Md. Code, Com. § 14-1322

Current with changes from the 2024 Legislative Session
Section 14-1322 - Third-party vendor billing
(a)
(1) In this section the following words have the meanings indicated.
(2) "Billing agent" means a person that submits charges for products or services to a telephone company or reseller on behalf of the person submitting the charges or on behalf of a third-party vendor.
(3) "Customer" means a customer of a telephone company or reseller.
(4) "Express authorization" means an express, affirmative act by an ordering customer in the form of:
(i) A written authorization;
(ii) An oral authorization verified and recorded by an independent party; or
(iii) A recorded electronic authorization.
(5) "Ordering customer" means a customer or another person ordering services that will appear on the customer's telephone bill.
(6) "Reseller" means a person that provides wireline telephone voice service by using the transmission facilities of another person.
(7) "Telephone company" means a person that provides wireline telephone voice services.
(8) "Third-party vendor" means an entity not affiliated with a telephone company or reseller that:
(i) Provides products or services to a customer; and
(ii) Seeks to charge the customer through third-party vendor billing.
(9)
(i) "Third-party vendor billing" means the use of a telephone company's or reseller's billing system, either directly or through a billing agent, to charge a customer for products or services provided by a third-party vendor.
(ii) "Third-party vendor billing" does not include billing for:
1. Products or services offered by, or bundled with the products or services of, a telephone company, a reseller, or an affiliate of a telephone company or reseller;
2. Long distance services that a customer initiates by dialing 1+, 0+, 0-, or 1010XXX; or
3. Commercial mobile radio services.
(b) Unless the third-party vendor or billing agent first obtains an ordering customer's express authorization, a third-party vendor or billing agent may not submit charges to a telephone company or reseller.
(c) The express authorization required under subsection (b) of this section shall:
(1) Be separate from any solicitation material or entry forms for sweepstakes or contests; and
(2) Include:
(i) The name and telephone number of the ordering customer;
(ii) The date of authorization;
(iii) An explanation of:
1. The product or service offered; and
2. All applicable charges; and
(iv) An affirmation by the ordering customer that:
1. The ordering customer is at least 18 years of age and authorized to order services that will appear on the customer's telephone bill; and
2. Third-party vendor billing charges may be billed using the customer's telephone bill.
(d) A third-party vendor or billing agent shall retain a copy of the express authorization required under subsection (b) of this section for 2 years after the date of authorization.
(e) A customer is not liable for third-party vendor billing charges unless:
(1) The customer has been given notice that the telephone company or reseller may allow third-party vendor billing and that free blocking of certain third-party vendor billing may be available to the customer; and
(2) The customer is provided access to:
(i) An itemization of the third-party vendor billing charges identifying them separately from other charges; and
(ii) The name and telephone number of the third-party vendor or its billing agent.
(f) Unless the third-party vendor or billing agent provides a copy of the authorization required under subsection (b) of this section to the customer and to the telephone company or reseller, a customer is not liable for third-party vendor billing charges if the customer, in good faith and in a reasonably timely manner, but not outside the time period specified in subsection (d) of this section, disputes that the charges were authorized.
(g) An agreement for third-party vendor billing entered into by a telephone company or reseller and a third-party vendor or billing agent on or after October 1, 2010, is void and unenforceable to the extent that it does not require the third-party vendor to comply with subsection (b) of this section.
(h) A violation of this section by a third-party vendor or billing agent:
(1) Is an unfair or deceptive trade practice under Title 13 of this article; and
(2) Except for the provisions of § 13-411 of this article, is subject to the enforcement and penalty provisions contained in Title 13 of this article.

Md. Code, CL § 14-1322