CCC PPPPP U U CCC N N EEEEE W W W SSS C C P p U U C C NN N E W W W S S C P P U U C N N N E W W W S C PPPPP U U C N N N EEE W W W W SSS C P U U C N N N E WW WW S C C P U U C C N NN E W W S S COC P UUUU CCC N N EEEEE W W SSS California Public Utilities Commission 505 Van Ness Avenue, Room 5301 San Francisco, CA 94102 CONTACT: Armando Rendon July 17, 1996 CPUC-059 415-703-1366 (I96-02-043) CPUC CENSURES CTS FOR EMPLOYEE DEMONSTRATION The California Public Utilities Commission (CPUC) today censured Communications TeleSystems International (CTS) for letting its managers and employees disrupt a press conference called by consumer advocacy groups in San Diego last month. About 100 CTS employees picketed the hotel and then packed the room where the press conference was being held. CTS is under investigation by the CPUC for alleged slamming practices, that is, the unauthorized switching of a customer's long distance service provider. The advocacy groups, The Greenlining Institute and Latino Issues Forum, held the press conference on May 23 to publicize their involvement in the case and to seek witnesses, either consumers or former CTS employees. A week later, at a hearing already scheduled as part of the slamming investigation, the two groups asked the Commission to sanction CTS. CTS employees had demonstrated only a few days before at a local TV station, protesting its depiction of CTS' operations. Apparently, picket signs used at the protest were recycled for use at the press conference. At a June 7 hearing on the advocacy groups' request for censure, Roger Abbott, CTS' chief operating officer, apologized to the two organizations. However, while the Commission could not say that any potential witnesses had been intimidated, it did find that the potential for witness intimidation should have been apparent to CTS management, hence the censure. CTS provides long distance service within the state, but is also seeking to compete in the local telephone market. The Safety & Enforcement Division (S&E) of the CPUC protested the application. CTS also operates under the name WORLDxCHANGE. -more- During 1995, the CPUC Consumer Affairs Branch received more than 440 complaints primarily from the Los Angeles, San Francisco/Oakland, and San Diego areas from customers charging they had been slammed by CTS. Pacific Bell received more than 40,000 complaints from consumers claiming that they were slammed by CTS. An investigation by the S&E found that CTS appeared to be using misleading marketing tactics to sell its long distance service. Customers had been sold service under the representation that CTS rates are 30 percent lower than AT&T, Sprint, and MCI rates, when in fact the rates can be significantly higher. Customers also complained that they were switched to CTS without authorization and charged for calls they never made or received. S&E believes that CTS's marketing practices are targeting minority customers. If consumers believe they have been slammed by CTS or WORLDxCHANGE, they can call CPUC Investigator Stormy Maddux, Special Investigations Unit, 415-703-2854, or write her at the CPUC, 505 Van Ness Avenue, San Francisco, California 94102. All other complaints should be directed to the Commission's Consumer Affairs Branch at 1-800-649-7570. Phone customers can prevent unauthorized switching of long distance service by contacting their local telephone company and requesting that Primary Interexchange Carrier (PIC) protection be placed on their telephone line. Once PIC protection is obtained, a customer's telephone service cannot be switched without the customer's written request to the local telephone company. ###