Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, March 15, 1991                   TAG: 9103150141
SECTION: BUSINESS                    PAGE: A7   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

FCC OFFERS TIGHTER RULES ON 900 CALLS

All five commissioners favored the proposal, although a majority said they want to be careful not to hurt legitimate businesses.

The industry's trade association opposes some portion of the rules, while agreeing that something must be done to weed out companies that use 900 numbers to take advantage of consumers.

"We think it is appropriate for the FCC to look at this," said Steve Metalitz of the Information Industry Association.

Interested parties will be allowed to comment on the proposed rules before the commission makes a final decision.

The action was promoted by the increasing number of complaints lodged against 900 services. Richard Firestone of the FCC's common carrier bureau said the agency has received about 2,000 complaints over the past two years.

The 900 industry is only about 10 years old but has grown rapidly in the past three years. FCC officials said the industry's revenues are expected to top $1 billion this year.

Uses of 900 numbers range from fund-raising to giving stock quotes, crossword puzzle solutions and sports scores to providing used-car repair records.

But the numbers have been used increasingly by companies that promise consumers credit cards and loans and offer chat lines for adults and youth.

Under the FCC's proposal:

Each call to a 900 number would begin with an introductory message that said how much the call costs and warn children under 18 that they must have parental permission to make the call. Callers would be allowed to hang up before charges began.

Local telephone companies would have to offer free blocking of 900 calls at a customer's request unless the company had older equipment that couldn't block the calls.

Telephone companies could not disconnect a customer's telephone service for non-payment of 900 charges.

Bills pending in both houses of Congress also would regulate the 900 industry, but Firestone said the FCC proposal is not as far-reaching as any legislative plan. During a hearing before a House subcommittee earlier this month, witnesses told of 900 phone bills ranging into the thousands of dollars.

The Information Industry Association opposes the introductory message. Metalitz said there are "far better ways to inform consumers about the charges for 900 numbers and what they're getting for their dollar" - including educating consumers before they make the call about the nature of 900 service and disclosing the prices in advertising.

"They should be informed consumers before they pick up the phone," he said.