COM/CXW/tcg DRAFT Agenda ID #733

7/17/02

Decision DRAFT DECISION OF COMMISSIONER WOOD (Mailed 6/6/2002)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's Own Motion to Establish Consumer Rights and Consumer Protection Rules Applicable to All Telecommunications Utilities.

Rulemaking 00-02-004 (Filed February 3, 2000)

INTERIM DECISION ISSUING GENERAL ORDER ___,

RULES GOVERNING TELECOMMUNICATIONS CONSUMER PROTECTION

Summary

By this decision the Commission adopts General Order No. ___ (G.O. ___), Rules Governing Telecommunications Consumer Protection, applicable to all Commission-regulated telecommunications utilities. G.O. ___ sets forth: in Part 1, a telecommunications consumers' Bill of Rights, the fundamental consumer rights that all communications service providers must respect; in Part 2, a set of Consumer Protection Rules all carriers must follow to protect those rights; in Part 3, Rules Governing Billing for Non-communications-Related Charges, in response to recent state legislation; and in Part 4, Rules Governing Slamming Complaints, to implement federal rule changes enacted in 2000 by the Federal Communications Commission. Where the new rules supersede current rules, the order so notes. In addition, the Commission narrows the limitation of liability provisions formerly available to Commission- regulated

TABLE OF CONTENTS

Title Page

INTERIM DECISION ISSUING GENERAL ORDER ___,
RULES GOVERNING TELECOMMUNICATIONS CONSUMER
PROTECTION 1

Summary 1

Background 2

Part 1: Bill of Rights 6

Part 2: Consumer Protection Rules 12

Relationship to Existing Rules and Tariffs 13

Tariffs 14

CLC Rules 15

Detariffed IEC Rules 15

CMRS Rules, and the CMRS Proceeding 16

General Orders 18

State and Federal Statutes, and FCC Orders 18

Applicability 19

To Carriers 19

To Consumers 20

Other 21

The New Consumer Protection Rules 22

Rule 1: Carrier Disclosure 22

Rule 2: Marketing Practices 31

Rule 3 (and Former Rule 4): Service Initiation 37

Rule 4: Prepaid Calling Cards and Services 45

Rule 5: Deposits to Establish or Re-establish Service 48

Rule 6: Billing 50

Rule 7: Late-Payment Penalties, Backbilling, and Prorating 56

Rule 8: Tariff Changes, Contract Changes, Notices and Transfers 59

Rule 9 (and Former Rule 10): Service Termination 64

Rule 11: Billing Disputes 68

Rule 12: Privacy 70

Legal Framework 73

Federal Law: 47 USC § 222 and FCC's CPNI Regulations 73

California Law: Public Utilities Code §§ 2891-2894.10; 2895-2897 75

Federal Preemption 76

Provisions of Rule 12 77

Compliance Timeframe 79

TABLE OF CONTENTS

Title Page

Rule 13: Consumer Affairs Branch Requests for Information 79

Rule 14: Employee Identification 81

Rule 15: Emergency 911 Service 81

Part 3: Rules Governing Billing for Non-communications-Related Charges 83

Part 4: Rules Governing Slamming Complaints 84

Background 84

The FCC Slamming Rules 86

The CPUC Slamming Rules 88

For IntraLATA, InterLATA and Interstate Toll Carriers 88

For Local Exchange Carriers 90

The Parties' Comments 91

Detariffing 95

Limitation of Liability 99

Education and Enforcement 104

Education 104

Enforcement 108

Comments on Draft Decision 114

Findings of Fact 114

Conclusions of Law 118

INTERIM ORDER 121

Appendix A: California and Federal Privacy Statutes

Appendix B: General Order ___

telecommunications utilities. The Commission does not at this time implement the rulemaking order's proposal to have the Consumer Protection Rules replace tariffs for competitive telecommunications services. Carriers are required to revise their tariffs where they conflict with the new rules, provided, however, that no tariff changes will be permitted that reduce current consumer protections.

This rulemaking proceeding remains open to consider whether the Commission should implement a telecommunications consumer education program, and if so, how it should be structured.