Appendix A: Telecommunications Consumer Protection Rules

Table of Contents

Page

Definitions A-1

Rule 1: Carrier Disclosure A-4

Rule 2: Marketing Practices A-4

Rule 3: Service Initiation for Subscribed Services A-5

Rule 4: Additional Rules for Local Exchange Service Initiation A-5

Rule 5: Local Exchange Service Deposits and Credits A-6

Rule 6: Billing A-6

Rule 7: Late payment, Back-billing, and Prorating of Charges A-7

Rule 8: Notices of Change in Service Terms and of Ownership A-8

Rule 9: Service Termination and Notice A-9

Rule 10: Additional Rules for Termination of Local Exchange Service A-9

Rule 11: Billing and Service Disputes A-10

Rule 12: Privacy A-10

Rule 13: Staff Requests A-11

Rule 14: Employee Identification A-11

Rule 15: Access to 911 Emergency Service A-12

Scope of Rules: These Customer Protection Regulations apply to the intrastate services of all telecommunication utilities authorized to operate within the State of California by the California Public Utilities Commission. Failure by a carrier to comply with Commission rules may result in penalties as set forth in P.U. Code Sections 2107, through 2111. These rules can not be waived and apply to all service agreements. These rules do not preclude any civil action that may be available by law.

Rule Revisions: The Executive Director of the California Public Utilities Commission is directed to modify rules contained in this General Order to appropriately reflect any change in Commission rule, process, procedure or order.

California Public Utilities Commission

San Francisco, California

www.cpuc.ca.gov

Definitions

Agent: A business representative whose function is to bring about, modify, effect, accept performance of, or terminate contractual obligations between a carrier and applicants or customers.

Basic Exchange Service: A minimum level of telecommunications services each carrier offering local exchange service is required to provide, per Commission order (See: Universal Service Proceeding, R.95-01-020). Local exchange service includes the offering of access to telephone exchange services, or facilities for the purpose of the origination or termination of telephone toll services (See: Section 3(16) of the 1934 Telecommunications Act (47 USCA 153)).

Bill Mailing Date: The postmark or postage meter date indicated on the billing envelope, receipt date on electronic mail, or bill mailing date as recorded by the utility.

Carrier: Any Telephone Corporation operating within California. Telephone corporations are responsible for their agent's compliance with these rules.

Commission: The Public Utilities Commission of the State of California (CPUC).

Complaint: The Commission has three different complaint procedures.

1. Informal Complaint: A consumer complaint regarding an intrastate utility service communicated to the CPUC, Consumer Affairs Branch (CAB). CAB representatives assist consumers in resolving complaints prior to the filing of an "Expedited" or "Formal" complaint. (See Consumer Affairs Branch Below)

2. Expedited Complaint: An abbreviated procedure, which leads to quick resolution and decision by an Administrative Law Judge. Available for cases where the disputed amount is under $5,000. No attorneys may represent either party. No court reporter is present. Hearing is held within 14 days after defendant utility's answer is filed. If appealed by either party and rehearing is granted, the case is reheard under the formal complaint procedure.

3. Formal Complaint: A process that includes evidence, hearings, and briefs, with a decision drafted by an Administrative Law Judge, and approval or rejection by Commissioners at a public Commission meeting. Attorneys may represent parties. A court reporter is present. A formal complaint shall be completed within one year. No time deadline for holding a hearing. If appealed by either party, and rehearing is granted the rehearing will be conducted under these same procedures. Formal complaints must assert a violation of a tariff, rule, law or order, or must comply with P.U. Code Section 1702.

Consumers can get information or assistance with the Commission's formal or expedited complaint procedure by contacting the Public Advisor's office at:

CPUC - Public Advisor

505 Van Ness Avenue, Room 5303

San Francisco, CA 94102

(415) 703-2074

Email: public.advisor@cpuc.ca.gov

Consumer: A member of the public at large, who subscribes, or may potentially subscribe to a utility service for personal or household use as defined in Civil Code Section 1761.D, or for business or commercial use.

Consumer Affairs Branch: The CPUC office where consumers may complain about a telephone, gas or electric utility service or billing problem within California, which they have not been able to resolve with the utility. Consumers may write or call the CPUC at:

CPUC, Consumer Affairs Branch

505 Van Ness Avenue, Room 2003,

San Francisco, CA 94102

Or; email to "consumer-affairs@cpuc.ca.gov"

Phone 1-415-703-1170, or 1-800-649-7570.

For TDD, call 1-800-229-6846.

The agency a consumer should contact if the matter concerns interstate or international calls is the Federal Communications Commission (FCC) at:

FCC, Common Carrier Bureau

Consumer Complaints

Mail Stop 1600 A2

Washington, DC 20554

Or via the Internet, at www.fcc.gov/ccb/enforce/

Customer or Subscriber: Any person, corporation, reseller or other entity that has applied for, or subscribes to utility service subject to CPUC jurisdiction.

Day: A calendar day unless otherwise noted.

Mandated fees: Fees, taxes and surcharges the FCC and CPUC require carriers to collect from their customers and remit to the regulatory or other specified authority.

Carrier rates and charges: Carrier rates and charges to recover their costs of doing business, including access charges.

Rule 1: Carrier Disclosure

a. Carriers shall publish on its utility website the rates, charges terms and conditions of service of its publicly available residential and small business offerings.

b. A Carrier shall, upon request, immediately provide the following:

(1) Rates, charges, and terms and conditions of any of its publicly offered services, or product that would result in a charge on a phone bill, shall be provided in writing to the consumer requesting such.

(2) The carrier's registration number (Cal. PUC U-#) and all legal "doing business as" names used in providing telecommunications services within California.

(3) The address and toll free telephone number of the CPUC Consumer Affairs Branch to verify its registration number, or to file a complaint.

(4) A toll-free number to call for service information or billing inquiries, and an address where the customer may write the utility to resolve service or billing disputes.

(5) The address and phone number of all companies whose charges appear in the carrier's monthly statements.

(6) An explanation of how the carrier handles customer private information, and a disclosure of any ways that such information might be used or transferred.

c. Although no terms may be incorporated by reference, formulae may be used to calculate rates or charges where the components of the formulae can be readily ascertained from a public source.

Rule 2: Marketing Practices

a. All solicitations by carriers or their agents provided to customers shall be legible and printed in 10-point type or larger.

b. All promotional and marketing materials used in the offering of telecommunications services shall be wholly separate from any service agreement or written contract the customer may sign.

c. All terms shall be plainly stated in understandable language, and shall be in the same language employed when the carrier negotiated a service agreement or contract with the customer.

d. Marketing materials may not misrepresent rates, terms and conditions of service. Marketing materials that misrepresent rates, terms and conditions of service in the customer's favor shall be applicable. Rates and charges specific to the advertised service shall be clearly disclosed in the advertisement.

e. No carrier, person, firm, or corporation representing a carrier shall change a customer's pre-subscribed telephone service provider without the customer's authorization. Note: All carriers shall comply with the provisions of P.U. Code Section 2889.5 as well as other applicable state and federal laws as they may be amended or superseded from time to time).

f. No carrier whose service has been cancelled by a customer shall re-establish service for that customer without a new customer authorization. Authorization may not be founded upon any term in a written agreement for service that binds the customer to again take service from the carrier for a specified term, or continually.

Rule 3: Service Initiation for Subscribed Services

a. Services may be initiated based on a written, electronic or oral agreement. In each case, all ambiguities in the agreement will be construed against the carrier.

b. Carriers shall provide a written record to the consumer of an order within seven (7) days of securing that order.

c. All rates, terms, and conditions of service shall be provided to the customer in writing, electronic or otherwise, within 7 days of establishing service.

d. Agreements containing any cancellation (early termination) charges shall be clearly identified, in no less than 10 point type, in writing and signed by the customer in acceptance of the cancellation agreement.

e. All disputed oral and written authorizations for which no record of verification is available are subject to a rebuttable presumption that the charges are unauthorized.

f. Consumers shall not be liable for services not ordered as defined in P.U. Code Section 2890.

g. Charges for "customer activated services" are not authorized unless the consumer knowingly and affirmatively activates the service by dialing or some other affirmative means. Going from "onhook" to "offhook" (e.g., lifting the receiver) shall not in itself activate a charge without an associated affirmative means.

Rule 4: Additional Rules for Local Exchange Service Initiation:

a. Carriers providing local exchange services shall provide potential customers initiating residential "Local Exchange Service", with information on the following:

(1) Availability, eligibility requirements and discounts associated with the Universal Lifeline and Deaf and Disabled Trust Programs.

(2) Availability and effect of freezing the "pre-subscribed" carrier assigned to the account.

(3) Availability and effect of toll restriction.

(4) Availability and effect of blocking of 900 and 976 pay-per-call telephone information services at the time service is ordered. This blocking service shall be made available free of charge to residential customers, although carrier may impose a charge if the customer asks for the deactivation of blocking.

(5) Availability and effect of blocking non-telecommunication related service from being billed within the telephone bill.

(6) Availability and effect of blocking non-presubscribed carrier (e.g., third party) charges from being billed on the telephone bill.

(7) Availability and effect of withholding the caller's telephone number, and/or name or information on an individual call basis and line-blocking basis, from the telephone instrument of the individual receiving the telephone call placed by the caller.

b. Applicants for service who are denied service shall be provided reasons for denial within 10 days of the service denial. Denial shall be provided in writing if the customer requests a "written denial".

c. The utility shall provide a customer a four-hour time period in which it will arrive to install or repair service when customer presence is required. If the carrier fails to install or repair basic telephone service within that time period, the carrier shall provide a $25 credit to the customer independent of any civil action by the customer, e.g., Civil Code Section 1722.

Rule 5: Local Exchange Service Credit and Deposits

a. A deposit in lieu of satisfactory credit for service cannot be refused.

b. In no event shall the deposit be more than twice the average customer bill, except that if the customer does not pay the balance owed to a previous serving utility within thirty days, a separate, additional deposit may be required.

c. When deposits are accepted, interest will be added to the amount on deposit using an annual percentage rate of no less than 5%. Deposit amounts used to pay a delinquent bill shall receive interest for the period during which it was held on deposit at the same rate.

d. Any deposits less the amount of any unpaid bills for service furnished by the carrier shall be refunded with interest, as described in paragraph (c) of this rule, within 30 days after the discontinuance of service, or after one year if applicant has established a record of payment in compliance with the carrier's terms, whichever is earlier.

Rule 6: Billing

Telephone bills may not contain charges for non-telecommunications related services. Each bill for telephone service shall contain notations concerning the following areas:

a. Carrier's name and "FCC # or Cal. PUC U-#".

b. Bill mailing date.

c. Payment due date.

d. Period of service covered by the bill.

e. Late payment charge (if applicable) and when applied.

f. How and where to pay the bill.

g. Company's toll-free number for answering billing and service questions and to address disputes.

h. Billing detail including a clear and concise description of each service or product, and separately identified rates and charges.

i. Mandated fees, taxes and surcharges shall be separately and appropriately identified as "mandated fees", specifying the specific fund title and charge amount. Carrier rates and charges may not be construed as fees, taxes or surcharges and may not be included in the "mandated fees" portion of the carrier bill.

j. Services appearing upon the telecommunications bill for the first time shall be identified as "New".

In addition to the above, each bill rendered for intrastate service shall include the following, or factually similar statements:

"If you have a billing or service complaint which you have not been able to resolve with the utility, you may write or call;

CPUC, Consumer Affairs Branch

505 Van Ness Avenue, Room 2003

San Francisco, CA 94102

Toll Free at 1-800-649-7570 or TDD 1-800-229-6846

Email: consumer-affairs@cpuc.ca.gov

If your complaint concerns interstate or international calls, you should contact the Federal Communications Commission (FCC) at:

Common Carrier Bureau

Consumer Complaints

Mail Stop 1600 A2

Washington, DC 20554"

Rule 7: Late payment, Back-billing, and Prorating of Charges

a. Late Payment Charges. A late payment charge of not more than 1.5% per month may be applied to the undisputed, overdue telephone bill amount. The bill amount becomes overdue when the utility or agent does not receive payment on or before the payment due date. The late payment date shall not be less than 16 days after the bill mailing date. Carriers shall credit payments on the business day payments are received by the carrier or its agent, to avoid assessing late payment charges incorrectly. Late payment charges shall be credited to the customer for amounts that are in dispute. Late payment charges shall not be applied to amounts in dispute that are resolved in the customer's favor.

b. Backbilling. A bill shall not include any previously unbilled charge for intrastate service furnished prior to three months immediately preceding the date of the bill, four months in the case of CMRS "roamer" charges on a foreign system, and five months for collect and 3^rd party billed calls. A backbilling period of one and one-half years will be permitted in cases involving customer fraud. Customers are permitted a period of three years to seek redress in the case of utility over-billing.

c. Prorating Charges. Carriers shall prorate customer monthly recurring charges for service for partial months. A 30-day month may be used for prorating in lieu of calendar days.

Rule 8: Notices of Change in Service Terms and of Ownership

a. All affected customers shall be notified of any increase in rates, charges, or change in terms and conditions contained in an agreement that negatively impact the customer, at least 15 calendar days before the change becomes effective, with the exception of mandated fees.

b. Any notice the carrier sends to customers, or the Commission, shall be legible and printed in a 10-point type or larger. Such notice shall be sent via first class mail or through electronic means agreeable to the customer. Notice shall contain the carrier's name and "FCC #" or "Cal. PUC U-#".

c. No change in the rates, terms, and conditions of any service specified in a written contract shall be enforceable unless such change is set forth in writing signed by the customer who signed the original contract, or that customer's duly authorized agent.

d. Customers shall be notified of any change of ownership of the company providing service to the customer as follows:

(1) The notice shall be in writing.

(2) The carrier shall provide it to customers no later than 30 days before the proposed transfer.

(3) The notice shall contain a straightforward description of the upcoming transfer, any change in the customer's service agreement, a statement of the customer's right to switch to another carrier, and a toll-free telephone number for questions.

Rule 9: Service Termination and Notice

a. Any deposits, less the undisputed amount of any unpaid bills for service furnished by the carrier, shall be refunded within 30 days after the discontinuance of service, or after one year if applicant has established a record of payment in compliance with the carrier's terms, whichever is earlier.

b. Notices to terminate service for nonpayment of bills shall be provided in writing to the customer not less than 7 calendar days prior to termination, with the exception of termination for customer acts of fraud.

c. Carriers may not disconnect local exchange or long distance telephone service for failure to pay disputed charges for "information services" (non-telecommunications related services) or separately billed charges of other telephone companies, pursuant to P.U. Code Sections 2884 - 2882.6 and 2889 - 2889.2.

d. Each notice of termination shall include all of the following information:

(1) Carrier's name and "FCC #" or "Cal. PUC U-#".

(2) The name and address of the customer whose account is delinquent.

(3) The amount that is delinquent.

(4) The date when payment or arrangements for payment are required in order to avoid termination.

(5) The toll-free telephone number of a representative of the carrier who can provide customer assistance.

(6) The utility procedure the customer may use to initiate a complaint or to request an investigation concerning service, rates, or charges.

(7) The telephone number of the Commission's Consumer Affairs Branch where the customer may direct inquiries.

Rule 10: Additional Rules for Termination of Local Exchange Service

a. Service may be discontinued for nonpayment of bills, provided notice of the proposed discontinuance is provided pursuant to Rule 7, or acts of the customer are such as to indicate intention to defraud the carrier. This includes fraudulently placing and receiving calls and/or providing false credit information. In cases of customer acts of fraud, the carrier shall have the right to refuse or discontinue service without advance notice. The rules in Commission Decision 91188, regarding discontinuance of service related to criminal prosecution, will remain in effect for carriers.

b. Carriers may not disconnect service on any day carrier service representatives are not available to serve customers.

c. Carriers may not disconnect local service for non-payment of another carrier's long-distance service.

d. The customer shall be informed of the availability of an alternative payment plan, and if such arrangement is agreed to, the customer shall be informed in writing of the terms of such arrangement.

Rule 11: Billing and Service Disputes

a. In the case of a billing dispute between a customer and the carrier, the carrier will investigate and review the disputed amount.

b. If a customer fails to pay the undisputed portion of the bill by the Payment Due Date (no sooner than fifteen days after the bill mailing date) shown on the bill, the carrier may notify the customer in writing of such delinquency and indicate that service may be terminated.

c. A carrier may not disconnect service to a customer within seven calendar days after the date the carrier notifies the customer that the carrier's investigation and review are completed. In no event shall the carrier disconnect service prior to the "due date" shown on the bill.

d. A carrier may not disconnect service to a customer if the customer has submitted a pending claim to CAB for informal review, and deposited the disputed amount with the Commission, so long as the undisputed amount has been paid.

e. The customer has a right to bring a complaint to the CPUC without being held liable for utility legal costs.

Rule 12: Privacy

a. Service terms and conditions of service shall clearly state consumer privacy rights and the ways in which personal information may be used.

b. Information related to a customer's telephone number shall not be resold to third parties or shared with affiliates. Providers may release customer information to a third party or affiliate only with the written consent of the customer.

c. Local Exchange Service providers shall present new and upgraded services with privacy implications for Commission review and approval before they market these services to the public, pursuant to General Order 96B.

d. Consumers shall be given the opportunity to block on a per-call and per-line basis at no extra charge, new services that have a privacy implication.

e. The collection of customer information shall be limited to that which is necessary to provide phone service.

f. Customer requests to access information the carrier may have regarding the customer shall be honored.

g. As a means to control unreasonable intrusions upon their privacy, customer requests to be removed from sales solicitation lists shall be honored.

h. Carriers are restricted from releasing nonpublic customer information in accordance with P.U. Code Sections 2891, 2891.1, and 2893, and any other applicable state or federal statutes or regulations, as they may be amended from time to time, that pertain to customer privacy. Carriers shall also comply, so long as those rules remain generally applicable to other carriers, with the Commission's rules set forth in Appendix B of Decision Nos. 92860 and 93361, as modified, which generally prohibit, with certain exceptions, the release of calling records and credit information of all subscribers - both residential and business - absent the receipt of a search warrant under federal or state authorities or in response to a subpoena or subpoena duces tecum authorized by a federal or state judge.

Rule 13: Staff Requests

The carrier shall fully comply with a request for documents or information by the Commission or its staff no later than ten business days from the date of request. This includes but is not limited to the customer-carrier service agreement or contract, billing records, customer calling records, solicitations and correspondence from the carrier to the customer, applicable third party verifications, and any other information or documentation regarding a customer complaint.

Rule 14: Employee Identification

Each carrier shall cause any employee or contract employee to be issued an identification card, if in the course of employment the employee will be requesting entry into any building or structure, and shall require the employee to present such card to a customer. Each carrier shall cause each employee to identify himself or herself at the request of any applicant or customer in a telephone conversation with his or her first and last name or a unique employee identifier.

Rule 15: Emergency 911 Service

All carriers providing access services shall, to the extent permitted by facilities, provide connection with "911" emergency services regardless of whether the account has been established or terminated as require by P.U. Code Section 2883 and federal statutes.