Telecom Law Monitor : Washington D.C. Telecom Lawyer & Attorney : Kelley Drye & Warren Law Firm : New York, Chicago, Connecticut, New Jersey, Brussels

The House Energy and Commerce Committee, Subcommittee on Commerce, Trade and Consumer Protection, will hold a hearing today on the "Calling Card Consumer Protection Act of 2009" (HR 3993).  The bill would require prepaid calling card providers and their distributors to disclose all applicable rates and other terms and conditions to consumers.  The FTC would be empowered to enforce the requirements, including against common carrier prepaid card providers.

Rep. Engel (D-NY) introduced the bill on November 3, 2009.  This is the first hearing on the bill.

Scheduled witnesses today will be:

• Lois Greisman, Director, Division of Marketing Practices, Federal Trade Commission
• Sally Greenberg, Executive Director, National Consumers League
• Patricia Acampora, Commissioner, New York State Public Service Commission, National Association of Regulatory Utility Commissioners
• Alie Kabba, Executive Director, United African Organization
• Scott Ramminger, President, American Wholesale Marketers Association

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On July 22, 2009, the Senate Commerce, Science, and Transportation Committee’s Subcommittee on Consumer Protection, Product Safety, and Insurance held a hearing on advertising trends and consumer protection. David Vladeck, Director of the Federal Trade Commission’s Bureau of Consumer Protection testified before the Subcommittee, as well as various industry and consumer advocacy representatives.  The hearing focused primarily on Vladeck’s testimony, in which he outlined the FTC’s proposed revisions to its guidelines for testimonials, endorsements, and green marketing. 

Those speaking on behalf of consumer advocate groups applauded the FTC’s plans to strengthen its advertising guidelines, while industry representatives raised concerns about the burdens imposed by the revisions, specifically those related to the safe harbor provision for atypical result testimonials. Subcommittee members generally agreed with the FTC and consumer advocacy representatives that consumers need more protection from deceptive marketing practices, but they have not reached a consensus on the extent to which the FTC should regulate advertisers. More details on each of these issues are provided in this advisory, authored by Kelley Drye partner Reed Freeman and associate Alysa Z. Hutnik.

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FCC Chairman Genachowski today announced that Austin Schlick will become the next General Counsel of the FCC and that Steven VanRoekel will be its new Managing Director. Mr. Schlick has previously served at the FCC, at the Department of Justice (where he argued seven cases to the Supreme Court), as a legislative assistant to a Senator, in private practice, and he has clerked for the U.S. Supreme Court (Justice O’Connor). Mr. VanRoekel has spent 15 years at Microsoft, including serving as Speech and Strategy Assistant to Bill Gates.

In addition, the Senate Commerce, Science and Transportation Committee has scheduled a hearing for Wednesday, July 15 on the nominations of Mignon Clyburn (D) and Meredith Baker (R) for the remaining two FCC Commissioner slots. The hearing is expected to be non-controversial and, when completed, will put the FCC at full force for the first time this year.

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