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                                                       PRINTER'S NO. 869

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 742 Session of 2003


        INTRODUCED BY McCALL, BEBKO-JONES, BELARDI, BELFANTI, BISHOP,
           BROWNE, CAWLEY, CORRIGAN, COY, CRUZ, CURRY, DALEY, DeLUCA,
           EACHUS, FREEMAN, GEIST, GEORGE, GRUCELA, HALUSKA, HARHAI,
           HENNESSEY, HORSEY, JAMES, JOSEPHS, KELLER, LaGROTTA,
           LAUGHLIN, MANDERINO, MELIO, PALLONE, PETRARCA, READSHAW,
           SAINATO, SANTONI, SATHER, SHANER, SOLOBAY, SURRA, TANGRETTI,
           THOMAS, TIGUE, WALKO, WANSACZ, WASHINGTON, WOJNAROSKI, WRIGHT
           AND YOUNGBLOOD, MARCH 6, 2003

        REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, MARCH 6, 2003

                                     AN ACT

     1  Amending the act of December 17, 1968 (P.L.1224, No.387),
     2     entitled "An act prohibiting unfair methods of competition
     3     and unfair or deceptive acts or practices in the conduct of
     4     any trade or commerce, giving the Attorney General and
     5     District Attorneys certain powers and duties and providing
     6     penalties," further providing for unfair and deceptive acts
     7     or practices by Internet access providers.

     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10     Section 1.  The act of December 17, 1968 (P.L.1224, No.387),
    11  known as the Unfair Trade Practices and Consumer Protection Law,
    12  reenacted and amended November 24, 1976 (P.L.1166, No.260), is
    13  amended by adding a section to read:
    14     Section 9.4.  Provisions Relating to Internet Access
    15  Providers.--(a)  In connection with on-line registration for
    16  Internet service, it constitutes an unfair and deceptive act or
    17  practice for an Internet access provider to:


     1     (1)  Represent that any Internet access number listed on-line
     2  as a local dial-up access number, including any 800 number, is
     3  toll-free when usage of such telephone number to access the
     4  Internet could result in toll charges or other additional fees.
     5     (2)  Cause the likelihood of confusion or of misunderstanding
     6  by directing a person registering for Internet service to use an
     7  area code to determine whether a local dial-up access number is
     8  in such person's local calling area.
     9     (3)  Cause the likelihood of confusion or of misunderstanding
    10  by directing a person registering for Internet service to call
    11  his local operator to verify that a local dial-up access number
    12  is in such person's local calling area.
    13     (4)  Fail to clearly disclose that the selection of a toll-
    14  free 800 access number to connect to the Internet will result in
    15  an additional surcharge, the amount of such surcharge, and the
    16  basis for determining the surcharge amount. Such disclosure
    17  shall be provided through a pop-up screen or any other such
    18  visual interface, which shall be displayed immediately after the
    19  800 number option is selected and which shall be designed to
    20  display a notice similar to the following:
    21                               NOTICE
    22         The selection of a toll-free 800 access number may result
    23         in an additional surcharge of (amount of surcharge). This
    24         surcharge is in addition to the monthly fee for Internet
    25         access and may be based on the hours of usage. Your
    26         completion of registration indicates that you
    27         affirmatively agree to and accept all terms and
    28         conditions relating to the usage of a toll-free 800
    29         access number to connect to the Internet. If you do not
    30         accept the terms and conditions governing the selection
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     1         of a toll-free 800 access number, STOP! CLICK "CANCEL!"
     2         DO NOT COMPLETE THIS REGISTRATION!
     3     (5)  Fail to clearly and completely disclose the terms and
     4  conditions of an on-line access agreement to any person
     5  registering on-line for Internet access service before on-line
     6  registration is completed.
     7     (6)  Fail to secure in writing a person's affirmative
     8  acceptance of the terms and conditions of an Internet access
     9  agreement within thirty business days of completion of on-line
    10  registration.
    11     (b) (1)  The Office of Attorney General shall enforce the
    12  provisions of this section. All remedies, penalties and
    13  authority granted to the Attorney General or to the appropriate
    14  District Attorney, acting in the name of the Commonwealth of
    15  Pennsylvania, under this act shall be available for the
    16  enforcement of this section.
    17     (2)  In any action brought by the Attorney General or the
    18  appropriate District Attorney to enforce this section, the court
    19  may order that the person who incurred actual damages be awarded
    20  double the amount at which actual damages are assessed.
    21     (3)  Any person who incurs actual damages as a result of the
    22  use of an act or practice declared unlawful under subsection (a)
    23  may bring a private action to recover actual damages in
    24  accordance with section 9.2.
    25     (4)  In addition to any other penalties provided under this
    26  act, a person who uses or employs any act or practice declared
    27  unlawful under subsection (a) shall be subject to a civil
    28  penalty of up to $2,000 for each violation.
    29     (c)  As used in this section:
    30     "Access provider" means an entity that arranges for an
    20030H0742B0869                  - 3 -     

     1  individual, organization or business to have access to the
     2  Internet. Access providers are generally divided into two
     3  classes: Internet service providers and on-line service
     4  providers.
     5     "Area code" means a three-digit number identifying a specific
     6  geographic area of the United States which permits direct
     7  distance dialing on the telephone system.
     8     "Internet service provider" means a service provider that has
     9  its own network (or leases) to which end-users dial into to
    10  connect to the Internet usually for a fee.
    11     "Local calling area" means a geographic area within which
    12  subscribers may make telephone calls without assessment of toll
    13  charges.
    14     "Local dial-up access number" means a telephone number used
    15  to make a temporary connection between two computers to connect
    16  to the Internet usually through the use of a modem and which is
    17  usually described as being in a specific local calling area.
    18     "On-line service provider" means an interactive computer
    19  service such as RoadRunner, @Home, or AOL, which provides
    20  subscribers with proprietary information or content as well as
    21  access to the Internet usually for a fee.
    22     "Pop-up screen" means a graphical user interface display
    23  area, usually a small window, which is timed to appear ("pop
    24  up") in the foreground of the visual interface.
    25     "Toll-free 800 access number" means a telephone number which
    26  enables a caller to dial a long distance telephone number
    27  without incurring a charge for the call, which is paid for by
    28  the party offering the 800 number, but which when used to access
    29  the Internet, may result in a surcharge based on the hours of
    30  usage or some other set fee.
    20030H0742B0869                  - 4 -     

     1     Section 2.  This act shall take effect immediately.




















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