Scott Ramminger Being Sworn In on Capitol Hill

Scott Ramminger being sworn in during testimony before the House Energy and Commerce Committee's Subcommittee on Commerce, Trade and Consumer Protection on legislation - HR3993 - entitled the "Calling Card Protection Act".
 

Ramminger with Britt McEachern

Britt McEachern, Senior Legislative Assistant to Rep. Eliot Engel (D-NY) Speaking with AWMA's Scott Ramminger, Anne Holloway, and AWMA legal counsel, John Thomas

Scott Ramminger Testifies on Capitol Hill

AWMA's Ramminger seated at left during the hearing - HR 3993 - the Calling Card Protection Act
 

Ramminger with Zack Space

Ramminger with Rep. Zack Space (D-OH))

Scott Ramminger Testifying on the Calling Card Protection Act

AWMA’s Ramminger spoke to Members of Congress on the need for improvements in this legislation which was introduced by Rep. Eliot Engel (D-NY).

Ramminger with Bobby Rush

Scott Ramminger speaking with Rep. Bobby Rush (D-IL) and Chairman of the Subcommittee on Commerce, Trade and Consumer Protection)

AWMA was invited to testify before the House Energy and Commerce Committee’s Subcommittee on Commerce, Trade and Consumer Protection on legislation – HR 3993 – entitled the “Calling Card Protection Act”.  AWMA’s President, Scott Ramminger, testified at the hearing today, Thursday, December 3rd , in the Subcommittee hearing room in the U.S. House of Representatives Rayburn Building. 

AWMA’s Ramminger spoke to Members of Congress on the need for improvements in this legislation which was introduced by Rep. Eliot Engel (D-NY).  While AMWA is supportive of the aim of the bill - protecting consumers from unfair and deceptive practices with respect to the pre-paid calling cards – certain provisions of the measure would hold distributors liable and AWMA opposes these sections of the bill.

Specifically, Ramminger spoke to lawmakers about the need for fairness in the measure stressing that under the current bill law-abiding distributors would be held liable for these fraudulent calling cards even if they were completely unaware of the discrepancy contained in the cards.  “We urge that any legislation ultimately approved by the committee include language that imposes liability for false labeling or advertising on a distributor of pre-paid calling cards only if the distributor knows of the falsity,”  Ramminger told the Subcommittee panel.   “The legislation currently before this subcommittee contains no provision providing necessary protection for the law-abiding distributor of these products.  Under the current bill – HR 3993 – a distributor would be held liable and could be punished simply by acting as conduit between the manufacturer of these pre-paid calling cards and the convenience store even if the distributor was completely unaware of the discrepancy and fraudulent nature of the calling card.  This would create an unbearable and unfair burden of liability for distributors and I urge the committee to ensure that legislation promoting consumer protection with respect to pre-paid calling cards include protections for law-abiding distributors unwittingly acting as go-between for these products.”

Ramminger also provided Subcommittee members with specific legislative language that could be adopted to make the necessary improvements to HR 3993.  Ramminger finished his remarks before the Subcommittee by telling the lawmakers, “I commend the Subcommittee for its efforts to protect consumers, however, as currently drafted, HR 3993 would unfairly penalize law-abiding distributors – many of whom represent small, family-owned businesses which are currently struggling in this economy and can ill-afford such liability.  I hope you will consider our concerns as you go forward on this important issue and I appreciate the opportunity to submit this testimony on behalf of the American Wholesale Marketers Association.” 

Ramminger also took questions from various Representatives and spoke clearly of the need for further clarification of “distributor” with respect to this legislation.  Ramminger made clear that some proponents of the bill seem to be using the term “distributor” when in fact they are actually referring to the manufacturers of these pre-paid calling cards.  Ramminger called upon the subcommittee to make clear the distinction between a distributor and a manufacturer.  

Directly following Ramminger’s testimony before the subcommittee, a staffer representing the sponsor of the measure – Rep. Engel – indicated that their office would be willing to work with AWMA to see if some agreement could be reached on this particular issue. 

The hearing in the Subcommittee marks the beginning of consideration of this measure.  The next step in the legislative process will be a mark-up of the bill and AWMA will keep members apprised of any new developments on this important issue. 

All photos by David Hathcox Photography