Proposed PUC Rules

Rule 1:  Carrier Disclosure

(a)  Every carrier offering tariffed services whose annual gross intrastate revenues, as defined in Public Utilities Code Section 435(c) and reported to the Commission for purposes of the Utilities Reimbursement Account exceed $10 million, shall publish, and shall thereafter keep up to date, its currently effective California tariffs on a World Wide Web site on the Internet.

1. This requirement derives from D.01-07-026, which the Commission issued in anticipation of issuing a new General Order 96-B.  Carriers subject to the Internet publishing requirement of that decision (or, when it is issued, General Order 96-B) must meet the associated requirements of that decision and general order as well (e.g., the site must be accessible and the tariffs downloadable at no charge; the site must be kept updated and indicate pending changes, etc.).
2. Each carrier exceeding the revenue threshold of this Rule 1(a) in its last annual report to the Commission was required to meet the World Wide Web site publication requirement not later than January 1, 2002.  Carriers first exceeding the revenue threshold in later years must meet the requirement not later than 180 days after the due date to file their first annual report to the Commission showing they have crossed the $10 million threshold.

(b)  Every carrier that meets the $10 million revenue threshold of Rule 1(a) above, shall publish on a World Wide Web site on the Internet, and shall thereafter keep up to date, the rates, terms and conditions of each non-tariffed offering subject to the Commission’s jurisdiction that it is currently providing or offering to provide to individual subscribers or small businesses in California.

1. Service offerings for which there are current subscribers, but which are no longer available to others, must be clearly indicated as such.
2. Descriptions of the service rates, terms and conditions published under this Rule 1(b) are considered solicitations and must meet the other requirements applicable to solicitations under these Consumer Protection Rules.
3. Carriers subject to this Internet publishing requirement must meet the other Internet publishing requirements of D.01-07-026 (or, when it is issued, General Order 96-B) as well (e.g., the site must be accessible and the tariffs downloadable at no charge; the site must be kept updated and indicate pending changes, etc.).
4. Each carrier exceeding the revenue threshold of this Rule 1(b) in its annual report to the Commission covering calendar year 2001 must meet the World Wide Web site publication requirement not later than January 1, 2003.  Carriers first exceeding the revenue threshold in later years must meet the requirement not later than 180 days after the due date to file their first annual report to the Commission showing they have crossed the $10 million threshold.

 (c)  Every carrier shall provide the following upon request by any user or subscriber, including any former subscriber for whom, in the judgment of either the carrier or the subscriber, charges or credits are still pending:

1. A description of each service for which charges appear(ed) on the subscriber’s bill, and the rates, terms and conditions applicable to that service.
2. A toll-free telephone number the subscriber may call to reach the carrier, and the carrier’s post office address to which the subscriber may write, for inquiries, disputes or complaints related to the bill or to any other aspect of the subscriber’s service.
3. For any charges the carrier has placed on the bill on behalf of any other entity, but for which the carrier does not handle inquiries, disputes and complaints:  the name of the other entity, a toll-free telephone number the subscriber may call, and a post office address to which the subscriber may write, for inquiries, disputes or complaints related to those charges.

[Comment:  The rules in Part 3 take precedence over these Part 2 rules whenever there is a conflict between them and the charges are for non-communications related charges.]

(d)  Every carrier shall provide the following upon request by any subscriber or other member of the public:

1. The carrier’s legal name, its utility registration number (Cal. PUC U‑number), and all names (dba’s) under which the carrier offers regulated telecommunications service in California.
2. A description of any service offerings currently open to individual or small business subscribers in California, and the applicable rates, terms and conditions.
3. The address and toll free telephone number of the Commission’s Consumer Affairs Branch.
4. An explanation of customers’ privacy rights and how the carrier handles confidential subscriber information.

[Comment:  The information provided in response to this Rule 1(d) (4) must meet the requirements of Rule 12(d), Required Notice of Privacy Rights.  See Rule 12 for a specific explanation of disclosure requirements regarding privacy rights.

Under Rules 1(c) and 1(d) above:

1. Carriers, and those entities to whom carriers refer requests, must arrange to accept all requests within a reasonable time and without excessive waiting intervals or rejections for lack of staffing or facilities.  As a guideline, the telephone lines used to take subscriber inquiry, complaint, dispute and repair calls should give access to a carrier representative as quickly and reliably as lines the carrier provides for receiving incoming sales calls.
2. Timeliness in providing responses is particularly important for responses to be useful.  Absent extraordinary circumstances, carriers must be able to provide real-time responses with Rule 1(c) (2) Rule 1(c) (3), Rule 1(d) (3) information, and at least mailed-next-business-day responses for Rule 1(c) (1), Rule 1(d) (1), Rule 1(d) (2), and Rule 1(d) (4) information.
3. Responses must be provided in writing if so requested, or by other method mutually acceptable to both the requestor and carrier.

(e)  Carriers providing basic service shall include, at a minimum and in addition to subscriber listing information, the following emergency and customer disclosure information in the alphabetical telephone directories they provide to their customers:

1. The procedures which the carrier will follow during emergencies.
2. How telephone subscribers can best use the telephone network in an emergency situation.
3. The emergency services available by dialing 911.
4. Information regarding state and federal laws that protect the privacy rights of residential telephone subscribers with respect to telephone solicitations.
5. Telephone number(s) to contact the carrier for any purpose related to a customer’s account or service.
6. Instructions for reaching an operator and directory assistance.
7. Basic service rates and information, including those for Universal Lifeline Telephone Service.
8. The carrier’s prefixes within the directory boundaries; where each is located; and for each prefix, a list of all other prefixes which can be reached as a local call.
9. A map of California Local Access and Transport Areas (LATAs) and their locations.
10. A list of area codes (North American Numbering Plan areas) and their locations.
11. A list of international dialing codes, and instructions for making international calls.
12. Accessibility information for non-English speaking and deaf and disabled customers.
13. For carriers having tariffs or other customer disclosure information on the Internet, the carrier’s Internet address for accessing that information.
14. A Commission-provided summary of the consumer protection measures provided in this General Order, and the Commission’s Internet address where this General Order is posted.
15. Information explaining the availability and effect of Caller ID blocking options.

(f) No basic service provider shall reduce the level of customer information included in an alphabetical telephone directory without first obtaining authorization from the Commission to do so.

(g)  Rates, terms and conditions included in service agreements or contracts or provided in required responses to public inquiries may not incorporate other information by reference.  Formulae may be used to calculate rates or charges only where all necessary components are readily ascertainable by the consumer or subscriber.

Rule 2:  Marketing Practices

  (a)   All written solicitations by carriers or their agents provided to consumers or subscribers shall be unambiguous, legible and in the equivalent of 10-point type or larger.

[Comment:  Members of the public must be able to read and understand the essential elements of advertisements and offers directed at them, through whatever medium.  The intent of this rule would be violated, e.g., in a newspaper advertisement or in a brochure by too-fine print which purports to convey details that a reasonable consumer would believe important to the offer, or by a lengthy qualifier message flashed briefly on a television screen even if the message were otherwise legible.]

(b)  Any agreement or contract the consumer or subscriber may execute shall be a separate document from any marketing materials used to promote telecommunications products or services.

[Comment:  Any service agreements or contracts presented to consumers must be unencumbered by materials, such as advertising, which may distract or obscure.  Only the elements of the transaction belong in binding agreements.]

(c) All terms of any agreement or contract shall be plainly stated in understandable language.  Agreements, contracts, bills and notices shall be available in each language employed by the carrier in solicitations directed at consumers.

[Comment:  Any service agreements or contracts presented to consumers must be as simple and understandable as possible to accommodate consumers with widely varying degrees of sophistication.  Stating terms of an agreement or contract in language too complex or legalistic to be readily understood by most consumers would violate the intent of this rule.  Similarly, consumers must have available to them service agreements and contracts in any language the carrier uses for advertising, telephone sales or order-taking representatives, and any other form of solicitation.]  

(d)  Solicitations, including advertising and other marketing materials, shall include clear, conspicuous and accurate disclosure of applicable rates, terms and conditions for each service offered in the solicitation.  Solicitations shall be truthful and not misleading.

[Comment:  See Definitions for “rates.”]

1. A misleading advertisement is one that contains a misrepresentation or omission that is likely to mislead consumers about facts important to a consumer’s decision to buy or use a product or service, including but not limited to the following:  Information pertaining to the central characteristics of the product or service; all information pertaining to the cost of the product or service, including, e.g., minimum per-call charges and monthly fees; and geographic restrictions, time-of-use restrictions, and other limitations on the availability of an advertised rate.
2. Where a solicitation inadvertently presents an incorrect rate, term or condition, the carrier must be proactive and timely correct the error as soon as it is discovered to avoid a presumption of having been deceptive.  The correction effort should be commensurate with the solicitation’s distribution.  E.g., in a mass-market advertisement, the carrier would be expected to distribute promptly and publicly a correction designed to reach essentially the same target audience as the original solicitation; in a more narrowly-focused solicitation, the correction could be more focused. 

(e)   No telephone corporation, or any person, firm, or corporation representing a telephone corporation, shall make any change or authorize a different telephone corporation to make any change in the provider of any telephone service for which competition has been authorized. of a telephone subscriber without the subscriber’s authorization.

[Comment:  All carriers must comply with applicable provisions of state and federal law, including Public Utilities Code Section 2889.5, when changing subscribers’ service providers.]

(f) No carrier whose service has been cancelled at the subscriber’s request shall re-establish service for that subscriber without a new subscriber authorization.  Authorization may not be founded upon any term in an agreement for service that binds the subscriber to again take service from the carrier.

(g)  Where a carrier has misrepresented its rates, terms or conditions for a competitive product or service, or presented those rates, terms or conditions of service in a manner likely to mislead consumers, the carrier must honor consumer requests to provide the product or service under the rates, terms and conditions that were offered to and accepted by the consumer.

Rule 3:  Service Initiation

(a)  Carriers may initiate service upon request (in any form) from a consumer or subscriber.

[Comment:  Carriers must still comply with any applicable statutes or other legal requirements where they apply, e.g., the Section 2889.5 confirmation requirements when changing a competitive service from one provider to another.]

(b)  Carriers offering basic service shall provide consumers initiating service, including those adding additional lines to existing accounts, with the following information whenever applicable:

1. Availability, eligibility requirements and discounts associated with the Universal Lifeline and Deaf and Disabled Trust Programs.
2. Availability and effect of freezing the pre-subscribed carrier assigned to the account.
3. Availability and effect of restricting toll calling.
4. Availability and effect of deleting access to 900 and 976 pay-per-call telephone information services.
5. Availability and effect of blocking options for pay per use features that do not require dialing an access code to activate.
6. Availability and effect of blocking non-presubscribed carrier (e.g., third party) charges from being billed on the telephone bill.
7. Availability and effect of Caller ID blocking options.
8. Availability and rates of the least expensive service meeting the customer’s needs.

9. Any other information necessary to enable consumers to make informed choices among services and providers. 

[Comments:

1. The Commission’s policy is to ensure that consumers have access to information needed to make timely and informed choices about basic service and ULTS. See D.96-10-066, Appendix B.  

2. The Commission deems the disclosures specifically required by subsections (1) through (8) to be necessary to enable consumers to make informed choices about their service options when initiating service.  See Public Utilities Code § 2896(a).  Depending upon the services available and other circumstances, additional disclosures not specifically listed in this rule may be necessary to make informed choices.  Subsection (9) provides that all such disclosures, whether or not specifically enumerated, are required pursuant to Section 2896(a) and these rules.]  

(c) For services offered on a tariffed basis, carriers shall send the subscriber a written confirmation of the order not later than seven days after it is accepted.  The confirmation shall include all applicable rates, terms and conditions for each service ordered, and shall conform to the same requirements as set forth for solicitations in Rules 2.a. and 2.d.  Confirmation shall be in the same language in which the carrier solicited or accepted the order. 

(d)  Non-tariffed services may be provided only on a signed, written contract basis.  The carrier shall send the subscriber a written, proposed contract not later than seven days after the order is accepted.  The contract shall include all applicable rates, terms and conditions for each service ordered, and shall conform to the same requirements as set forth for service agreements, contracts and solicitations in Rules 2(a) through 2(d).  Ambiguities in any contract will be construed against the carrier. 

[Comment:  For both Rules 3.c. and 3.d., rates, terms and conditions information shall be provided with sufficient specificity to enable subscribers to verify the accuracy of the charges on their bills.]  

(e)  Subscribers may cancel any request for tariffed service without penalty after the carrier sends the written confirmation described in Rule 3(c).  Subscribers may terminate any contract for non-tariffed service without penalty within three business days after signing the written proposed contract called for in Rule 3(d).  Subscribers shall have 30 days after signing to terminate without penalty any written contract for non-tariffed service that includes fees, charges or penalties for early termination or cancellation. 

[Comment:  Rule 3(e) is not to be interpreted as relieving the subscriber from payment for any actual use made of the service before canceling.]  

(f)  Any fees, charges or penalties for early termination or cancellation of any non-tariffed service shall be null and void unless the subscriber, in addition to signing the contract, separately signs or initials the contract in the immediate proximity of the notice of those fees, charges or penalties to indicate awareness of and agreement to them.

(g)  Charges for pay per use features are not authorized unless the subscriber knowingly and affirmatively activates the service by dialing or some other affirmative means.  Going from on-hook to off-hook (i.e., lifting the receiver), or remaining on the line, or failing to remain on-hook for a sufficient time, or any other ambiguous action, shall not in itself constitute authorization; an unambiguous, associated, affirmative action is required.

(h) For any service for which no record of affirmative subscriber authorization is available, all disputed charges are subject to a rebuttable presumption that the charges are unauthorized.

(i) A carrier may not deny service for failure to provide a social security number.  Whenever a carrier requests a consumer’s social security number, the carrier shall inform the consumer that providing it is optional and that failure to provide it is not cause for denying service.

(j)  When a carrier denies an application for a telecommunications service subject to Commission jurisdiction, the carrier shall inform the applicant of the reasons within 10 days thereafter.  The carrier’s reasons shall be provided in writing unless the applicant agrees to accept a different form of written notice.

(k)  When establishing an installation or repair appointment for which the subscriber must be present, the carrier shall offer the subscriber a four-hour period during which it will arrive to commence work.  If the installation or repair is not commenced within the four-hour period, the carrier shall provide a $25 credit to the subscriber.  This credit is independent of any remedies available to the subscriber under Civil Code §1722(c) or elsewhere.

Rule 4:  Prepaid Calling Cards and Services

 The following standards and requirements for consumer disclosure and services shall apply with respect to the advertising and sale of prepaid calling cards and prepaid calling services.

(a)  Any advertisement of the price, rate, or unit value in connection with the sale of prepaid calling services shall include a disclosure of any geographic limitation to the advertised price, rate, or unit value, as well as a disclosure of any additional surcharges, call setup charges, or fees applicable to the advertised price, rate, or unit value.

(b)  The following information shall be legibly printed on the card:

1. The name of the carrier
2. A toll-free customer service number.
3. A toll-free network access number, if required to access service.
4. The authorization code, if required to access service.
5. The expiration date or policy, if applicable, except where Rule 4(f) applies.

(c)  The carrier shall print legibly on the card or packaging the following information:

1. Any surcharges or fees, including monthly fees, per-call access fees, or surcharges for the first minute of use that may be applicable to the use of the prepaid calling card or prepaid calling services within the United States.
2. Whether there are additional or different prices, rates, or unit values applicable to international usage of the prepaid calling card or prepaid calling services.
3. The minimum charge per call, such as a three-minute minimum charge, if any.
4. The charge for calls that do not connect, if any.
5. The definition of the term "unit," if applicable.
6. The billing decrement.
7. The name of the carrier.
8. The recharge policy, if any.
9. The refund policy, if any.
10. The expiration policy, if any.
11. The 24-hour customer service toll-free telephone number required in Rule 4(d).

(d)  Each carrier shall establish and maintain a toll-free customer service telephone number with a live operator to answer incoming calls 24-hours a day, seven days a week, through which consumers may lodge relevant complaints and through which the following information may be obtained by consumers:   

1. All rates, surcharges, and fees.
2. The carrier's recharge, refund, and expiration policies.
3. The balance of use in the consumer's account, if applicable.

(e)  Each carrier that issues prepaid calling cards or prepaid calling services shall provide a refund to any purchaser of a prepaid calling card or prepaid calling services if the network services associated with that card or services fail to operate in a commercially reasonable manner.  The refund shall be in an amount not less than the value remaining on the card or in the form of a replacement card, and shall be provided to the consumer within 60 days from the date of receipt of notification from the consumer that the card has failed to operate in a commercially reasonable manner. 

(f)  Cards without a specific expiration date or policy printed on the card, and with a balance of service remaining, shall be considered active for a minimum of one year from the date of purchase, or if recharged, from the date of the last recharge. 

(g)   In the case of prepaid calling cards or services utilized at a payphone, the carrier may provide voice prompt notification of any applicable payphone surcharges, in lieu of providing notice of surcharges as required by Rule 4(a) and Rule 4(c) (1).

Rule 5:  Deposits to Establish or Re-establish Service

(a)   A carrier may require a deposit to establish or re-establish service if and only if an applicant for service is unable to demonstrate acceptable credit to the satisfaction of the carrier.  Failure to provide a social security number shall not by itself be cause for requiring a deposit.  A carrier may not require a deposit for services provided by another carrier, or refuse to accept a deposit in lieu of demonstrating satisfactory credit. 

(b)   A deposit to establish or re-establish basic service may not exceed twice the estimated or typical monthly bill for recurring and usage charges for basic service.  A carrier may require an additional deposit for services it provides other than basic service. 

(c)  Deposits shall earn not less than 5% simple annual interest on the monthly unused balance. 

(d)  Carriers shall refund deposit amounts associated with basic service, with interest, after one continuous year of timely payments for basic service, and not later than 30 days after basic service is discontinued.  Carriers shall refund deposits associated with other services not later than 120 days after service is discontinued.

Rule 6:  Billing 

(a)  Telephone bills shall be clearly organized and may only contain charges for products and services the purchase of which the subscriber has authorized.  Charges for non-communications-related products and services may be included in a telephone bill, or in the same envelope as a telephone bill, only if they meet the requirements of Part 3, Rules Governing Billing for Non-communications-Related Charges, of this General Order. 

(b)  The name of the service provider associated with each charge must be clearly and conspicuously identified on the telephone bill.  Certificated carriers shall use the name that appears on their Certificate of Public Convenience and Necessity, or any fictitious business names that are properly registered pursuant to Business and Professions Code §17900 et seq. and registered with the Commission’s Telecommunications Division.  Abbreviations may be used so long as there is sufficient information to make it abundantly clear to the subscriber and Commission staff who the service provider is.  For carriers not certificated by the Commission, the bill shall include the name under which the carrier is certificated by the FCC, if applicable, or the carrier's legal name as registered with the California Secretary of State. 

(c)  Where charges for two or more carriers appear on the same telephone bill, the charges must be separated by service provider. 

(d)  Telephone bills shall clearly and conspicuously identify any change in service provider, including identification of charges from any new service provider, and new recurring charges from current service providers.  For purposes of this rule, "new service provider" means a service provider that did not bill a subscriber for that service during the service provider's previous billing cycle.  This definition shall include only providers that have continuing relationships with the subscriber that will result in periodic charges on the subscriber's bill until the service is canceled. 

(e)  Charges contained on telephone bills must be accompanied by clear, concise, non-misleading, plain language descriptions of the services for which the charges were imposed.  The descriptions must be sufficiently clear and specific for subscribers to determine whether the services for which they are being billed are those that they have requested and received, and that the charges shown for those services conform to their understanding of what the rates would be. 

(f)  Where a telephone bill contains both charges for basic residential or single line business service and other charges, the bill must distinguish between charges for which non-payment will result in disconnection of basic residential or single line business service, and charges for which non-payment will not result in such disconnection.  The carrier must explain this distinction to the subscriber, and must clearly and conspicuously identify on the bill those charges for which nonpayment will not result in disconnection of basic residential or single line business service. 

(g)   All government-mandated taxes and fees required to be collected from subscribers shall be listed in a separate section of the telephone bill entitled "Taxes," and all such charges shall be separately itemized.  This section of the bill shall not include any charges which the carrier has discretion to recover or not recover from subscribers.  Discretionary charges currently include, e.g., the End User Common Line Charge (EUCL).  Carriers shall not label or describe charges in any other section of the bill in a way that could mislead subscribers to believe those charges are other than elective for the carrier to collect. 

(h)  Telephone bills shall, at a minimum, contain the following information:  (1)  billing carrier’s name, consistent with Rule 6(b) above; (2) period of service covered by the bill; (3) payment due date; (4) late payment charge (if applicable) and date after which it may be applied; (5) how to pay; and, (6) the carrier's toll free number for billing inquiries and disputes, along with an address where the subscriber may send a billing inquiry or complaint in writing. 

(i)  Where the subscriber has arranged with the carrier to access the telephone bill only by e-mail or the Internet rather than by regular mail, the provisions of this Rule 6 shall apply to the bill so presented.  In that case, the carrier shall in addition provide e-mail or Web site addresses for billing inquiries and complaints. 

(j)  Carriers shall provide subscribers the option of blocking non-presubscribed carriers from placing charges on the subscriber's bill, except for services offered on a dial-around basis. 

(k) In addition to the billing requirements above, each bill shall include the following statement: 

If you have a billing or service question, or a complaint, you should contact us to try to resolve the matter.  If we are not able to resolve it to your satisfaction, you may write or call: 

California Public Utilities Commission

Consumer Affairs Branch, Room 2003

505 Van Ness Avenue

San Francisco,  CA  94102

E-mail:  consumer-affairs@cpuc.ca.gov

If your complaint concerns interstate* or international calling, you should contact the Federal Communications Commission at:

Federal Communications Commission

Mail Stop 1600 A2

Washington, D.C.  20554

*   The California Public Utilities Commission handles complaints of both interstate and intrastate unauthorized carrier changes (“slamming”) at its address above.

The California Public Utilities Commission requires all telecommunications carriers to follow certain consumer protection rules.  Your rights and those rules are available on the Commission’s web site, linked from www.cpuc.ca.gov.

[Comment:  The contact information in this billing statement was current as of the date the general order was issued.  CAB may by letter direct carriers to update or revise this contact information as necessary.]  

Rule 7:  Late-Payment Penalties, Backbilling, and Prorating

(a)  The payment-due date on a subscriber’s bill shall be not less than 22 days after the date the bill was mailed.  A carrier shall credit payments effective the business day payments are received by the carrier or its agent.  A bill becomes overdue and delinquent when the carrier or its agent does not receive payment on or before the payment-due date.  Any authorized late-payment penalty may not exceed 1.5% per month on the balance overdue, and no late-payment penalty may be applied to overdue balances of less than $20.  Late payment charges shall not apply to amounts in dispute that are resolved in the subscriber’s favor.

(b)   A bill shall not include any previously unbilled charge for intrastate service furnished 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 subscriber’s home system, and five months for collect, third-party, and calling card calls.  In cases involving subscriber fraud this limitation on backbilling does not apply.

(c)  Any complaint by a subscriber against a carrier for reparations must be filed with the Commission within three years from the time the cause of action accrues, and not after.  If a claim for the asserted reparations has been presented in writing to the carrier within the three year period, the period for filing a complaint with the Commission shall be extended to include six months from the date notice in writing is given by the carrier to the claimant of the disallowance of the claim or any part of the claim specified in the notice.  This rule shall not act to limit any right a subscriber may have to pursue a cause of action in any court which may have concurrent jurisdiction.

(d)  Carriers shall prorate charges for basic service for partial months.  A 30-day month may be used for prorating in lieu of calendar days.

(e)  Bills must be based on the rates in effect at the time the service was used.  Any delays or lags in billing must not result in a higher total charge than if the usage had been posted to the account in the same billing cycle in which the service was used.

Rule 8:  Tariff Changes, Contract Changes, Transfers, Withdrawals and Notices

(a)   A carrier shall notify all affected subscribers at least 25 days in advance of every proposed change in its subscribers’ tariffed services that may result in higher rates or more restrictive terms or conditions.  The subscriber notice shall describe the current and proposed rates, terms or conditions, as appropriate.  Where required by D.02-01-038 (or General Order 96-B, when issued), the notice must also describe the reason for the proposed change to a rate or charge and state the impact of the change in dollar and percentage terms.

[Comment:  This rule applies only to the carrier’s rates (as defined), terms and conditions, and thus excludes  taxes or surcharges for which the carrier has no discretion over the amount to charge the consumer.]

(b)   No material change in any of the rates, terms or conditions of service specified in a written contract shall be enforceable unless the change is also set forth in writing and signed by the subscriber.

(c) A carrier shall notify each affected subscriber at least 30 days in advance whenever it requests approval for a transfer of subscribers, as defined.  The notice shall follow the requirements where applicable of General Order 96-Series and/or and §2889.3; describe the proposed transfer in straightforward terms; explain that the transfer is subject to Commission approval; identify the transferee; describe any changes in rates, charges, terms, or conditions of service; state that subscribers have the right to select another utility; and provide a toll-free customer service telephone number for responding to subscribers’ questions.  Subscriber notices of transfers requested by application shall also comply with the Rules of Practice and Procedure and any rulings of the presiding officer during the course of the formal Commission proceeding.

In subscriber notices of transfers, certificated carriers shall use the name that appears on their Certificate of Public Convenience and Necessity, or any fictitious business names that are properly registered pursuant to Business and Professions Code §17900 et seq. and registered with the Commission’s Telecommunications Division.  Abbreviations may be used so long as there is sufficient information to make it abundantly clear to the subscriber and Commission staff who the service provider is.

(d)   A carrier shall notify each affected subscriber at least 25 days in advance of every request to withdraw service.  The notice must describe the proposed withdrawal and proposed effective date, state that subscribers have the right to choose another utility, and provide the carrier’s toll-free customer service telephone number for responding to subscribers’ questions.  If the service to be withdrawn is basic service (as defined in these rules), the carrier must also: explain in the notice that the withdrawal is contingent on Commission approval; arrange with the default carrier(s) for continuity of service to affected subscribers who fail to choose another utility and describe in the notice those arrangements and the subscribers’ right to receive basic service from the underlying carrier or carrier of last resort; and provide the default carrier’s name and toll-free number.

(e)  Notices required in these Rules shall be in writing by one or a combination of bill inserts, notices printed on bills, or separate notices sent by first class mail.  In each case, an electronic notice may be substituted where the subscriber has agreed to receive notice in that manner.  Notice by first class mail is complete when the document is deposited in the mail, and electronic notice is complete upon successful transmission.  Every notice in whatever form shall be legible and the equivalent of 10-point type or larger.

Rule 9:  Service Termination

(a)  Carriers shall provide notices in writing to subscribers not less than 7 calendar days prior to terminating service for nonpayment of overdue bills.  Each termination notice shall include all of the following:

1. Carrier’s name, following the same designation guideline used in Rule 6(b) above.
2. The name and address of the subscriber, and the telephone number associated with the account which is delinquent.
3. Information sufficient for the subscriber to identify what service(s) are to be terminated, and the delinquent amount(s).  If basic service is to be disconnected, the notice shall state the minimum amount that must be paid to retain basic service.
4. The date by which payment, or arrangement for payment, must be made to avoid termination.
5. A toll-free telephone number to reach a carrier service representative who can provide subscriber assistance.
6. The telephone number of the Commission’s Consumer Affairs Branch where the subscriber may direct inquiries.
7. Basic exchange service may not be disconnected on any day carrier service representatives are not available to assist subscribers.

(c)  These notice and disconnection requirements do not apply where the subscriber’s acts or omissions demonstrate an intention to defraud the carrier, or threaten the integrity or security of the carrier’s operations or facilities. 

(d)  Basic service providers may not disconnect basic residential or single line business service, either flat rate and/or measured rate, as defined in D.96-10-066, Appendix B, page 5, for nonpayment of any charge other than non-recurring or recurring charges for that same service, including mandated surcharges and taxes calculated on that service.  Mandated surcharges do not include charges that are elective for the carrier to recover.  This restriction shall not prevent a basic service provider that is not a carrier of last resort from disconnecting basic service for nonpayment of long distance telecommunications services it provides directly or through an affiliate. 

(e)  Any partial payment made by a subscriber shall be applied first against the balance due on that subscriber’s basic service unless the subscriber directs otherwise. 

(f)  Where a subscriber is offered and agrees to an alternative payment plan, the carrier must provide confirmation in writing of the terms if the subscriber so requests.  An electronic written confirmation may be substituted where the subscriber has agreed to receive confirmation in that manner. 

(g)  Every carrier shall comply with the rules adopted by the Commission in D.91188 regarding service denial or disconnection for use of telecommunications service in violation of the law. 

Rule 10:  [Reserved]  

Rule 11:  Billing Disputes

(a)   In the case of a billing dispute between a subscriber and a carrier, the carrier shall investigate the charge(s) the subscriber has informed the carrier are in question, and shall reach a determination and communicate it to the subscriber within 30 days. 

(b)   A carrier may not disconnect service to a subscriber within seven calendar days after the date the carrier notifies the subscriber in writing of the results of its investigation.  In no event shall the carrier disconnect service prior to the due date shown on the bill. 

(c) A carrier may not disconnect service to a subscriber for nonpayment if the subscriber has submitted a claim to CAB for informal review, deposited the disputed amount with the Commission, and either paid the undisputed amount to the carrier or deposited it with the Commission.

[Comment:  The rules in Part 3 supersede Rules 11(a), 11(b), and 11(c) when the dispute involves billings for non-communications related charges.]

(d)  Carriers shall not limit by contract the right of subscribers to bring complaints to the Commission, or the rights and remedies available to them by law in any California court or agency of competent jurisdiction, nor shall carriers by contract hold subscribers liable for carrier legal costs resulting from complaints before the Commission, the courts or another agency.

Rule 12: Privacy 

The primary purpose of Rule 12 is to protect the privacy rights of individuals, as subscribers and as users of telecommunications networks.  These rights, which are protected by Article I, Section 1 of the California Constitution, by the Public Utilities Code, particularly § 2891-2894.10, and by 47 U.S.C. § 222, include the right to engage in private communications over the telephone networks, and the right to exercise control over the collection, use, and disclosure of personally identifiable non-public subscriber information that carriers may collect or develop by virtue of the carrier-subscriber relationship (see definition of confidential subscriber information).  A secondary purpose is to prevent the use of confidential subscriber information in ways that are anti-competitive.

[Comment: Cross references to other federal and state statutes that protect privacy interests of telephone consumers (e.g., the Telephone Consumer Protection Act) are provided for information purposes in the form of comments to the rules.]

(a)  Accountability:  Every carrier is responsible for the appropriate handling of confidential subscriber information under its control, consistent with applicable state and federal law and this rule.  Every carrier shall designate an individual or individuals who are accountable for the carrier’s compliance with this Rule 12.  Carriers shall provide contact information for these designated individuals to Commission staff upon request.

(b)  Identifying purpose(s) :  When collecting confidential subscriber information and obtaining customer consent to use it for a purpose other than the provision of, or billing for, service requested by the customer, carriers shall clearly identify the purpose(s) for which that information is collected, and shall note and retain that information in their records for each subscriber for as long as the carrier-subscriber relationship continues.  If a carrier wishes to use confidential subscriber information for a purpose other than the provision of, or billing for service, (e.g., to market a different type of service or other products unrelated to the type of service the carrier already provides that subscriber), the carrier must first obtain the customer’s consent, in writing.

(c)  Informed consent:  Carriers shall collect, use, and disclose to third parties confidential subscriber information only with the knowledge and prior affirmative written consent of the subscriber, and only for the purpose(s) agreed to by the subscriber.  “Third party” includes any person not employed by the carrier and any other corporation, including an affiliate of the carrier.

[Comment:  This informed consent requirement essentially requires that a subscriber give express permission to a carrier, or “opt-in”, before the carrier may disclose confidential subscriber information to a third party.]

Exceptions to the affirmative written consent requirement:

1. Information necessary to provide service:  Carriers may disclose subscribers’ confidential information to affiliates or to other third parties without the affirmative consent of the subscriber, to the extent necessary to initiate, render, bill and collect for the type(s) of service that the carrier is providing to that subscriber.  Under this exception, carriers may also use a subscriber’s confidential information to market to that subscriber additional products related to the type(s) of service the carrier is providing to that subscriber, without the subscriber’s express consent, unless the subscriber has indicated that he or she does not wish to receive solicitations about additional products. Whenever a carrier discloses confidential subscriber information to a third party under this exception, it must clearly identify the purpose of the disclosure and require the recipient of the confidential information not to use it for any other purpose, not to retain it any longer than necessary to accomplish that purpose, and to take appropriate precautions to prevent unauthorized use or disclosure. Carriers are responsible for monitoring the recipient’s compliance with these requirements, and for taking appropriate corrective action promptly if a carrier learns that such a recipient has failed to safeguard that information as required by this Rule 12.  
   
2. Information exempt pursuant to § 2891(d) :  In addition to the exceptions set forth in the preceding subsection, pursuant to § 2891(d), the written consent requirement does not apply to the following categories of information:  information  provided by residential subscribers for inclusion in a subscriber directory; information customarily provided through directory assistance services; postal ZIP Code information; information provided under the supervision of the Commission to a collection agency by a telephone corporation exclusively for the collection of unpaid debts; information provided to an emergency service agency responding to a 911 telephone call or any other call communicating an imminent threat to life or property; information provided to a law enforcement agency in response to lawful process; information required by the Commission pursuant to its jurisdiction over telephone corporations; information transmitted between telephone corporations in order to provide telephone service between service areas; information required to be provided pursuant to rules and orders of the Commission or the FCC regarding the provision of services over the telephone lines by parties other than the telephone corporation; and the name and address of lifeline customers provided for the sole purpose of low-income ratepayer assistance outreach efforts.

[Comments:

1. Written consent: The subscriber’s written consent (and the required privacy rights notice (see Rule (4), below) ) may be delivered electronically, provided the relevant requirements set forth in these rules, and in the federal E-Sign Act (15 U.S.C. § 7001 et seq.) and/or the California Uniform Electronic Transactions Act (Civil Code § 1633.1 et seq.), if applicable, are satisfied.  See definitions of “written” and “in writing” in Part 2 of this General Order.  
   
2. “Information provided in response to lawful process”:  Pursuant to § 2894, the written consent requirement set forth in § 2891 does not apply to the disclosure of confidential subscriber information in compliance with a warrant, court order, or subpoena.  The written consent requirement  does apply, however, to a subpoena duces tecum for personal records maintained by a telephone corporation.  Such a subpoena is ineffective unless it includes a consent to release signed by the customer whose records are requested.  Code of Civil Procedure § 1985.3(c ) (f).]

(d)  Required notice of privacy rights:  Whenever a carrier seeks to collect confidential subscriber information or to obtain a subscriber’s consent to use or disclose that information, the carrier must first provide the subscriber, in a clear, accurate, and non-misleading manner, sufficient information to enable the subscriber to make an informed decision about whether to provide the information requested and/or whether to give consent to its use or disclosure.  This information must be provided in writing, although this rule does not preclude carriers from communicating this information orally, in addition to the required written notice.

Written confirmations of orders for services offered on a tariffed basis, and contracts for non-tariffed services, shall include a privacy notice that includes a clear explanation of the purpose(s) for which the subscriber’s confidential subscriber information may be used and to whom it may be disclosed.  The notice must state that the subscriber has a right, and the carrier a duty, under federal and state law, to protect the confidentiality of subscriber information, including calling patterns, choice of services, credit history, and financial and demographic information as defined in California Public Utilities Code § 2891.  The notice must also include a clear explanation of the subscriber’s right to access the confidential subscriber information under the carrier’s control, pursuant to these rules, and to request that the carrier update and correct that information.  It must also inform the subscriber that the carrier must obtain the customer’s affirmative written consent to use the information for any purpose other than to provide, or bill for, the service requested by the customers and that he or she may deny or withdraw such consent to allow the carrier to use or disclose the subscriber’s confidential information at any time.

The notice must explain what steps the subscriber must take in order to exercise these rights.

Any statements, oral or written, made by carriers to subscribers about whether the withholding of consent to the collection, use or disclosure of confidential subscriber information will affect the provision of service to a subscriber must be truthful and not misleading.

Written notices of privacy rights must be clear and conspicuous.  If accompanied by a solicitation for the subscriber’s consent, the notice of rights must be conspicuously placed so that it is noticeable to a person reading the consent form.

If any portion of a notice is translated into another language, then all portions of the notice must be translated into that language.  Translations of the notice required by this rule are subject to the same requirements as notices provided in English.

(e)  Limiting collection:  Carriers shall limit the collection of confidential subscriber information to that which is necessary for the purposes specified at the time of collection.  Information shall be collected by fair lawful means.

(f)  Limiting use, disclosure, and retention:  Carriers may use and disclose confidential subscriber information only for the purposes for which it was collected, except with the consent of the subscriber or as expressly permitted by law.  Confidential subscriber information shall be retained only for as long as necessary for the fulfillment of those purposes.

[Comment:  On the destruction of customer records no longer to be retained, see Title 1.81 (§§ 1798.80-1798.82) of the Information Practices Act of 1977.  Title 1.81, which is applicable to customer records of private businesses, was added by Stats. 2000, ch. 1039 (AB 2246, § 1).]

(g)  Accuracy:  Carriers shall make reasonable efforts to ensure that the confidential subscriber information under their control is as accurate and up-to-date as is necessary for the purposes for which it is to be used.

(h)  Safeguards:  In order to prevent unauthorized use, disclosure, or alteration of confidential subscriber information, carriers shall protect it by appropriate safeguards.

(i)  Subscriber access:  Upon request, carriers shall disclose to a subscriber what confidential information the carrier has about that subscriber and shall provide an opportunity to update the information and to challenge any inaccuracies.

Carriers shall make reasonable efforts to correct inaccuracies brought to their attention.  Upon request, carriers shall also disclose to the subscriber how that subscriber’s confidential information has been used and to whom it has been disclosed.  Provided a carrier attempts to comply with this provision in good faith, a carrier may refuse to process unreasonably repetitive requests from the same individual.

Upon a subscriber’s request, carriers shall remove a subscriber’s social security number from the subscriber’s customer record.

(j)  New services with privacy implications:  Carriers shall present new and upgraded services subject to the Commission’s jurisdiction with privacy implications for Commission review and approval before marketing such services to the public.

Services with privacy implications are those services which, when subscribed to or used, reveal or disseminate, or have the potential to reveal or disseminate, confidential subscriber information or a subscriber’s name, address or telephone number.

(k)  Blocking:  Subscribers shall be given the opportunity to block on a per-call or per-line basis, at the subscriber’s option, services subject to the Commission’s jurisdiction that have a privacy implication.

(l)  Right to be removed from sales solicitation lists:  Carriers shall comply with subscriber requests to be removed from sales solicitation lists maintained by carriers and/or their agents and affiliates.

[Comment: The Telephone Consumer Protection Act, 47 U.S.C. § 227 (see also 47 C.F.R.  64.1200) requires telemarketers to comply with consumers’ request to be removed from marketing lists and be placed on a “do not call” list, as does the recently enacted California “do not call” law, SB 771 (adding Business and Professions Code §§ 17590-17595).].

(m)  Compliance with privacy laws:  Carriers shall comply with Public Utilities Code §§ 761.5 (Centralized Credit Check Services), 2872-2875 (Automatic Dialing Devices), 2891-2894.10 (Customer Right of Privacy), 47 U.S.C. §222, and all other applicable state and federal statutes and regulations pertaining to the confidentiality of telephone communications and to the collection, use, disclosure and retention of confidential subscriber information as they may be amended from time to time.

(n)  Compliance with Commission decisions:  Carriers shall comply with D.97‑01‑042, which sets forth rules relating to subscriber directory listing and access to directory listing information, and with the rules set forth in D.92860 and D.93361, Appendix A, Nonpublished Service, and Appendix B, Release of Credit Information and Calling Records, as modified, which address the release of nonpublished information, calling records and credit information of all subscribers.

(o)  Compliance with prior Commission decisions regarding subscriber directory listing:  Carriers shall comply with D.92860, as modified by D.93361, Appendix A, Nonpublished Service, and Appendix B, Release of Credit Information and Calling Records, as modified, which address the release of nonpublished information, calling records and credit information of all subscribers; and with D.97-01-042, which sets forth rules relating to subscriber directory listing and access to directory listing information.

Rule 13:  Consumer Affairs Branch Requests for Information

(a)  Every carrier shall designate one or more representatives to be available during regular business hours (Pacific time) to accept Consumer Affairs Branch inquiries and requests for information regarding informal complaints from subscribers.  Every carrier shall provide to Consumer Affairs Branch and at all times keep current its list of representative names, telephone numbers and business addresses.

(b)  Every carrier shall provide all documents and information Consumer Affairs Branch may request in the performance of its informal complaint and inquiry handling responsibilities, including but not limited to subscriber-carrier service agreements and contracts, copies of bills, carrier solicitations, subscriber authorizations, correspondence between the carrier and subscriber, applicable third party verifications, and any other information or documentation.  Carriers shall provide requested documents and information within ten business days from the date of request unless other arrangements satisfactory to Consumer Affairs Branch are made.

(c)  Nothing in these rules shall limit the lawful authority of the Commission or any part of its staff to obtain information or records in the possession of carriers when they determine it necessary or convenient in the exercise of their regulatory responsibilities to do so.

Rule 14:  Employee Identification

 (a)  Every carrier shall prepare and issue to every employee who, in the course of his or her employment, has occasion to enter the premises of subscribers of the carrier or applicants for service, an identification card in a distinctive format having a photograph of the employee.  The carrier shall require every employee to present the card upon requesting entry into any building or structure on the premises of an applicant or subscriber.

(b)  Every carrier shall require its employees to identify themselves at the request of any applicant or subscriber during a telephone or in-person conversation, using a real name or other identifier sufficiently unique for the carrier and the applicant or subscriber to refer matters back to the same employee in the future when necessary.

Rule 15:  Emergency 911 Service 

All carriers providing end-user access to the public switched telephone network shall, to the extent permitted by existing technology or facilities, provide every telephone connection, and every wireless device technologically compatible with its system, with access to 911 emergency service regardless of whether an account has been established.  No carrier shall terminate access to 911 emergency service for non-payment of any delinquent account or indebtedness owed to the carrier.