Subject: [NEXTEL-1] PUC SETS PROTECTION RULES FOR CONSUMERS THROUGH TELECOMMUNICATIONS BILL OF RIGHTS

From: [email-masked]
Date: Fri, 04 Jun 2004 13:11:55 -0400

PUC SETS PROTECTION RULES FOR CONSUMERS THROUGH TELECOMMUNICATIONS BILL
OF RIGHTS

SAN FRANCISCO, May 27, 2004 - The California Public Utilities Commission
(PUC) today approved telecommunications consumer protection rules
governing telephone and wireless marketing and sales practices.  "These
are landmark rules for California and ensure that telecommunications
consumers are afforded basic rights when dealing with telecommunications
companies," said Commissioner Geoffrey F. Brown, sponsor of the Bill of
Rights. "This was a long and arduous process as we tried to take into
consideration concerns from the industry while balancing the needs of
consumers. What I would consider fundamental, non-controversial rights
of consumers, even such as having a due date printed on their bills or
to credit a payment on the business day received, required negotiation
with the industry. But I believe we have provided consumers with needed
protections, while not overburdening the industry."

The rules approved today apply to all forms of telecommunications
service: local and long-distance, wireline and wireless, and prepaid
phone cards and services and 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 each case, reference to specific terms and conditions is
permitted provided that the specific document (tariff section or other
publication) containing such terms and conditions is cited in the
service agreement or contract, an Internet web site address where the
specific document can be found is provided, and printed copies of the
referenced document are available on request at no charge. If the
formulae are used to establish a rate in a term contract, that rate must
not change during the duration of the contract. In addition, carriers
must:

o 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.

o 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).

o 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: o Allow consumers to cancel without termination fees or
penalties any new tariffed 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.  o Offer a
four-hour or shorter period for appointments to establish or repair
service that the consumer must be present for.

If the installation or repair is not commenced within that period, the
carrier must provide a $25 minimum credit to the consumer unless the
appointment was missed because (1) the carrier was denied access to the
premises, (2) force majeure, or (3) the carrier cancelled or rescheduled
the appointment no later than 5 p.m. two business days prior to the
appointment.

· 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. This section of the bill
must not include any charges for which the carrier is not required to
remit to the government the entire amount collected from
customers. Carriers must not label or describe non-government fees or
charges in a way that could mislead consumers to believe those charges
are remitted to the government.

· 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. Bills must be based on the rates in effect at the time the
service was used. A bill must not include any previously unbilled charge
for intrastate service used prior to three months immediately preceding
the date of the bill, four months in the case of wireless roaming
charges on a system other than the customer's home system, and five
months for collect, third-party, and calling card calls. Any delays or
lags in billing must not result in a higher total charge (other than for
taxes, and surcharges and fees that are based on a percentage of the
bill) than if the usage had been posted to the account in the same
billing cycle in which the service was used.

· 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. No carrier-initiated change in a term
contract that may result in more restrictive terms or conditions is
enforceable unless the change is otherwise allowed by applicable law and
the change is also communicated to the consumer in a written notice 25
days prior to the change taking effect, and the consumer is provided
30 days to opt-out of the contract without a penalty.

Carriers must implement these new rules within six months, with the
exception of bill programming-related rules, which must be implemented
within 14 months.

For more information on the PUC and to view the complete Bill of Rights,
please visit www.cpuc.ca.gov.

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