VIII. CPSD RECOMMENDS THE COMMISSION OPEN AN ORDER INSTITUTING INVESTIGATION

The weight of the evidence presented in this report supports the conclusion that Legacy violated the following statutes:

1. P.U. Code §2890(a) by placing unauthorized charges on consumers' telephone bills in many different ways. Specifically, Legacy charged California consumers for non-existent, fraudulent and unauthorized calls such as:

· Calls that did not occur according to carriers' switch records;

· Collect calls consumers assert they did not accept nor make;

· Unauthorized third-party charges;

· Collect calls that did not connect well, were inaudible, static, were disconnected or connected to wrong numbers;

· Collect calls which consumers specifically refused to accept; and

· Collect calls Legacy connected to consumers' answering machines.

2. P.U. Code §2896(a) and §451, and the Federal Telecommunications Act Section 226 by failing to disclose rate information to its customers for them to make informed choices on whether to accept certain collect calls or not;

3. P.U. Code §489(a) by failing to file its complete tariff timely, and charging consumers under rates not filed with the Commission;

4. P.U. Code §532 by charging consumers in excess of rates posted in rate sheets; and,

5. The Commission's Rules of Practice and Procedure Rule 1.1 by failing to disclose the numerous regulatory sanctions Legacy sustained in 16 other states.

CPSD requests that the Commission investigate these issues in an OII and determine whether and how much penalties and refunds are warranted. Staff believes penalties are necessary based on the evidence.