The California Public Utilities Commission (PUC) approved a new “Telecom Bill of Rights” aimed at protecting consumer interests. The new rules apply to all forms of telecommunications service: local and long-distance, wireline and wireless, and prepaid phone cards and services. Key provisions of these rules include the following.
Carrier Disclosure: Service agreements or contracts may not incorporate other information by reference, except for (1) terms and conditions from PUC-approved tariffs, (2) information contained in referenced material (e.g., brochures) written in a minimum of 10-point type that is provided simultaneously with the service agreement or contract, and (3) information that is used with formulae identified in the agreement or contract in order to calculate the applicable rate or charge.
In addition, carriers must:
- Post their current tariffs, any pending changes to those tariffs, and key rates, terms and conditions on the Internet. Service offerings for which there are current customers, but which are no longer available to others, must be clearly indicated as such.
- Provide the address and toll-free telephone number of the PUC’s Consumer Affairs Branch and a toll-free number and address for the carrier that the consumer can call or write to reach the carrier regarding inquiries, disputes, and complaints related to the bill or to any other aspect of the customers’ service (in addition to third-party contact information for any charges the carrier has placed on the bill on behalf of any other entity).
- Provide a description of customers’ privacy rights and how the carrier handles confidential consumer information and information regarding state and federal laws that protect the privacy rights of residential telephone consumers with respect to telephone solicitations.
Marketing Practices: Any solicitation offer by a carrier that is deceptive, untrue, or misleading is prohibited. Statements, in any form, about rates and services that are deceptive, untrue, or misleading are prohibited. Any written authorization for service must be a separate document from any solicitation materials, and such written authorization may not constitute entry forms for sweepstakes, contests, or any other program that offers prizes or gifts. All terms of any written confirmation, authorization, order, agreement, or contract must be unambiguous and legible, and written in a minimum of 10-point type.
Service Initiation and Changes: Carriers must provide their consumers with a written confirmation of their order at the point of sale for in person transactions. For any other transactions, not later than seven days after it is accepted, or seven days after the carrier providing the service is notified of the order originated through another carrier. The confirmation must be in a minimum of 10-point type and must include the key rates, terms and conditions for each service ordered. In addition, carriers must:
- Allow consumers to cancel without termination fees or penalties any new tariff service or any new contract for service within 30 days after the new service is initiated. This does not relieve a consumer from payment for per use and normal recurring charges applicable to the service incurred before canceling, or for the reasonable cost of work done on the customer’s premises (such as wiring or equipment installation) before the consumer canceled.
- Offer a four-hour or shorter period for appointments to establish or repair service that the consumer must be present for.
Billing: Bills must be clearly organized and may only contain charges for products and services authorized by the consumer. Where charges for two or more carriers appear on the same telephone bill, the charges must be separated by service provider. This rule does not apply to wireless roaming charges. All mandated government taxes, surcharges, and fees required to be collected from consumers and to be remitted to federal, state, or local governments must be listed in a separate section of the telephone bill entitled “Government Fees and Taxes,” and all such charges must be separately itemized.
Late-Payment Penalties, Backbilling, and Prorating: Carriers must credit payments effective the business day payments are received by the carrier or its agent. The date after which a bill is considered overdue and delinquent, and after which late charges may accrue, must not be earlier than 22 days after the date the bill was mailed. Any authorized late-payment penalty may not exceed 1.5 percent per month on the balance overdue.
Tariff Changes, Contract Changes, Transfers, Withdrawals and Notices: Carriers must notify all affected consumers at least 25 days in advance of every proposed change in its consumers’ service agreements or non-term contracts that may result in higher rates or charges or more restrictive terms or conditions. http://www.cpuc.ca.gov
- In response to the vote on the “Telecom Consumer Bill of Rights” by the California Public Utility Commission, Sprint President Len Lauer said “We’re disappointed that a majority of the California PUC has chosen to move ahead with a costly and unnecessary regulatory scheme at this time. “
