DECISION ON APPEAL OF COMMISSIONER NEEPER
(Mailed 7/13/200)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
The Utility Consumers' Action Network, Complainant, vs. Pacific Bell (U 1001 C), Defendant. |
Case 98-04-004 (Filed April 6, 1998) |
|
And Related Matters. |
Case 98-06-003 (Filed June 1, 1998) Case 98-06-027 (Filed June 8, 1998) Case 98-06-049 (Filed June 24, 1998) Investigation 90-02-047 (Filed February 23, 1990) |
FINAL OPINION ON PACIFIC BELL'S
MARKETING PRACTICES AND STRATEGIES
(Appearances are listed in Attachment A.)
TABLE OF CONTENTS
Title Page
FINAL OPINION 2
1. Summary 2
2. Procedural History 3
2.1. Requests to Reopen The Record 5
3. Changes to the Presiding Officer's Decision 6
4. Disputed Material Facts 7
5. Witnesses Presented 7
5.1. UCAN 7
5.2. Greenlining 8
5.3. ORA 8
5.4. TIU 8
5.5. Pacific Bell 9
5.6. Wallace Roberts 10
6. Burden of Proof 10
7. Statutory and Decisional Standards Applicable to Pacific Bell's
Duty to Inform Customers 10
7.1. General Standard 11
7.2. Sufficient Information to Make Informed Choices 11
7.3. Tariff Rule 12 and Information Regarding "Packages" 13
7.3.1. Basis of Tariff Rule 12 15
7.3.2. Application of Tariff Rule 12 to Packages With
Local Exchange Service 16
7.4. Information Regarding Caller ID Blocking 16
8. Marketing Specific Services 18
8.1. Caller ID and Blocking Service 18
8.1.1. Pacific Bell's Contract With BRI 20
8.2. Anonymous Call Rejection 22
8.3. Inside Wire Maintenance Plans 23
8.3.1. Disclosure of Different Maintenance Plans 23
8.3.2. Landlord's Responsibility 25
8.3.3. Disclosure of Competing Maintenance Providers 26
8.4. The Basics and The Essentials Packages of Optional Services 28
8.5. The Basics Plus Saver Pack 32
9. Marketing Programs and Tactics 34
9.1. Offer on Every Call 34
9.2. Sequential Offerings 36
9.3. Incentives and Sales Quotas 38
10. Providing Customer Information 41
11. Marketing to Customer Groups 44
11.1. Marketing Targeted at Minorities or Recent Immigrants 44
11.2. Marketing to ULTS Customers 47
12. Prospective Changes 49
12.1. Changes to Tariff Rule 12 49
12.2. Landlord Obligation 49
Findings of Fact 50
Conclusions of Law 56
FINAL ORDER 60
1. Summary
In this decision we address a number of Pacific Bell's techniques for marketing its optional services to residential customers and find that these techniques do not violate statutory and current decisional standards. Although marketing is the overarching theme, each individual issue is fact intensive and we address each separately and in the context of the applicable standards. In this decision we find that existing statutory and decisional standards do not require Pacific Bell to present to customers all information regarding (1) the number blocking options to prevent a caller's number from being displayed on a Caller ID device, (2) the two inside wire maintenance plans it offers, and (3) lesser priced packages. In its marketing of "The Basics," a package of optional services, we conclude that Pacific Bell dispels any impression that the name inaccurately suggests a relationship with basic telephone service.
We also find in favor of Pacific Bell on several issues raised by complainants. First, no law or decision precludes customers who do not wish to receive calls from lines with numbers blocked from Caller ID from rejecting such calls and purchasing services from Pacific Bell to prevent such calls from being presented to their telephone. This service is called Anonymous Call Rejection.
Second, no law or decision prohibits Pacific Bell from requiring all service representatives to offer optional services on every call, so long as the call answering standards of General Order (GO) 133-B are met.
Third, the statutory and decisional standards that apply to Pacific Bell's marketing efforts make no distinctions based on ethnicity or duration of residency in this country. Hence, the request of some complainants that we hold Pacific Bell to a different disclosure standard for certain groups of customers is denied.
Finally, although Pacific Bell is subject to stringent federal and state regulations regarding the privacy of customers' information, those standards do not prevent Pacific Bell from providing customer information, subject to appropriate security measures, to its agents and affiliates for Pacific Bell marketing purposes.
