February 7, 2002 PUC: 11 Docket #: I.02-01-024

Media Contact: PUC Press Office - 415.703.1366 - news@cpuc.ca.gov

PUC TO INVESTIGATE PACIFIC BELL AND SBC-ASI CUSTOMER BILLING AND COMPLAINT PROCEDURES

The California Public Utilities Commission (PUC) has opened an investigation to determine whether Pacific Bell, SBC Advanced Solutions, Inc. (SBC-ASI), and Pacific Bell Internet Services (Pacific Bell Internet) over billed customers for DSL and related service. The investigation will also determine if Pacific Bell has under reported consumer cramming complaints against its affiliates for the Commission.

From 1999 to 2001, the Commission received 753 consumer complaints from Pacific Bell, SBC-ASI, and Pacific Bell Internet customers for billing for unauthorized DSL and/or Internet services. A Commission staff report determined that Pacific Bell, SBC-ASI, and Pacific Bell Internet have billed consumers for DSL and/or Internet services that were neither ordered nor received and/or ordered but not received; billed consumers for DSL and/or Internet services after the consumer requested termination of the service(s); billed consumers twice for the same DSL and/or Internet service; and billed consumers for services or products that were promoted as free or as less expensive than the charges ultimately placed on the consumers' telephone bills.

Pacific Bell's three quarterly reports to the Commission for 2001 showed zero complaints against its affiliate, SBC-ASI. However, according to Commission review of its database that tracks consumer complaints, 283 were against SBC-ASI for unauthorized billing for 2001.

As a result of the alleged violations, the Commission has ordered Pacific Bell, SBC-ASI and Pacific Bell Internet to provide the Commission with all records of customer complaints in California that relate to billing practices from 1999 to present by February 22, 2002.

The allegations and any additional information that is relevant to the investigation will be addressed during a future Commission hearing.

The Commission order announcing the investigation, which provides a summary of the violations alleged, is available on the PUC website at http://www.cpuc.ca.gov/PUBLISHED/FINAL_DECISION/12970.htm.

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