINs or telecommunications services to resell to the end-user
customer.
(8) Recharge--A
transaction in which the value of the prepaid calling services account is
renewed. The customer must be informed verbally or electronically of the new
rates and surcharges at the time of recharge.
(9) Surcharge--any fee or cost charged
against a prepaid calling services account in addition to a per-minute rate or
billing increment including connection, payphone, and maintenance
fees.
(e) Billing
requirements for prepaid calling services.
(1)
Billing increments must be defined and disclosed in the prepaid calling
services company's published tariffs or price list on file with the commission,
on any display at the point of sale, on any prepaid calling card, or on any
prepaid calling card packaging.
(2)
A prepaid calling services account may be decreased only for a completed call.
Station busy signals and unanswered calls are not completed calls and must not
be charged against the account.
(3)
A surcharge must not be levied more than once on a given call.
(4) Prepaid calling services companies must
not reduce the value of a prepaid calling services account by more than the
company's published domestic tariffs or price list on file with the commission
and any surcharges filed at the commission. Domestic rates and surcharges must
be disclosed at the time of purchase. Current international rates must be
disclosed at the time of purchase with an explanation, if applicable, that
these prices may be subject to change.
(5) The prepaid calling services account may
be recharged by the customer at a different domestic rate from the original
domestic rate or the last domestic recharge rate provided that the new domestic
rate and any domestic or international surcharges conform with the company's
published tariff or price list on file with the commission at the time of
recharge. The customer must be informed of the rates at the time of recharge. A
prepaid calling services company must keep internal records of changes to its
international rates and must provide customers with the appropriate
international rate information through a toll-free telephone number.
International prepaid calling services rates must be updated annually in
accordance with §
26.89 of this title, relating to
Information Regarding Rates and Services of Nondominant Carriers.
(6) Upon verbal or written request, prepaid
calling services companies must be capable of providing a customer the
following call detail data information at no charge:
(A) Dialing and signaling information that
identifies the inbound access telephone number called;
(B) The number of the originating
telephone;
(C) The date and time
the call originated;
(D) The date
and time the call terminated;
(E)
The called telephone number; and
(F) The PIN or account number associated with
the call.
(7) Prepaid
calling services companies must maintain call detail data records for at least
two years.
(f) Written
disclosure requirements for all prepaid calling services.
(1) Information required on prepaid calling
cards. Cards must be issued with all information required by subparagraphs (A)
and (B) of this paragraph in at least the same language in which the card is
marketed. Bilingual cards are permitted provided that the information required
by subparagraphs (A) and (B) of this paragraph is printed in both languages.
(A) At a minimum, a card must contain the
following information printed in a legible font no smaller than eight-point:
(i) The toll-free number as required by
subsection (i) of this section;
(ii) The maximum rate per minute must be
shown for local, intrastate, and interstate calls. International call prices
must be provided to the customer through a toll-free number printed on the
card. If the cost for a one minute call is higher than the maximum rate per
minute, it must be printed on the prepaid calling card; and
(iii) The words "VOID" or "SAMPLE" or
sequential numbers, such as "999999999" on both sides of the card if the card
was produced as a "non-active" card so that it is obvious to the customer that
the card is not useable. If the card is not so labeled, the card is considered
active and the issuing company must honor it.
(B) At a minimum, a card must contain the
following information printed in legible font no smaller than five-point:
(i) The value of the card and any applicable
surcharges must be expressed in the same format such as a card whose value is
expressed in minutes must express surcharges in minutes. If the value of a card
is expressed in minutes, the minutes must be identified as domestic or
international and the identification must be printed on the same line or next
line as the value of the card in minutes;
(ii) The prepaid calling services company's
name as registered with the commission. A "doing business as" name may only be
used if officially filed with the commission. The language must clearly
indicate that the company is providing the prepaid calling services;
(iii) Instructions on using the card
correctly; and
(iv) Expiration date
or policy, if the card cannot be used after a date certain. If an expiration
date or policy is not disclosed on the card, it will be considered active
indefinitely.
(2) Information required at a point of sale.
All the following information must be legibly printed on or in any packaging in
a minimum eight point font and displayed visibly in a prominent area at the
point of sale so that the customer may make an informed decision before
purchase. Bilingual information may be made available provided that the
information in subparagraphs (A)-(I) of this paragraph is printed in both
languages.
(A) A listing of applicable
surcharges;
(B) The company's name
as registered with the commission. A "doing business as" name may only be used
if officially filed with the commission. The language must clearly indicate
that the company is providing the prepaid calling card services;
(C) The toll-free number as required by
subsection (i) of this section;
(D)
The billing increment expressed in minutes or fractions of minutes and maximum
charge per billing increment for prepaid calling card services for local,
intrastate, interstate, and international calls will be provided to the
customer through a toll-free number printed on the card;
(E) The expiration policy, if the card cannot
be used after a date certain. If an expiration date is not disclosed at the
time of purchase, the prepaid calling services will be considered active until
the prepaid calling services account is completely depleted;
(F) The recharge policy, if applicable. If an
expiration date is not disclosed at the time prepaid calling services are
recharged, the services will be considered active until the prepaid calling
services account is completely depleted;
(G) The policy for rounding billing
increments, if applicable;
(H) A
statement that if a customer is unable to resolve a complaint with the company
that the customer has the right to contact the state regulatory agency which
has jurisdiction within the state where the prepaid calling services were
purchased; and
(I) A statement
that:
(i) Notifies a customer of the
customer's extent of liability for lost or stolen cards, if there is liability;
and
(ii) Warns a customer to
safeguard the card against loss or theft.
(3) If a customer asks a prepaid calling
services company how to file a complaint, the company must provide the
following contact information: PUCT, Consumer Protection Division, P.O. Box
13326, Austin, Texas 78711-3326; phone: (512) 936-7120 or in Texas (toll-free)
1-888-782-8477;; e-mail address: consumer@puc.texas.gov; Internet address:
www.puc.texas.gov; and Relay Texas
(toll-free): 1-800-735-2989.
(g) Verbal disclosure requirements for
prepaid calling services. Prepaid calling services companies must provide an
announcement:
(1) At the beginning of each
call indicating the domestic minutes, billing increments, or dollars remaining
on the prepaid calling services account or prepaid calling card; and
(2) When the prepaid account or card balance
is about to be completely depleted. This announcement must be made at least one
minute or billing increment before the time expires.
(h) Registration requirements for prepaid
calling services companies. All prepaid calling services companies must
register with the commission in accordance with §
26.107 of this title (relating to
Registration of Interexchange Carriers (IXCs), Prepaid Calling Services
Companies (PPC), and Other Nondominant Telecommunications Carriers.
(i) Business and technical assistance
requirements for prepaid calling services companies. A prepaid calling services
company must provide a toll-free number with a live operator to answer incoming
calls 24 hours a day, seven days a week or electronically voice record customer
inquiries or complaints. A combination of live operators or recorders may be
used. If a recorder is used, the prepaid calling services company must attempt
to contact each customer no later than the next working day following the date
of the recording. Personnel must be sufficient in number and expertise to
resolve customer inquiries and complaints. If an immediate resolution is not
possible, the prepaid calling services company must resolve the inquiry or
complaint by calling the customer or, if the customer requests, in writing
within ten working days of the original request. In the event a complaint
cannot be resolved within ten days of the request, the prepaid calling services
provider must advise the complainant in writing of the status and subsequently
complete the investigation within 21 days of the original request.
(j) Requirements for refund of unused
balances. If a prepaid calling services company fails to provide service at the
rates disclosed at the time of initial purchase or at the time an account is
recharged, or fails to meet technical standards, the prepaid calling services
company must either refund the customer for each unused prepaid calling service
or provide equivalent service.
(k)
Requirements when a prepaid calling services company terminates operations in
this state.
(1) When a prepaid calling
services company expects to terminate operations in this state for any reason,
the company must at least 30 days prior to the termination of operations:
(A) Notify the commission in writing:
(i) That operations will be ending;
(ii) Of the date of the termination of
operations; and
(iii) That the
company certifies that the actions required by this subsection have been
completed;
(B) Notify
each customer at the address on file with the company, if applicable, that
operations will be ending the date of the termination of operations, and
explain how customers may receive a refund or equivalent services for any
unused services;
(C) Announce the
termination of operations at the beginning of each call, including the date of
termination and a toll-free number to call for more information; and
(D) Provide to customers via its toll-free
customer service number the procedure for obtaining refunds and continue to
provide this information for at least 60 days after the date the company
terminates operations.
(2) Within 24 hours after ceasing operations,
the prepaid calling services company must deliver to the commission a list of
names, if known, and account numbers of all customers with unused balances. For
each customer, the list must include the following:
(A) The identification number used by the
company for billing and debit purposes; and,
(B) The unused time, stated in minutes, as
applicable, and the unused dollar amount of the prepaid calling services
account.
(l)
Date of compliance for prepaid calling card services companies. Prepaid calling
service offered for sale in the state of Texas and each prepaid calling
services company must be in compliance with this rule within six months of the
effective date of this section.
(m)
Compliance and enforcement.
(1) Administrative
penalties. If the commission finds that a prepaid calling services company has
violated any provision of this section, the commission will order the company
to take corrective action, as necessary, and the company may be subject to
administrative penalties and other enforcement actions under PURA, Chapter
15.
(2) Enforcement. The commission
will coordinate its enforcement efforts against a prepaid calling services
company for fraudulent, unfair, misleading, deceptive, or anticompetitive
business practices with the Office of the Attorney General to ensure consistent
treatment of specific alleged violations.
