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Proposed Rules Would Help Callers Hang Up on High Rates

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Times Wire Services

Federal regulators proposed tougher rules Thursday to protect people from exorbitant pay phone charges.

The Federal Communications Commission recommended requiring long-distance companies whose rates are 15% above an average charged by the three biggest companies--AT&T;, MCI and Sprint--to disclose price information on a voice message before calls can be connected.

The proposal would apply to companies that provide service to pay phones, hotel phones and other public phones. The FCC is also considering whether all long-distance companies should be required to make such price disclosures.

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“Our job is to inform and protect consumers,” FCC Chairman Reed Hundt said. “Today’s proposal would give consumers the information they need to hang up on high rates. And once consumers let their fingers do the talking, we may see rates do some walking--down.”

Last year, 24 states asked the FCC to require companies to disclose prices after they were deluged with complaints. State attorneys general hailed the FCC’s proposal as a much-needed consumer protection.

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