PART 2 - Consumer Protection Rules
1. These rules are applicable to all telecommunications carriers, including wireless carriers, unless expressly exempted in these rules or by Commission order. Acts of an agent on behalf of a carrier are considered acts of the carrier for purposes of these rules.
2. These rules represent minimum standards. Compliance with these rules does not relieve carriers of other obligations they may have under their tariffs, other Commission general orders and decisions, Federal Communications Commission (FCC) orders, and state and federal statutes.
3. These rules are not intended to and do not create a private right of action to impose liability on carriers or other utilities for damages, which liability would not exist had these rules not been adopted.
4. Except as specifically provided in these rules, the provisions of these rules may not be waived by contract. Any provision in a contract to provide service for an individual or small business subscriber that purports to waive any requirement set forth in these rules is contrary to public policy and is of no effect.
5. These rules do not limit any rights a consumer may have and do not preclude any civil action or remedies that may be available by law.
6. For services offered under the Universal Lifeline Telephone Service program, carriers shall also comply with the requirements set forth in General Order 153, Procedures for Administration of the Moore Universal Telephone Service Act where they apply. The requirements of General Order 153 take precedence over these rules whenever there is a conflict between them for services offered under the Universal Lifeline Telephone Service program.
Rule 1: Disclosure Requirements including Non-English Language Specifications
(a) Every carrier shall provide the following upon request by any subscriber or other member of the public:
(1) The carrier's legal name, its designated utility number, and the names under which the carrier offers regulated telecommunications service in California.
(2) A description of the carrier's service offerings available that relate to the customer's inquiry and the applicable key rates, terms and conditions.
(3) The address and toll-free telephone number of the Commission's Consumer Affairs Branch.
(4) A description of customers' privacy rights and how the carrier handles confidential subscriber information.
(b) If a language other than English is used in the advertising, promotion or offer of a carrier's services, the written authorization for service, contract or confirmation and the information requirements of Rules 2 and 3, shall also be in that language.
(c) If a language other than English is used in the advertising or promotion of the card or prepaid calling services or is used on the card or packaging, the information required by Rule 4(c) shall also be disclosed in that language on the card or packaging and in the point of sale disclosure in the manner described in Rule 4(c).
(a) Statements about rates and services that are deceptive, untrue or misleading are prohibited.
(b) All terms of a written confirmation, authorization, order, agreement or contract shall be clear and conspicuous and otherwise in compliance with existing law.
(c) Written authorization for service shall be a separate document from all solicitation materials, and such written authorization may not constitute entry forms for sweepstakes, contests, or any other program that offers prizes or gifts.
Rule 3: Service Initiation and Changes
(a) Carriers may initiate or change service upon request (in any form) from a consumer or subscriber.
(b) Carriers shall provide consumers initiating a service with information to enable consumers to make informed choices among services, and shall clearly and conspicuously disclose in the course of the sale transaction the consumer's right to cancel a term contract.
(c) The carrier shall provide a short summary document listing the key terms and conditions of the services purchase at the point of sale.
(d) The carrier shall provide the subscriber a written contract or confirmation of the order, as applicable, at the point of sale for in person transactions and, for any other transaction, not later than ten days after it is accepted, or ten days after the carrier providing the service is notified of the order originated through another carrier. The key rates, terms and conditions for each service ordered shall be set forth clearly and conspicuously in the confirmation or contract.
(e) If a confirmation or contract incorporates information by reference, the confirmation or contract shall (i) provide an Internet web site address where the specific document can be found, and (ii) state that a printed copy of the referenced documents is available on request at no charge.
(f) Subscribers may cancel without termination fees or penalties any new tariffed service or any new contract for service within 30 days after the new service is initiated. This Rule does not relieve the subscriber from payment for per use and normal recurring charges applicable to the service incurred before canceling, or for the reasonable cost of work done on the customer's premises (such as wiring or equipment installation) before the subscriber canceled.
(g) A carrier may require a deposit to establish or re-establish service only if an applicant for service is unable to demonstrate acceptable credit to the satisfaction of the carrier.
(1) A carrier shall not deny service for failure to provide a social security number. Where a consumer chooses not to provide a social security number, the carrier may deny service if the subscriber does not provide other identification information sufficient to enable the carrier to verify the subscriber's identity and run a credit check.
(2) Carriers shall refund, with interest, deposit amounts associated with basic service after one continuous year of timely payments for basic service, and not later than 30 days after basic service is discontinued. Carriers shall refund deposits associated with other services not later than 120 days after service is discontinued.
(h) When a carrier denies an application for a telecommunications service subject to Commission jurisdiction, the carrier shall inform the applicant of the reasons within 10 days thereafter. The carrier's reasons shall be provided in writing unless the applicant agrees to accept a different form of notice.
(i) No carrier whose service has been cancelled at the subscriber's request shall re-establish service for that subscriber without a new subscriber authorization. Authorization may not be founded upon any term in an agreement for service that binds the subscriber to again take service from the carrier.
Comment: Requiring a subscriber who cancels a service or contract before the term is completed to nonetheless pay the recurring charges for more than the remainder of the billing period, or for more than one month if the billing period exceeds one month, constitutes imposing a penalty.
Rule 4: Prepaid Calling Cards and Services
The following standards and requirements for consumer disclosure and services shall apply to the advertising and sale of prepaid calling cards and prepaid calling services by entities subject to Public Utilities Code Sections 885 and 886.
(a) All advertisement of the price, rate, or unit value in connection with the sale of prepaid calling cards or services shall include a disclosure of any geographic limitation to the advertised price, rate, or unit value, as well as a disclosure of additional surcharges, call setup charges, or fees or surcharges applicable to the advertised price, rate, or unit value.
(b) The following information shall be legibly printed on the card:
(1) The name of the carrier.
(2) A toll-free customer service number.
(3) A toll-free network access number, if required to access service.
(4) The authorization code, if required to access service.
(5) The expiration date or policy, if applicable, except where Rule 4(g) applies.
(c) The carrier shall print legibly on the card or packaging, and the carrier shall require that the vendor shall make available clearly and conspicuously in a prominent area immediately proximate to the point of sale of the prepaid calling card or prepaid calling services the following information:
(1) The value of the card and all surcharges, taxes, or fees, including monthly or other periodic fees, maintenance fees, per-call access fees, surcharges for calls made on pay telephones, or surcharges for the first minute or other period of use applicable to the use of the prepaid calling card or prepaid calling services within the United States.
(2) All surcharges for international calls or, in lieu of disclosing each surcharge, the highest surcharge for any international calls applicable on that card and additional or different prices, rates, or unit values applicable to international usage of the prepaid calling card or prepaid calling services.
(3) The minimum charge per call, such as a three-minute minimum charge, if any.
(4) The definition of the term "unit," if applicable.
(5) The billing decrement.
(6) The name of the carrier.
(7) The recharge policy, if any.
(8) The refund policy, if any.
(9) The expiration policy, if any.
(10) The 24-hour customer service toll-free telephone number required in Rule 4(d).
(d) Carriers shall establish and maintain a toll-free customer service telephone number that shall meet the following requirements:
(1) A live operator shall answer incoming calls to the telephone number 24 hours a day, seven days a week.
A carrier offering prepaid cellular telephone services shall be deemed to be in compliance with the requirements of Rule 4(e)(1) for those services if, when a request for information related to those services is made outside of normal business hours, that carrier provides the information requested on the next business day.
(2) The telephone number shall have sufficient capacity and staffing to accommodate a reasonably anticipated number of calls without incurring a busy signal or undue wait. The carrier shall provide customer service in each language used on a prepaid calling card or its packaging and in the advertising or promotion of the prepaid calling card or prepaid calling services.
(3) The telephone number shall allow consumers to lodge complaints and obtain information on all of the following:
(a) All rates, surcharges, and fees.
(b) The carrier's recharge, refund, and expiration policies.
(c) The balance of use available in the consumer's account, if applicable.
(4) A carrier shall not impose a fee or surcharge related to obtaining customer service, including any charge related to connecting with the customer service number or waiting to speak to a live operator.
(e) A carrier that issues prepaid calling cards or prepaid calling services shall provide a refund to any purchaser of a prepaid calling card or prepaid calling services if the network services associated with that card or services fail to operate in a commercially reasonable manner. The refund shall be in an amount not less than the value remaining on the card or in the form of a replacement card, and shall be provided to the consumer within 60 days from the date of receipt of notification from the consumer that the card has failed to operate in a commercially reasonable manner.
(f) Cards without a specific expiration date or policy printed on the card, and with a balance of service remaining, shall be considered active for a minimum of one year from the date of purchase, or if recharged, from the date of the last recharge.
(g) In the case of prepaid calling cards or services utilized at a pay phone, the carrier is permitted to provide voice prompt notification of all applicable pay phone surcharges, in lieu of providing notice of surcharges as required by Rule 4(a) and by Rule 4(c)(1), given that the carrier provides users of prepaid calling cards or services with reasonable time to terminate the call after notification of applicable pay phone surcharges without incurring any charge for the call.
(h) A carrier shall maintain access numbers with sufficient capacity to accommodate a reasonably anticipated number of calls without incurring a busy signal or undue delay.
(i) A carrier shall not impose fees or surcharges that are not disclosed as required by this section or that exceed the amount disclosed by the carrier.
(j) A carrier shall not impose charges if the consumer is not connected to the number called. For the purpose of this paragraph, the customer shall not be considered connected to the number called if the customer receives a busy signal or the call is unanswered.
(k) The value of the card and the amount of the various charges, however denominated, that are required to be disclosed by Rule 4(c), shall be expressed in the same format. If the value of a card is expressed in minutes, the minutes shall be identified as domestic or international and the identification shall be printed on the same line or next line as the value of the card in minutes.
(a) Telephone bills may only contain charges for products and services the purchase of which the subscriber has authorized. Services and charges must be clearly labeled with language that is not misleading. Carriers shall not label or describe non government fees or charges in a way that could mislead consumers to believe those charges are remitted to the government.
Bills must be based on the rates in effect at the time the service was used. Charges for basic service shall be prorated for partial months. Charges for non-communications-related products and services may be included in a telephone bill, or in the same envelope as a telephone bill, only if they meet the requirements of Part 3, Rules Governing Billing for Non-communications-Related Charges, of this General Order.
(b) Telephone bills shall contain the following information:
(1) The name of the billing carrier and the service provider associated with each charge must be clearly and conspicuously identified on the telephone bill. Certificated carriers shall use the name that appears on their Certificate of Public Convenience and Necessity, or any fictitious business names that are properly registered pursuant to Business and Professions Code §§ 17900 et seq. and registered with the Commission's Telecommunications Division. For carriers not certificated by the Commission, the bill shall include the name under which the carrier is certificated by the FCC, if applicable, or the carrier's legal name as registered with the California Secretary of State;
(2) The period of service covered by the bill. A bill shall not include any previously unbilled charges for intrastate service, wireless roaming charges on a system other than the subscriber's home system, or collect, third-party, and calling cards calls furnished prior to four months immediately preceding the date of the bill. This limitation on backbilling does not apply in cases involving subscriber fraud.
(3) The payment due date;
(4) The late payment charge (if applicable) and date after which it may be applied;
(5) Instructions on how to pay; and,
(6) The carrier's toll-free number for billing inquiries and disputes, along with a postal address, or an e-mail address if the subscriber has agreed to communicate via electronic media, where the subscriber may send a billing inquiry or complaint in writing.
(c) Any carrier or billing agent that charges subscribers for products or services on a telephone bill shall include, or cause to be included, in the telephone bill the amount being charged for each product or service, and a clear and concise description of the service, product, or other offering for which a charge has been imposed.
(d) Where a telephone bill contains both charges for basic residential or single line business service and other charges, the bill must distinguish between charges for which non-payment will result in disconnection of basic residential or single line business service, and charges for which non-payment will not result in such disconnection. The carrier must explain this distinction to the subscriber.
(e) Where charges for two or more carriers appear on the same telephone bill, the charges must be separated by service provider. This rule does not apply to wireless roaming charges.
(f) Telephone bills shall clearly and conspicuously identify any change in service provider, including identification of charges from any new service provider. For purposes of this rule, "new service provider" means a service provider that did not bill the subscriber for service during the service provider's previous billing cycle. This definition shall include only providers that have continuing relationships with the subscriber that will result in periodic charges on the subscriber's bill until the service is canceled.
(g) In addition to the billing requirements above, each bill shall include the following statement in clear, readable type:
If you have a complaint you cannot resolve with us, contact the California Public Utilities Commission at 1-800-649-7570 or TDD 1-800-229-6846.
If your complaint concerns interstate or international calling, contact the FCC at 1-888-225-5322, or TTY 1-888-835-5322.
(h) A carrier shall credit payments effective the business day payments are received by the carrier or its agent. Subscribers shall not be liable for late payment charges on disputed amounts that are resolved in the subscriber's favor.
(i) Upon request by any subscriber, including any former subscriber for whom, in the judgment of either the carrier or the subscriber, charges or credits are still pending, every carrier shall provide the following information within 3 business days from the date the request is received:
(1) A description of each service for which charges appear(ed) on the subscriber's bill, and sufficient information regarding that service to respond to the subscriber's inquiry.
(2) For any charges the carrier has placed on the bill on behalf of another entity, but for which the carrier does not handle inquiries, disputes and complaints: the name of the other entity, and a toll-free telephone number the subscriber may call for inquiries, disputes and complaints related to those charges.
Comment: The naming requirements were established by D.00-03-020 as modified by D.00-11-015. Carriers that provide service under a trade name that differs from the name required by this rule are free to place that trade name on the bill in addition to, but not instead of, the name required by this rule.
Rule 6: Tariff Changes, Contract Changes, Withdrawals and Notices
(a) A carrier shall notify all affected subscribers at least 25 days in advance of every proposed change in its subscribers' service agreements or non-term contracts that may result in higher rates or charges or more restrictive terms or conditions. The subscriber notice shall, in a clear and conspicuous manner, describe the current and proposed rates, terms or conditions, as appropriate. Where required by D.02-01-038 (or General Order 96-B, when issued), the notice must also describe the reason for the proposed change to a rate or charge and state the impact of the change in dollar and percentage terms.
(b) A carrier shall notify each affected subscriber at least 25 days in advance of every request to the Commission to withdraw service. The notice must describe the proposed withdrawal and proposed effective date, state that subscribers have the right to choose another utility, and provide the carrier's toll-free customer service telephone number for responding to subscribers' questions. If the service to be withdrawn is basic service (as defined in these rules), the carrier must also: explain in the notice that the withdrawal is contingent on Commission approval; arrange with the default carrier(s) for continuity of service to affected subscribers who fail to choose another utility and describe in the notice those arrangements and the subscribers' right to receive basic service from the underlying carrier or carrier of last resort; and provide the default carrier's name and toll-free number.
(c) Notices required in these Rules shall be in writing by one or a combination of bill inserts, notices printed on bills, or separate notices sent by first class mail. In each case, an electronic notice may be substituted where the subscriber has agreed to receive notice in that manner. Notice by first class mail is complete when the document is deposited in the mail; and electronic notice is complete upon successful transmission (as defined in Cal. Civil Code § 1633.15(b)). Every notice in whatever form shall be unambiguous, legible, and otherwise in compliance with existing law.
Comment: Rule 6(a) applies only to the carrier's rates (as defined), terms and conditions, and thus excludes government taxes, surcharges or fees for which the carrier has no discretion to collect and are remitted to government.
(a) Carriers shall provide notices in writing, including text messages, to subscribers whose payments are overdue not less than 7 calendar days prior to terminating service for nonpayment. Each termination notice shall include all of the following:
(1) Carrier's name, following the same designation guideline used in Rule 5(b)(1) above.
(2) The name and address of the subscriber, and the telephone number(s) associated with the delinquent account.
(3) Information sufficient for the subscriber to identify what service(s) are to be terminated, and the delinquent amount(s). If basic service is to be disconnected, the notice shall state the minimum amount that must be paid to retain basic service.
(4) The time or date by which payment, or arrangement for payment, must be made to avoid termination.
(5) A toll-free telephone number to reach a carrier service representative who can provide subscriber assistance.
(6) The telephone number of the Commission's Consumer Affairs Branch where the subscriber may direct inquiries.
Rule 7(a) and Rule 8(b) do not apply to termination of non-tariffed service for having reached either: (i) a usage or spending limit, prepaid or otherwise, that was arranged with the subscriber in advance; or (ii) the end of a prepaid period of service known to and anticipated by the subscriber in advance.
(b) Basic exchange service may not be disconnected on any day carrier service representatives are not available to assist subscribers.
(c) The notice and disconnection requirements of Rule 7 and Rule 8(b) do not apply where the subscriber's acts or omissions demonstrate an intention to defraud the carrier, or threaten the integrity or security of the carrier's operations or facilities.
(d) Carriers of last resort may not disconnect basic residential or single line business service, either flat rate or measured rate, for nonpayment of any charge other than non-recurring or recurring charges for that same service, including government mandated fees and taxes calculated on that service that are remitted to government.
(e) Unless the subscriber directs otherwise, any payment made by a subscriber shall be applied first to any overdue amount of basic service, any other overdue amount, and then any amount due for basic service.
(f) Where a subscriber is offered and agrees to an alternative payment plan, the carrier must provide confirmation of the terms in writing if the subscriber so requests.
(a) In the case of a billing dispute between a subscriber and a carrier, the carrier shall investigate the charge(s) the subscriber has informed the carrier are in question, and shall reach a determination and communicate it to the subscriber within 30 days. During the time the investigation is pending, no late charges or penalties may be collected, the charge may not be sent to collection, and no adverse credit report may be made based on non-payment of the charge. If the subscriber prevails, then no late charge or penalty may be imposed on the amount in dispute.
(b) All disputed charges for any telecommunications service are subject to a rebuttable presumption that the charges are unauthorized unless there is (i) a record of affirmative subscriber authorization; (ii) a demonstrated pattern of knowledgeable past use; or (iii) other persuasive evidence of authorization.
(c) Except as provided in Rules 7(a) and (c), a carrier shall not disconnect service to a subscriber for non-payment of a disputed amount before seven calendar days after the date the carrier notifies the subscriber in writing of the results of its investigation.
(d) A carrier may not disconnect service to a subscriber for nonpayment of a disputed amount if the subscriber has: (a) submitted a claim to CAB for informal review; and (b) deposited the disputed amount with the Commission. During the time any CAB review is pending, no late charges or penalties may be imposed or collected, the charge may not be sent to collection, and no adverse credit report may be made based on non-payment of the charge.
(e) Carriers shall not hold subscribers liable for carrier costs resulting from complaints before the Commission, arbitrators, the courts or another agency.
Comment: The rules in Part 3 supersede Rules 8(a),(b), and (c) when the dispute involves billings for non-communications related charges.
Rule 9: Employee Identification
(a) Every carrier shall prepare and issue to every employee who, in the course of his or her employment, has occasion to enter the premises of subscribers of the carrier or applicants for service, an identification card in a distinctive format having a photograph of the employee. The carrier shall require every employee to present the card upon requesting entry into any building or structure on the premises of an applicant or subscriber.
(b) Every carrier shall require its employees to identify themselves at the request of any applicant or subscriber during a telephone or in-person conversation, using a real name or other unique identifier.
(c) No carrier shall misrepresent, or allow its employees to misrepresent, its association or affiliation with a telephone carrier when soliciting, inducing, or otherwise implementing the subscriber's agreement to purchase products or services, and have the charge for the product or service appear on the subscriber's telephone bill.
Rule 10: Emergency 911 Service
All carriers providing end-user access to the public switched telephone network shall, to the extent permitted by existing technology or facilities, provide every residential telephone connection, and every wireless device technologically compatible with its system, with access to 911 emergency service regardless of whether an account has been established. No carrier shall terminate such access to 911 emergency service for non-payment of any delinquent account or indebtedness owed to the carrier.
Affiliate: A person or entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, another person or entity. For purposes of this paragraph, the term "own" means to own or control an equity interest (or the equivalent thereof) of more than 10 percent.
Comment: See 47 U.S.C. § 153(1).
Agent: A person or entity considered an agent under California law.
Basic Service: A minimum level of telecommunications service, as defined in D.96-10-066 and as may be changed by later decisions, which each carrier offering local exchange service is required to provide to all of its residential customers who request local exchange service. Also referred to as "basic exchange service."
Carrier: A telecommunications provider subject to the Commission's jurisdiction, including wireless carriers. "Carrier" also includes all entities offering telephone services via telephone prepaid debit cards who are required to obtain operating authority or register with the Commission as specified in Public Utilities Code Section 885. A carrier shall do everything necessary and proper to secure compliance with these rules by all of its officers, agents and employees.
"LEC" refers to local exchange carriers; "ILEC" refers to incumbent local exchange carriers; "CLC" refers to competitive local exchange carriers; "IEC" refers to interexchange carriers; and "CMRS" refers to commercial mobile radio service carriers.
Clear and Conspicuous: A statement as interpreted under California Law.
Comment: For example, a statement is clear and conspicuous if it is presented in a manner that is readily noticeable, readable, audible, and understandable to the audience to whom it is disseminated. Typeface, print contrast, paragraph breaks, layout, use of headings, space or margins are some of the elements that may be considered in determining whether a confirmation, authorization, order, agreement or contract is clear and conspicuous.
Commission: California Public Utilities Commission.
Consumer: An individual or small business which purchases or subscribes, or may potentially purchase or subscribe, to any product or service provided or billed by a carrier.
Consumer Affairs Branch (CAB): The Commission office where California consumers file complaints about a utility service or billing problem they have not been able to resolve with the utility.
Day: A calendar day unless otherwise indicated.
Employee: Includes, for purposes of these rules, employees, contract employees, contractor employees, agents, and carrier representatives of all types.
Key Rates, Terms and Conditions: A provision imposed by a carrier to which a subscriber is bound (through, e.g., the carrier's tariffs, service agreements, contracts, operating practices, billing practices, system limitations, etc.) that increases a subscriber's bill or limits a subscriber's use of a product or service. Key rates, terms and conditions include, but are not limited to, the following when directly related to the telecommunications services provided:
Service activation or installation charges, periodic recurring charges, per-unit usage charges, usage allowances, minimum charges, surcharges or fees (other than taxes and mandated surcharges required to be collected from subscribers and remitted to government), usage restrictions, geographic limitations, time of use distinctions (e.g., peak/off-peak), term of service, termination fees or penalties, and required bundling arrangements.
Non-Communications-Related: As defined or used in Part 4, Rules Governing Billing for Non-Communications-Related Charges, of this General Order.
Prepaid Calling Card; Prepaid Telephone Debit Card: An object containing an access number and authorization code that enables a consumer to use prepaid calling services. It does not include an object of that type used for promotional purposes.
Prepaid Calling Service: A prepaid telecommunications service that allows consumers to originate calls through an access number and authorization code, whether manually or electronically dialed.
Rates and/or Charges: An amount(s) requested to be paid by the user of a telecommunications service including charges, surcharges and fees, over which a carrier has discretion to charge. Unless otherwise indicated, "rates" includes any subscriber line charges (also known as the end user common line charge) authorized by the Federal Communications Commission.
Small Business: A business that subscribes for not more than twenty telephone access lines from any single carrier, or an individual who subscribes directly for not more than twenty access lines from a single carrier for business use or combination business and personal use. A business or individual subscribing to more than one T-1 lines may not be considered a small business customer. For purposes of these rules, all entities other than individuals (e.g., government and quasi-governmental agencies, associations, etc.) meeting the twenty-access and one T-1 line limits are treated identically with small businesses. A business is defined by a billed account.
Subscriber: An individual or small business that purchases or subscribes to a telecommunications service subject to Commission jurisdiction. Also referred to as a "customer."
Transfer: A transfer of subscribers in which the transferee would replace the transferring utility for some or all of the latter's subscribers. A transfer of subscribers does not include a transfer at the corporate level that does not affect the underlying utility or subscribers.
Comment: This definition is intended to be consistent with the definition of "transfer of customers" in D.02-01-038.
Type of Service: Three broad categories of telephone service: Local Exchange Service; Interexchange (long distance and local toll service); and CMRS.
User: A person or entity using a telecommunications network or service.
Written; In Writing: Both "written" and "in-writing" describe materials intended to be read, either in hardcopy document form (including fax) or transmitted through electronic media. For purposes of these rules, whenever anything is required to be provided "in writing" or in "written" form (e.g., a disclosure, a notice, or a confirmation), the requirement may be satisfied through the use of electronic media if both parties to the communication have agreed to do so. If they have not, a tangible, hardcopy document is required. Carriers' electronic communications with customers and agreements to use electronic communications must satisfy the requirements of the federal Electronic Signatures Act, 15 USCA §§ 7001 et seq. and/or the California Uniform Electronic Transactions Act, Cal. Civil Code §§ 1633 et seq., as applicable.
