7. Assignment of Proceeding
Geoffrey Brown is the Assigned Commissioner and Glen Walker is the assigned Administrative Law Judge in this proceeding.
1. The Commission issued this OIR for the purposes of (i) establishing an acceptable error rate for connections made by predictive dialing devices for which no agent or telemarketer is available for the person called, and (ii) establishing record-keeping procedures applicable to those who use automatic dialing devices.
2. The OIR was prompted by AB 870, which added Section 2875.5 to the Public Utilities Code.
3. Effective July 1, 2002, Section 2875.5(a) prohibits the use of predictive dialing equipment from making a telephone connection for which no person, acting as an agent or telemarketer, is available for the person called.
4. Section 2875.5(b) directs the Commission to establish an "acceptable error rate" for telephone connections made in violation of Section 2875.5(a).
5. The Commission was required to determine the error rate, if any, before July 1, 2002.
6. The type of dialing equipment at issue is known as "predictive dialing equipment" or "predictive dialers."
7. Predictive dialers may be programmed in a way that allows the operator to predict the number of calls that must be dialed before an actual person is contacted.
8. When a number is automatically dialed but answered before an agent is available to respond, generally the predictive dialing equipment after a few moments of dead air will disconnect the call.
9. On June 27, 2002, the Commission issued an interim decision (D.02-06-072) adopting an error rate of 3%, along with certain record-keeping requirements.
10. D.02-06-072 also required the Telecommunications Division to conduct a workshop to address further requirements for operators of predictive dialing equipment.
11. The Telecommunications Division workshop was conducted on September 26, 2002, and was attended by representatives from the telecommunications and telemarketing industries, as well as those from consumer and government organizations.
12. The Telecommunications Division report of the workshop was issued on December 20, 2002, and interested parties filed comments on the report on January 17, 2003.
1. The OIR's conclusion not to hold hearings in this quasi-legislative proceeding is consistent with due process, public policy and statutory requirements.
2. The rules adopted in this proceeding are not applicable to automatic dialing-announcing devices, as defined in Pub. Util. Code § 2874, or to exempted calls defined in Pub. Util. Code § 2872.
3. The acceptable error rate should be measured as a percentage of "live calls" rather than "all calls."
4. The acceptable error rate should be measured on a monthly basis.
5. An "error" should be defined as a call placed by predictive dialing equipment and answered by a live person in which (1) the predictive dialer disconnects the call after the called party has answered, or (2) the called party does not receive a response from the calling agent or telemarketer within 2 seconds of the called party's completed greeting.
6. Public utilities that violate the acceptable error rate could be subject to a penalty of $500 for each violation under Pub. Util. Code § 2876.
7. The acceptable error rate for predictive dialer hang-up calls should be set at 3% of all calls answered by an individual, measured on a monthly basis, effective as of July 1, 2002.
8. Effective July 1, 2003, telemarketers should maintain summary records tracking "connects" and "abandons" for calls made using predictive dialing equipment and such data shall be made available to the Commission upon request.
9. Information on telemarketing calls and on do-not-call registers should be posted on the Commission's website.
10. Telecommunications carriers should be directed to develop telemarketing information, subject to approval by the Commission's Public Advisor, to be included in their telephone directories.
11. Telemarketers subject to Pub. Util. Code § 2875.5 should be directed to formulate consumer education messages about telemarketing calls, subject to review and approval by the Commission's Public Advisor, to be included on at least an annual basis in an informational mailing.
IT IS ORDERED that:
1. Effective as of July 1, 2002, the acceptable error rate for telephone calls made by automatic equipment in violation of Section 2875.5(a) of the Public Utilities Code shall be 3%, measured monthly.
2. For purposes of measuring the acceptable error rate, an error is defined as a call made by automatic telephone equipment as defined in Section 2875.5 and answered by a live person in which (1) the telephone equipment disconnects the call after the called party has answered, or (2) the called party does not receive a response from the calling agent or telemarketer within 2 seconds of the called party's completed greeting.
3. Effective July 1, 2003, telemarketers subject to Section 2875.5 of the Public Utilities Code shall maintain summary records tracking (1) all predictive dialer calls answered by a live person, and (2) all predictive dialer calls in which either the dialer disconnects the call after the called party has answered, or the called party does not receive a response from the calling agent within 2 seconds of the called party's completed greeting. The call records in the second category shall include the date and time of each call, and the number called, including area code.
4. Records compiled in compliance with this order shall be maintained for a period of at least one year and shall be made available to the Commission upon request. Records shall be maintained for a period of more than one year upon the request of a Commission division director.
5. Telecommunications carriers subject to the jurisdiction of this Commission are directed to develop telemarketing information, subject to approval by the Commission's Public Advisor, to be included in their telephone directories.
6. Telemarketers subject to Pub. Util. Code § 2875.5 are directed to formulate consumer education messages about telemarketing calls, subject to review and approval by the Commission's Public Advisor, to be included on at least an annual basis in an informational mailing.
7. This proceeding is closed.
This order is effective today.
Dated ____________________, at San Francisco, California.
