Consumer Protection and Consumer Information Rules for CLCs 1.0 PURPOSE AND APPLICABILITY 1.1 PURPOSE The purpose of these Consumer Protection Regulations is to establish consumer protections/rules and responsibilities of current or potential customers who take service from CLCs registered to operate within the State of California as authorized by the California Public Utilities Commission. 1.2 APPLICABILITY These Consumer Protection Regulations apply to CLCs. The provisions here shall be observed subject to the jurisdiction of the California Public Utilities Commission, except if an exemption is made by the Commission, either on its own motion or after investigation of the facts and circumstances involved in a complaint. In case of emergency where public interest requires immediate action, the rules shall not prevent immediate corrective action by the CLC; that action, however, shall be subject to review by the Commission. 2.0 DEFINITION AND TERMS 2.1 APPLICANT (Customer) Any person, corporation or other entity that has applied for service. 2.2 COMMISSION Public Utilities Commission of the State of California. 2.3 INFORMAL COMPLAINT A statement or question by any person, whether a CLC customer or not, concerning a wrong, grievance, dissatisfaction, illegal action or procedure, dangerous condition or action, or failure of a CLC to meet its obligation. 2.4 FORMAL COMPLAINT A formal complaint filed with the CPUC must assert violation of tariff, rule, law or order, or comply with Section 1702 of the Public Utilities Code. 2.5 COMPLETED CALL OR TELEPHONIC COMMUNICATION A call, or other telephonic communication, originated by a person or mechanical/electrical device from a number to another number which is answered by a person or mechanical/electrical device. The numbers may be located any distance apart within California; and the communication may consist of voice, data, the combination of both, or other transmission via a wire or wireless medium; and may be for any duration of time. 2.6 CONSUMER AFFAIRS BRANCH (CAB) The Consumer Affairs Branch of the California Public Utilities Commission. 2.7 DATE OF PRESENTATION Postmark date on billing envelope. 2.8 AGENT A business representative, whose function is to bring about, modify, affect, accept performance of, or terminate contractual obligations between a CLC and applicants or customers. 2.9 MINOR RATE INCREASE Minor increases are those which are both less than 1% of the CLC's total California intrastate revenues and less than 5% of the affected service's rates. Increases shall be cumulative, such that if the sum of the proposed rate increase and rate increases that took effect during the preceding 12-month period for any service exceeds other parameter above, then the filing shall be treated as a major increase. 2.10 MAJOR RATE INCREASES Major increases are increases which are greater than the increases described in Section 2.9 of these rules. 3.0 RULES 3.1 RULE 1 - CLC INFORMATION CLCs shall, on request, provide each applicant for service or customer the following: A. The California Public Utilities Commission identification number of its registration to operate as a telecommunications corporation within California. B. The address and telephone number of the California Public Utilities Commission to verify its authority to operate. C. A copy of these Consumer Protection Regulations. D. A toll-free number to call for service or billing inquiries, along with an address where the customer may write the CLC. E. A full disclosure of all fictitious i.e., "dba" names. F. The names of billing agents it uses in place of performing the billing function itself. G. Rate information as required by Rule 3.6(a). 3.2 RULE 2 - INITIATION OF SERVICE Applicants for service must be given information on the Universal Lifeline program and its availability. Service may be initiated based on a written or oral agreement between the CLC and the customer. In either case, prior to the agreement, the customer shall be informed of all rates and charges for the services the customer desires and any other rates or charges which will appear on the customer's first bill. If the agreement is oral, within 10 days of initiating the service order, the CLC will provide a confirmation letter setting forth a brief description of the services ordered and itemizing all charges which will appear on the customer s bill. Within 10 days of initiating service, the CLC shall state in writing for all new customers all material terms and conditions that could affect what the customer pays for telecommunications services provided by the CLC. Potential customers who are denied service must be given the reason for the denial in writing. 3.3 RULE 3 - SPECIAL INFORMATION REQUIRED ON FORMS A. Customer Bills The CLC shall be identified on each bill. Each bill must prominently display a toll-free number for service or billing inquiries, along with an address where the customer may write. If the CLC uses a billing agent, the carrier must also include the name of the billing agent it uses. Each bill for telephone service will contain notations concerning the following areas: (1) When to pay your bill; (2) Billing detail including the period of service covered by the bill; (3) Late payment charge and when applied; (4) How to pay your bill; (5) Questions about your bill; (6) Network access for interstate calling; (7) In addition to the above, each bill shall include the following statement: "This bill is now due and payable; it becomes subject to a late payment charge if not paid within 15 calendar days of presentation date. Should you question this bill, please request an explanation from (name of CLC). If you believe you have been billed incorrectly you may file a complaint with the California Public Utilities Commission, Consumer Affairs Branch, 505 Van Ness Avenue, San Francisco, CA 94102, or 107 South Broadway, Room 5109, Los Angeles, CA 90012. To avoid having service disconnected, payment of the disputed bill should be made "under protest" to the CPUC or payment arrangements should be made agreeable to the CLC pending the outcome of the Commission's Consumer Affairs Branch review. The Consumer Affairs Branch shall review the basis of the billed amount, communicate the results of its review to the parties and inform you of your recourse to pursue the matter further with the Commission." B. Deposit Receipts Each deposit receipt shall contain the following provisions: "This deposit, less the amount of any unpaid bills for service furnished by (name of CLC), shall be refunded, together with any interest due, within 30 calendar days after the discontinuance of service. However, deposits may not receive interest subject to the conditions as provided in Rule No. 5." 3.4 RULE 4 - CREDIT ESTABLISHMENT Each applicant for service shall provide credit information satisfactory to the CLC or pay a deposit. Deposits may be avoided if the applicant: A. Provides credit history acceptable to the CLC. Credit information contained in the applicant's account record may include, but shall not be limited to, account established date, "can-be-reached" number, name of employer, employer's address, customer's driver s license number or other acceptable personal identification, billing name, and location of current and previous service. B. A cosigner or guarantor may be used providing the cosigner or guarantor has acceptable credit history with the serving CLC or another acceptable CLC. C. A CLC cannot refuse a deposit to establish credit for service. However, it may request the deposit to be in cash or other acceptable form of payment (e.g., cashier s check, money order, bond, letter of credit). 3.5 RULE 5 DEPOSITS In the event the customer fails to establish a satisfactory credit history, deposits are a form of security that may be required from customers to ensure payment of bills In the event a customer requests services in addition to basic service, the system average bill will reflect the aggregate services requested by the customer. Deposits will be refunded with interest upon discontinuance of service or after 12 months of service, whichever comes first. Interest will be added to the deposit using the 3-month commercial paper rate published by the Federal Reserve Board, except under the following conditions: no interest shall be given if the customer has received a minimum of two notices in a 12-month period as provided under Rule No. 6(B). CLCs shall maintain a bond of sufficient amount to cover customer deposits and other prepaid fees and other obligations to its customers. 3.6 RULE 6 - NOTICES Notices provided to the customer by the CLC shall be as follows: A. Rate Information (1) Rate information and information regarding the terms and conditions of service shall be provided upon request by a current or potential customer. Notice of minor increases to rates shall be provided in writing to the customer not less than 5 business days prior to any change. Notice of major increases in rates shall be provided in writing to customers within 30 days of the effective date of the change. No notice of temporary or permanent decreases shall be required. Customers shall be advised of optional rate plans in writing as they become available. In addition, customers shall be advised of changes to the terms and conditions of service which may result in rate increases to some or all customers or which result in reduced service or increased obligations for the CLC customers. (2) When a CLC provides information to a consumer which is in conflict with its tariffs, the consumer shall have the right to bring a formal complaint against the CLC. If the Commission determines that the complaint is part of a pattern of misinformation or was an attempt to defraud the customer, the Commission may impose appropriate sanctions upon the CLC. B. Discontinuance of Service Notice (1) Notice by customers Customers are responsible to notify the CLC of their desire to discontinue service on or before its effective date. Rules in Commission Decision 91188, regarding discontinuance of service related to criminal prosecution, will remain in effect for CLCs. (2) Notice by CLC Notices to discontinue service for nonpayment of bills shall be provided in writing by first class mail to the customer not less than 7 calendar days prior to termination. Each notice shall include all of the following information: 1. The name and address of the customer whose account is delinquent. 2. The amount that is delinquent. 3. The date when payment or arrangements for payment are required in order to avoid termination. 4. The procedure the customer may use to initiate a complaint or to request an investigation concerning service or charges. 5. The procedure the customer may use to request of the unpaid charges. 6. The telephone number of a representative of the CLC, who can provide additional information or institute arrangements for payment. 7. The telephone number of the Commission s Consumer Affairs Branch (CAB) where the customer may direct inquiries. 8. Service may not be discontinued for nonpayment of separately billed charges for other telephone companies or for nonpayment of Category III or other unregulated competitive services. C. Change in Ownership or Identity Notice CLCs shall notify their customers in writing of a change in ownership or identity of the customer's service provider on the customers next monthly billing cycle. D. Rules for CLC Notices Notices the CLC sends to customers, or the Commission, shall be a legible size and printed in a minimum point size type of 10. 3.7 RULE 7 - PRORATING OF BILLS Any prorated bill shall use a 30-day month to calculate the pro-rata amount. Prorating shall apply only to recurring charges. All nonrecurring and usage charges incurred during the billing period shall be billed in addition to prorated amounts. 3.8 RULE 8 - DISPUTED BILLS In case of a billing dispute between the customer and the CLC as to the correct amount of a bill, which cannot be adjusted with mutual satisfaction, the customer can make the following arrangement: A. First, the customer may make a request, and the CLC will comply with the request, for an investigation and review of the disputed amount. B. The undisputed portion of the bill must be paid by the Due By Date ((15) days after the date of presentation) shown on the bill or the service will be subject to disconnection if the CLC has notified the customer by written notice of such delinquency and impending termination. C. If there is still disagreement after the investigation and review by a manager of the CLC, the customer may appeal to CAB for its investigation and decision. To avoid disconnection of service, the customer must submit the claim and, if the bill has not be paid, deposit the amount in dispute with CAB within 7 calendar days after the date the CLC notifies the customer that the investigation and review are completed and that such deposit must be made or service will be interrupted. However, the service will not be disconnected prior to the Due By Date shown on the bill. D. The CLC may not disconnect the customer's service for nonpayment as long as the customer complies with (b) and (c) above. E. The CLC shall respond to CAB's requests for information within 10 business days. F. CAB will review the claim of the disputed amount, communicate the results of its review to the customer and CLC and make disbursement of the deposited amount. G. After the investigation and review are completed by the CLC as noted in (b) above, if the customer elects not to deposit the amount in dispute with CAB, such amount becomes due and payable at once. In order to avoid disconnection of service, such amount must be paid within 7 calendar days after the date the CLC notifies the customer that the investigation and review are completed and that such payment must be made or service will be interrupted. However, the service will not be disconnected prior to the Due By Date shown on the bill. 3.9 RULE 9 - BILLS PAST DUE Bills shall be considered past due if not paid by the "Due By Date" shown on the bill, which shall be no sooner than 15 calendar days after the date of presentation of the monthly bill. CLCs shall credit payments within 24 hours of receipt to avoid assessing late payment charges incorrectly. 3.10 RULE 10 - DISCONTINUANCE OF SERVICE A. Service may be discontinued for nonpayment of bills provided: 1. The bill has not been paid by the due date shown on the bill or if not shown, after 15 calendar days since presentation of the monthly bill. 2. Notice of the proposed discontinuance is provided pursuant to Rule 6(b). 3. Service is not initially discontinued on any Sunday, legal holiday, or any other day CLC service representatives are not available to serve customers. B. Fraud The CLC shall have the right to refuse or discontinue service without advance notice if the acts of the customer are such as to indicate intention to defraud the CLC. This includes fraudulently placing and receiving calls and/or providing false credit information. 3.11 RULE 11 - CHANGE OF SERVICE PROVIDER A. Solicitation of customer authorization for service termination and transfer. Solicitations by LECs, CLCs, or their agents, of customer authorization for termination of service with an existing carrier and the subsequent transfer to a new carrier must include current rate information on the new carrier and information regarding the terms and conditions of service with the new carrier. Solicitations by LECs, CLCs, or their agents, must conform with California Public Utilities Code Section 2889.5. All solicitations sent by LECs, CLCs or their agents to customers must be legible and printed in a minimum point size type of at least 10 points. A penalty or fine of $500 will apply for each violation of this Rule. B. Unauthorized service termination and transfer A LEC or CLC will be held liable for both the unauthorized termination of service with an existing carrier and the subsequent unauthorized transfer to their own service. LECs and CLCs are responsible for the actions of their agents that solicit unauthorized service termination and transfers. The malfeasant carrier shall restore the customer's service to the original carrier without charge to the customer. All billings during the unauthorized service period shall be refunded to the applicant or customer with treble damages. A penalty or fine of $500 payable to the Commission will apply to each violation of this Rule. As prescribed under PU Code Section 2108, each day of a continuing violation shall constitute a separate and distinct offense. 3.12 RULE 12 - FAILURE TO ESTABLISH CREDIT OR PAY DEPOSIT The CLC may refuse service if credit is not established satisfactory to the CLC and may deny or disconnect service if a deposit is not paid as required in Rule 5. 3.13 RULE 13 - LIABILITY OF CLC The CLC shall not be liable for any failure of performance due to causes beyond its control, including, without limitation to, acts of God, fires, floods or other catastrophes, national emergencies, insurrections, riots or wars, strikes, lockouts, work stoppage or other labor difficulties, and any law order, regulation or other action of any governing authority or agency thereof. 3.14 RULE 14 - PRIVACY CLCs are restricted from releasing nonpublic customer information in accordance with PU Code Sections 2891, 2891.1, and 2893. For each new customer, and on an annual basis for continuing customers, CLCs shall provide in writing a description of how the carrier handles the customer's private information and a disclosure of any ways that such information might be used or transferred that would not be obvious to the customer. LECs and CLCs are subject to the credit information and calling record privacy rules set forth in Appendix B of Decision Nos. 92860 and 93361, except as modified by Decision Nos. 83-06-066, 83-06-073, and 83-09-061. 3.15 RULE 15 - BLOCKING ACCESS TO 900 AND 976 INFORMATION SERVICES At the request of a customer and to the extent technically feasible, CLCs shall block that customer's access to 900 and 976 pay-per call telephone information services. CLCs shall inform their customers of the availability of this service at the time service is ordered. This blocking service shall be made available free of charge to residential customers, although CLCs may impose a charge if the customer asks for the deactivation of blocking. (END OF APPENDIX B)