BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Investigation on the Commission's own motion into the operations, practices, and conduct of Starving Students, Inc. (Cal T-116,476), and Ethan Margalith, Abigail Margalith, Elizabeth Margalith and Sanford Margalith.	FILED PUBLIC UTILITIES COMMISSION FEBRUARY 7, 2002 SAN FRANCISCO OFFICE I.02-02-005

ORDER INSTITUTING INVESTIGATION

I. INTRODUCTION

We issue this Order Instituting Investigation (OII) to determine whether Starving Students, Inc. (Starving Students) has violated the laws and regulations that govern household goods carriers. The Commission's Consumer Services Division (CSD) staff has prepared investigative reports and obtained declarations from 58 consumers documenting the allegations in this case. CSD staff's investigative reports allege that Starving Students under-reported its gross operating revenue to the Commission in order to under-pay license fees, and operated during periods of suspension for failure to have valid insurance in effect and on file with the Commission. Staff's reports and the consumer declarations also demonstrate that Starving Students has done the following: failed to timely acknowledge and process consumers' claims for lost, stolen or damaged goods; improperly denied consumers' claims for failure to note lost or damaged goods at the time of delivery; failed to properly supervise and train its employees resulting in untrained and unqualified workers; failed to properly supervise and manage its employees and facilities resulting in items being stolen while in the custody of Starving Students and/or its agents and employees; provided illegal verbal estimates; charged more than the provided estimate; failed to provide the required "Not To Exceed Price" on shipping documents; failed to issue the "Important Information For Persons Moving Household Goods" booklet; arrived hours late or failed to provide scheduled moving services at all; failed to honor valuation options; and solicited tips, sometimes through extortion or intimidation.