Conclusions of Law

1. The proposed settlement proffered by Pacific Bell, PBI, ASI, CSD, and UCAN is an uncontested settlement as defined in Rule 51(f).

2. Some or all Respondents have violated Section 2890(a) by placing on subscribers' bills charges for products or services the purchase of which those subscribers had not authorized.

3. Some or all Respondents have violated Section 2980(d)(2)(D) by failing to provide a means for expeditiously resolving subscriber disputes over charges for a product or service the purchase of which was not authorized by the subscriber.

4. Pacific Bell has violated Ordering Paragraph 2 of D.00-03-020 as modified by D.00-11-015 by failing to maintain records and submit accurate reports as required.

5. Pacific Bell has violated Section 702 by failing to comply with D.00-03-020 as modified by D.00-11-015.

6. The $27,000,000 penalty Respondents have agreed to pay into the State General Fund under Sections 2107 and 2108 is consistent with the limitations set forth under Section 2107.

7. The settlement is reasonable in light of the whole record, consistent with law, and in the public interest.

8. The settlement should be approved.

9. For administrative efficiency, this order should be made effective today.

ORDER

IT IS ORDERED that:

1. The Joint Motion of Pacific Bell Telephone Company, Pacific Bell Internet Services, SBC Advanced Solutions, Inc., Utility Consumers' Action Network and the Commission's Consumer Services Division for Approval of Settlement Agreement is granted. The settlement agreement attached to this decision as Appendix A is approved.

2. This proceeding is closed.

This order is effective today.

Dated October 30, 2002, at San Francisco, California.

APPENDIX A

Appendix A to C0201007, I0201024 - Settlement Agreement