FCC Updates Truth-in-Billing Rules to Combat Cramming
On April 27, the FCC released an Order adopting additional rules to help consumers detect and prevent “cramming,” the placement of unauthorized charges on a consumer’s telephone bill.
The new rules require all telecommunications common carriers to place any charges from third parties for non-telecommunications services (including Internet and video services) in a distinct section of the telephone bill separate from all carrier charges. Carriers must separately subtotal each section and clearly and conspicuously display the subtotals on the payment page of paper bills and an equivalent location on electronic bills.
Each telephone bill must also clearly and conspicuously identify any change in service provider. Carriers that allow subscribers to block third-party charges from appearing on telephone bills must clearly and conspicuously notify subscribers of this option at the point of sale, on each telephone bill, and on the carrier’s website.
Rules requiring changes to billing systems will take effect 60 days after publication of the rules in the Federal Register. Rules requiring changes to websites and points of sale operations will take effect 15 days after publication. If you have any questions regarding the Truth-in-Billing rules, please contact James Moskowitz at (202) 872-6881 or jmoskowitz@cm.chi.com or Jacob Baldwin at (312) 372-3930 or jbaldwin@cm-chi.com.