BEFORE THE PUBLIC UTILITIES COMMISSION OF STATE OF CALIFORNIA
Order Instituting Investigation on the Commission's own motion into the operations, practices, and conduct of Telseven, LLC, Calling 10 LLC dba California Calling 10, (U-7015-C), and Patrick Hines, an individual, to determine whether Telseven, Calling 10, and Patrick Hines have violated the laws, rules and regulations of this State in the provision of directory assistance services to California consumers. |
FILED PUBLIC UTILITIES COMMISSION DECEMBER 16, 2010 SAN FRANCISCO OFFICE I.10-12-010 |
ORDER INSTITUTING INVESTIGATION
INTO THE OPERATIONS OF
TELSEVEN, LLC, CALLING 10, LLC, AND PATRICK HINES
TABLE OF CONTENTS
I. SUMMARY 1
II. RESPONDENTS, AFFILIATES AND COOPERATING BUSINESS ENTITIES 4
A. Respondents 4
1. Telseven, LLC 4
2. Calling 10 LLC 5
3. Common Ownership and Management by Patrick Hines 6
III. CONSUMER COMPLAINTS 8
IV. RESPONDENTS' BUSINESS MODEL 10
A. Respondents Market Their DA Service Through Approximately One
Million Defunct Toll-Free Numbers. 10
B. Respondents Provide Their Reputed DA Services from a Server
Located in Nevada - the "Nevada Directory Assistance Platform." 11
C. Respondents Bill Their Services Through "Billing Telephone Companies" - Typically the Incumbent Local Exchange Carriers Like AT&T
and Verizon. 12
D. How Telseven and Calling 10 Respond to Consumer Complaints. 12
V. FURTHER FACTS REGARDING ALLEGED VIOLATIONS 13
A. Disclosure of the Nature of, and Charges for, Respondents' DA Service. 13
1. Disclosures of Charges and Nature of the DA Service -- on the
1-800 Marketing Intercept. 132. Disclosure of Charges and Nature of the Service at the DA
Platform. 163. Disclosures on Telephone Bills. 18
4. AT&T's Concerns about Telseven's Disclosures. 19
B. Facts Relating to Other Possible Violations 21
1. Telseven's Operation without a CPCN. 21
2. Misrepresentation on Calling 10 Application. 21
3. Telseven's Failure to Pay Public Purpose Surcharges on
California Telecommunications Revenue. 22
VI. DISCUSSION -- LEGAL BACKGROUND, POTENTIAL
VIOLATIONS 22
A. Jurisdiction 22
B. Disclosure Violations - Failure to Adequately Disclose the Total Price
for the Service, and Other Information Material to Consumer Choice,
Violates Public Utilities Code §§ 451 and 2896. 22
C. Other Aspects of Respondents' Use of Toll-Free Numbers May Be
Unjust and Unreasonable. 25
1.Respondents' Business Model Bears Resemblance to "Fat Finger Dialing" Schemes the FCC Has Previously Prosecuted as Deceptive. 25
2.Respondents May Be Offering a Pay-Per-Call Service in Violation of Federal Law, Which May Constitute Unjust and Unreasonable Service in Violation of Section 451 and Commission Norms.. 28
3.Respondents May Also Be Hoarding 800 and Other Toll-Free Numbers in Violation Federal Law, Which May Also Constitute Unjust and Unreasonable Service in Violation of Section 451 and Commission Norms. 30
D. Billing Violations - Placing Unauthorized Charges on Consumer
Telephone Bills Violates P.U. Code 2890. 33
E. Billing Violations - Failure to Place Complete and Accurate Information
about Their Charges, and Identity of Service Provider, on Consumers'
Bills, Violates Public Utilities Code §§ 451 and 2890. 35
F. Any USF surcharges Collected from Customers But Not Remitted to the
Federal Universal Service Fund Would Constitute an Unjust and
Unreasonable Billing and Collection Practice. 38
G. Other Possible Violations of Law 39
1. Violation of P. U. Code § 1013 (Operating Without a CPCN). 39
2. Failure to Disclose Full Legal Name in an Application for
Registration with the Commission. 403. Possible Failure to Pay Surcharges 41
