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CONTACT: Kyle DeVine             December 9, 1996   CPUC - 563
         213-897-4225                             (I.96-04-024)

 CPUC ORDERS HEARTLINE AND TNT TO REFUND $600,000 TO CUSTOMERS
        FOR SLAMMING AND SUSPENDS SERVICE FOR 40 MONTHS

    The California Public Utilities Commission (CPUC) today
approved a settlement proposed by its Consumer Services Division
(CSD), Heartline Communications, Inc. (Heartline) and Total
National Telecommunications, Inc. (TNT) which settles the CPUC
investigation of allegations that Heartline and TNT switched
consumers to their long distance service without consumers'
consent - a practice known as slamming.
    Under the terms of the settlement, Heartline and TNT cannot
provide retail long distance service to customers in California
for 40 months.  The companies also must offer $600,000 in
refunds in the form of $20 checks to each of the 32,000
California customers who complained that their long distance
service was slammed by TNT or Heartline.  The agreement lays out
a claim process for customers who claim losses greater than $20.
    Customers that currently have TNT as their long distance
service provider will be notified in the next few months that
they will need to switch to another carrier.  Until they switch,
consumers will not be billed excessive rates by TNT because the
company has reduced its toll rates in California to levels
charged by AT&T.
    The CSD initial investigation indicated consumers had been
slammed as a result of signing a sweepstakes entry form.  CSD
alleged that some consumer signatures had been forged.  The
investigation also found that Hispanic neighborhoods were
targeted with false offers of discount long distance service
when Heartline and TNT charged significantly higher rates than
the major long distance carriers.

                             -more-

    After reviewing staff's initial investigation in April, the
Commission ordered Heartline and TNT to respond to slamming
allegations in formal hearings and prohibited them from
contacting local exchange companies directly to switch any more
customers to their service.  The Commission also prohibited
selling their customer subscriptions to other entities.
    The Commission approved the settlement because it is
reasonable in light of the whole record, consistent with the
law, and in the public interest.  It settles the investigation
without long and expensive litigation.  It also provides
immediate refunds to the 32,000 consumers who called Pacific
Bell, GTE of California, or the Commission to complain that
their service had been switched without their authorization.


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