FTC renews paperwork chase for phone billing rules
Published Date: 1/21/2025
Notice
Summary
The Federal Trade Commission wants to keep collecting info about pay-per-call services for three more years to protect consumers from surprise charges and unfair practices. This affects phone companies and businesses using these services, ensuring they follow clear rules about costs and disputes. Comments on this plan are open until February 20, 2025, with no new fees involved.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 2 costs, 0 mixed.
Vendors and Billers Face Large Disclosure Burden
The FTC is seeking a three-year extension of the Pay-Per-Call information collection that requires vendors and billing entities to keep making disclosures. The rule’s disclosure burden totals 949,512 hours annually (broken down across advertising, preamble disclosures, billing statements, dispute procedures, and consumer billing-error reporting) and the estimated annual labor cost is $49,402,048.
Consumers Keep Protections Against Surprise Charges
The Pay-Per-Call Rule’s disclosure requirements tell consumers about the costs of pay-per-call services, confirm they won’t be liable for unauthorized non-toll charges on their phone bills, and explain how to dispute telephone-billed purchases. The FTC says these disclosures will continue as the agency seeks a three-year extension of the information collection (current clearance expires January 31, 2025).
Telecom Carriers Have Reporting Requirement
Telecommunications common carriers remain subject to a reporting requirement under the Pay-Per-Call Rule that the FTC seeks to extend for three years. The estimated annual reporting burden for common carriers is 24 hours.
FTC Uses Collected Data for Law Enforcement
The FTC states that information obtained from the Pay-Per-Call reporting requirement is used for law enforcement purposes. The agency is requesting a three-year extension of the clearance that expires January 31, 2025.
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Key Dates
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