COM/LYN/abw Mailed 9/19/2001
Decision 01-09-017 September 6, 2001
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Investigation on the Commission's own Motion into the operations, practices, and conduct of Vista Group International, Inc., (U-5650), doing business as Vista Communications (Vista), Thomas Coughlin, Chief Executive Officer of Vista, and Philip Bethune, President of Vista, to determine whether they have violated the laws, rules, and regulations governing the manner in which California consumers are switched from one Long Distance carrier to another. |
Investigation 99-04-020 (Filed April 22, 1999) |
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Application for Authority to transfer control of Communications Billing, Inc. (U-6020-C) from its current shareholders to Thomas M. Coughlin, Sr. and Philip A. Bethune. |
Application 99-09-038 (Filed September 20, 1999) |
Regina M. DeAngelis and James McTarnaghan for
Communications Billing, Inc., applicant.
David Crocker and Lawrence M. Brenton for Vista Group
International, Inc., respondent.
Stephanie Krapf for Pacific Bell, interested party.
Carol Dumond for Consumer Services Division.
OPINION FINDING VIOLATIONS AND ORDERING SANCTIONS
TABLE OF CONTENTS
Title Page
OPINION FINDING VIOLATIONS AND ORDERING SANCTIONS 1
Summary 2
Procedural Background 2
Vista's Operations 4
Slamming Allegations 5
Vista's Response To Slamming Allegations 10
1. Lack of Jurisdiction 10
2. Customers Not Slammed 11
3. Vista Not Responsible For Acts Of Independent Contractor 12
4. PIC Reports Unreliable 13
Conclusions Regarding Slamming 14
Cramming Allegations 19
Fines 20
Restitution 23
Suspension 24
Cease And Desist Unlawful Operations 24
Application 99-09-038 25
Appeal of Presiding Officer's Decision 26
Findings of Fact 29
Conclusions of Law 32
ORDER 33
Summary
Today's decision concludes two proceedings, an investigation and an application, concerning a telecommunications service reseller and the owners of that business. In the investigation, we find that the reseller, Vista Group International, Inc., doing business as Vista Communications (Vista or respondent), violated Public Utilities Code Sections 702 and 2889.5 in the course of its telemarketing activities, and that sanctions are warranted for these violations. Specifically, Vista failed to adequately supervise its telemarketers, so that thousands of customers switched long distance providers after receiving misleading solicitations and inadequate information about the rates and switching charges. For these unlawful acts, we conclude that a $7.0 million fine is warranted. We order reparations of $20 for each business line of each aggrieved customer, and certain other actions.
In the application, we grant Communications Billing, Inc.'s (CBI) request to withdraw the joint application to transfer a portion of its customer base to Thomas M. Coughlin, Sr. and Philip A. Bethune, owners of Vista.
