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Title 15 — Commerce and TradeRelease 119-73

§5721 Regulations

Title 15 › Chapter CHAPTER 83— - TELEPHONE DISCLOSURE AND DISPUTE RESOLUTION › Subchapter SUBCHAPTER II— - BILLING AND COLLECTION › § 5721

Last updated Apr 6, 2026|Official source

Summary

The Commission must make rules for fixing billing mistakes on telephone-billed purchases and must stop unfair tricks that try to get around those rules. The rules must be much like the ones used for credit card billing disputes under the Truth in Lending and Fair Credit Billing laws. Breaking these rules counts as an unfair or deceptive practice, and phone carriers are covered by the Commission’s authority for this part of the law. The Commission must issue the rules within 270 days after October 28, 1992, using the normal federal rulemaking process. When writing the rules, the Commission must consider things such as how a customer starts a review, how billers and carriers respond, delivery and investigation issues, limits on carrier duties, setting aside charges, limits on collections, effects on credit reports, quick posting of credits, customer and carrier rights, and whether the rules should differ from the Truth in Lending rules to protect customers and be cost effective.

Full Legal Text

Title 15, §5721

Commerce and Trade — Source: USLM XML via OLRC

(a)(1)The Commission shall, in accordance with the requirements of this section, prescribe rules establishing procedures for the correction of billing errors with respect to telephone-billed purchases. The rules prescribed by the Commission shall also include provisions to prohibit unfair or deceptive acts or practices that evade such rules or undermine the rights provided to customers under this subchapter.
(2)The Commission shall promulgate rules under this section that impose requirements that are substantially similar to the requirements imposed, with respect to the resolution of credit disputes, under the Truth in Lending and Fair Credit Billing Acts [15 U.S.C. 1601 et seq., 1666 et seq.].
(3)A rule issued under paragraph (1) shall be treated as a rule issued under section 57a(a)(1)(B) of this title.
(b)The Commission shall prescribe the rules under subsection (a) within 270 days after October 28, 1992. Such rules shall be prescribed in accordance with section 553 of title 5.
(c)Any violation of any rule prescribed under subsection (a) shall be treated as a violation of a rule under section 45 of this title regarding unfair or deceptive acts or practices. Notwithstanding section 45(a)(2) of this title, communications common carriers shall be subject to the jurisdiction of the Commission for purposes of this subchapter.
(d)In prescribing rules under this section, the Commission shall consider, with respect to telephone-billed purchases, the following:
(1)The initiation of a billing review by a customer.
(2)Responses by billing entities and providing carriers to the initiation of a billing review.
(3)Investigations concerning delivery of telephone-billed purchases.
(4)Limitations upon providing carrier responsibilities, including limitations on a carrier’s responsibility to verify delivery of audio information or entertainment.
(5)Requirements on actions by billing entities to set aside charges from a customer’s billing statement.
(6)Limitations on collection actions by billing entities and vendors.
(7)The regulation of credit reports on billing disputes.
(8)The prompt notification of credit to an account.
(9)Rights of customers and telephone common carriers regarding claims and defenses.
(10)The extent to which the regulations should diverge from requirements under the Truth in Lending and Fair Credit Billing Acts [15 U.S.C. 1601 et seq., 1666 et seq.] in order to protect customers, and in order to be cost effective to billing entities.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Truth in Lending Act, referred to in subsecs. (a)(2) and (d)(10), is title I of Pub. L. 90–321, May 29, 1968, 82 Stat. 146, which is classified generally to subchapter I (§ 1601 et seq.) of chapter 41 of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 1601 of this title and Tables. The Fair Credit Billing Act, referred to in subsecs. (a)(2) and (d)(10), is title III of Pub. L. 93–495, Oct. 28, 1974, 88 Stat. 1511, which is classified principally to part D (§ 1666 et seq.) of subchapter I of chapter 41 of this title. For complete classification of this Act to the Code, see

Short Title

of 1974 Amendment note set out under section 1601 of this title and Tables.

Reference

Citations & Metadata

Citation

15 U.S.C. § 5721

Title 15 — Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73