NOTICES
Tentative Order
[31 Pa.B. 6875] Public Meeting held
November 30, 2001Commissioners Present: Glen R. Thomas, Chairperson; Robert K. Bloom, Vice Chairperson; Aaron Wilson, Jr.; Terrance J. Fitzpatrick
Interim Guidelines Establishing Customer Information for Jurisdictional Telecommunications Companies; Doc. No. M-00011582F0002
Tentative Order By the Commission:
The Commission first promulgated Chapter 64, ''Standards and Billing Practices for Residential Telephone Service,'' 52 Pa. Code §§ 64.1--64.213, on November 30, 19841 and has amended it several times. Since 1984, there has been a marked increase in the number of competitors in the Pennsylvania telecommunications market, and in the number and variety of the telecommunications service packages being offered. As a result, the consumer's telephone bill has become more complex and in many instances, more confusing, making consumers vulnerable to slamming2 and cramming3 by unscrupulous service providers. Accordingly, the Commission proposes to revise Chapter 64 for the following purposes:
1. To provide residential and small business customers with information in disclosure statements, bills, notices and marketing materials in order to assist customers in making educated choices about local telecommunications service.
2. To provide customers with disclosure statements that convey, in clear and concise plain language, the terms and conditions of their local telecommunications services.
3. To provide customers with bills for local telecommunication services in a clear, concise and understandable format.
4. To reduce slamming and other telecommunications fraud by setting standards for customer information materials.
By this Tentative Order, the Commission proposes to adopt interim guidelines that are consistent with the Truth in Billing Principles recently adopted by the Federal Communications Commission. These Interim Guidelines will remain in place until a final rulemaking on this subject matter has been completed.
Discussion
On May 11, 1999, the Federal Communications Commission (FCC) released its First Report and Order and Further Notice of Proposed Rulemaking on Truth-In-Billing and Billing Format.4 In this order, the FCC adopted the Truth-in-Billing Principles that are to insure that customers receive thorough, accurate and understandable bills from their telecommunications carrier.
The FCC's Truth-in-Billing Principles and guidelines have three core principles that must be followed by service providers. First, telephone bills must be clearly organized and must highlight new service provider information.5 Second, bills should contain full and non-misleading descriptions of the service charges contained therein.6 Third, bills should contain clear and conspicuous disclosure of any information the consumer may need to make inquiries about, or to contest charges on the bill.7 These are broad binding principles that, according to the FCC, offer a flexible approach, but are meant to be ''obligations to provide customers with accurate and meaningful information contemplated by these principles'' and are to be ''enforceable to the same degree as other rules.''8 In adopting these principles and guidelines, the FCC expressed its intent to work together with the states towards the common objective of Truth-In-Billing.9 In fact, the FCC stated that it looked on its Order adopting the Truth in Billing Principles as another phase of its ''partnership with the states to promote competition and combat telecommunications-related fraud.'' To those ends, the FCC expressly stated that, ''[n]otwithstanding the requirement of our 1998 Slamming Order and Further Notice, the states must accept the same verification procedures as prescribed by the [FCC], states will be free to continue to enact and enforce additional regulation consistent with the general guidelines and principles set forth in this Order, including rules that are more specific than the general [Truth-in-Billing] guidelines . . . .''10
The FCC's establishment of the Truth-In-Billing Principles provides the opportunity to revise the Commission's corresponding provisions in Chapter 64 to make them consistent with these principles and to update them to reflect changes in the telecommunications market.
Accordingly, we have drafted for public comment proposed interim guidelines that address the provision of customer information relating to service identification, service charges, bill format, and notices of change of service or service provider. Because these proposed guidelines are intended to eventually replace Section 64.14 in part, they include much the same subject matter as that regulation.
We especially seek comments on the terms and definitions proposed for use in the proposed interim guidelines. Note that different terms for concepts than are currently used in Chapter 64 are proposed. For example, the proposed interim guidelines define and use the term ''local service provider'' instead of ''local exchange company'' or ''LEC,'' the terms used in Chapter 64.
Also, the Commission previously has established a regulatory definition of ''small business customer'' for electric and natural gas service. However, the Commission has not yet incorporated in its regulations a definition of ''small business customer'' for telecommunication service. See 52 Pa. Code §§ 54.2 and 54.152 (electric generation service) and §§ 62.32 and 62.72 (natural gas service). To correct this omission, a definition for ''small business customer'' for the purpose of the provision of telecommunications services is proposed herein and is defined as ''a customer with three or fewer access lines not used for residential service.''
These changes are proposed to reflect the reality of the current competitive market, and it is the Commission's intention to replace current Chapter 64 definitions with these updated terms. Again, comments are especially requested on these proposed changes.
Conclusion
We are hereby proposing by this Tentative Order Interim Guidelines to be in effect pending the promulgation of final regulations at a separate docket. These guidelines, when finalized after receipt of public comment, are intended to provide guidance to local service providers and underlying carriers in regard to the provision to customers of accurate and understandable information in disclosure statements, bills, customer notices and marketing materials.
To accommodate public comment on these tentative interim guidelines, we will direct that this order be published in the Pennsylvania Bulletin and will establish a ten-day comment period from the date of publication. We urge that all interested persons file comments as soon as possible. Note that reply comments will not be permitted. Accordingly, comments should address all relevant issues including the identification of the additional costs, if any, that are anticipated to be incurred by the industry to comply with these interim guidelines. Additional costs are those that are in excess of the current costs to comply with similar existing State and Federal requirements; Therefore,
It Is Ordered That:
1. The Interim Guidelines following this Tentative Order are hereby proposed to provide customers with accurate and understandable information in disclosure statements, bills, notices and marketing materials. These guidelines, once finalized, are intended to remain in place pending the conclusion of a formal rulemaking to promulgate mandatory regulations.
2. This Tentative Order, including Annex A, be published in the Pennsylvania Bulletin and that a comment period ending 10 days after the Tentative Order's published date is hereby established.
3. Written comments, an original and 15 copies, shall be submitted to the Secretary, Pennsylvania Public Utility Commission, P. O. Box 3265, Harrisburg, PA 17105-3265. A copy of these comments should be submitted at that same address to the technical and legal contact persons listed below, and to Sherri DelBiondo, Regulatory Coordinator. No reply comments will be permitted. A diskette containing the comments in electronic format must also be submitted. Comments should specifically reference the docket number of this Tentative Order.
4. A copy of this order and any accompanying statements of the Commissioners be served upon all jurisdictional local exchange carriers, the Pennsylvania Telephone Association, the Pennsylvania Cable and Telecommunication Association, the Office of Consumer Advocate, the Office of Small Business Advocate, and the Office of Trial Staff, posted on the Commission's website at http://puc.paonline.com and shall be made available to all other interested parties.
5. The contact persons for this matter are Wayne Williams, Consumer Services, (717) 787-7137 and Patricia Krise Burket, Law Bureau, (717) 787-3464.
6. A final order shall be issued subsequent to the receipt and evaluation of any comments filed in accordance with this Tentative Order.
JAMES J. MCNULTY,
Secretary
Annex A
Customer Information I. Statement of Purpose, Application and Effect.
A. Purpose. The purpose of these guidelines is as follows:
(1) To provide residential and small business customers with information in disclosure statements, bills, notices and marketing materials in order to assist customers in making educated choices about local telecommunications service.
(2) To provide customers with disclosure statements that convey in clear and concise plain language, the terms and conditions of their local telecommunications services.
(3) To provide customers with bills for local telecommunication services in a clear, concise and understandable format.
(4) To reduce slamming and other telecommunications fraud by setting standards for customer information materials.
B. Application. These guidelines apply to residential and small business customers.
C. Effect of guidelines. The requirements contained in these guidelines are intended to be consistent with and to augment the Truth-in-Billing Requirements adopted by the FCC in 47 CFR 64.2400--64.2401 and 52 Pa. Code § 64.191 (relating to Public Information).
II. Definitions.
The following words and terms, when used in these guidelines, as well as companion guidelines concerning quality of service, abandonment of service and changing local service providers, have the following meanings, unless the context clearly indicates otherwise:
Basic service charges--These charges include the customer's local calling plan, dial tone line, touch-tone, directory assistance, Federal line cost charge, PA Relay Surcharge, Federal Universal Service Fund, local number portability and 9-1-1 emergency service.
Billed account--An account assigned a unique identification number by the billing agent or local service provider for tracking purposes.
Billing agent--An entity that bills customers for products or services offered by regulated service providers.
Federal Communications Commission or FCC--United States government agency that regulates interstate telecommunications services.
Local service--Calling capacity between points within the community in which a customer lives. Local service includes the customer's local calling plan, dial tone line, touch-tone, directory assistance, Federal line cost charge, PA Relay Surcharge, Federal Universal Service Fund, local number portability, and 9-1-1 emergency service.
Local service provider--A company, such as a local exchange carrier, that provides local service and may also provide other telecommunications services.
Optional service--A service that customers can choose that may or may not be part of their bundled package. These can be billed either by a flat monthly rate or per call. Basic service cannot be suspended if the customer does not pay the charges for optional service(s).
Service provider--An entity, other than the billing agent, that offers a product or service to a customer, the charge for which appears on the bill of the billing agent.
Small business customer--A customer with three or fewer access lines not used for residential service.
Telephone bill--The invoice for telecommunications products or services rendered whether rendered by the local service provider or its billing agent.
III. Customer Bills, Format and Organization.
A. Bill frequency. The local service provider has the responsibility to render a monthly bill to customers.
B. Billing information. In addition to the requirements established in Section 64.14(a)--(d) and Plain Language Guidelines at Section 69.251, a bill should comply with the following:
(1) The customer's name, address and telephone number should appear on the first page of the bill.
(2) The outstanding balance for each billed account as of the beginning of the current billing cycle, should be designated using a term such as ''past due amount.''
(3) A toll-free telephone number, mailing address and, if available, a web site address for each service provider should be listed. The bill should contain a specific message to encourage customers to contact a service provider with questions or complaints about the bill prior to the due date of the bill.
(4) Charges that must be paid to retain basic service should be clearly identified and immediately thereafter, a statement ''that failure to pay these charges will result in the loss of basic service'' should be present.
(5) All line items that reflect an addition of a service, a change in rates or a change in rate plans should be clearly identified as either ''new,'' ''rate increase,'' ''rate decrease,'' or ''change in rate plan'' as applicable.
(6) A statement about the availability of the programs for low-income customers and customers with disabilities should be included. The bill should also include a telephone number for the customer to contact the company regarding these programs.
(7) The definition section of the bill should be distinctly separate. Definitions are to be brief, clear, non-misleading and in plain language. The definitions should include billed items on the bill that are not commonly understood such as abbreviations, symbols or acronyms. Use standardized terms on bills whenever possible when referring to charges relating to regulatory requirements. Definitions of the following charges and terms should be on a customer's monthly bill:
(a) Federal Line Cost Charge
(b) Federal Tax
(c) Federal Universal Service Fund Surcharge
(d) Interstate Access Surcharge
(e) Basic Service
(f) Number Portability Surcharge
(g) PA Relay Surcharge
(h) Pre-subscribed Interexchange Carrier Charge
(i) Public Safety Emergency Telephone 911
(j) State Tax
(8) Where the basic service package has a call allowance, the number of calls should be located next to the plan name.
C. Foreign language requirements. Where a company has a significant number of Spanish speaking persons in its service territory, the local service provider should inform Spanish speaking applicants and customers how they can obtain their bills in Spanish. A sentence in English and Spanish indicating that the information is available in Spanish upon request satisfies this requirement. Local service providers whose service territories include other non-English speaking persons should consider providing information in their native languages.
D. Bill organization. Telephone bills should be clearly organized by type of service and should comply with the following:
(1) Charges should be grouped by service provider. The name of each service provider should be clearly identified with its associated charges on the telephone bill. If the service provider has more than one name, the name appearing on the bill should be the name used to market the service. Where charges from two or more service providers appear on the same telephone bill, the charges and totals for each provider should be stated separately.
(2) Charges for local basic service should be listed separately and appear before other monthly charges. Required monthly fees or surcharges, including the 911-service fee, the Federal Communications Commission's subscriber-line charge and the number portability charges should be included in the amount for basic service.
(3) The telephone bill should clearly show the amount to be paid to avoid suspension of basic service. This amount should appear on the front page of the bill where the amount to be paid is shown.
(4) The telephone bill should clearly list per call charges. This listing should include charges for local, local toll and long distance charges with the rate shown in dollars or cents per minute.
(5) Monthly flat rate charges should be itemized monthly and appear separately from other charges.
(6) Per use charges should be listed separately by the type of service. Each type of service billed should show the number of times used, the per-use charge and the total amount charged.
(7) The telephone bill should clearly identify a new service provider that did not bill for service charges in the previous billing cycle. This requirement is not applicable to service providers that bill on a per transaction basis.
IV. Disclosure Statement of Terms and Conditions of Service.
The local service provider should provide a disclosure statement of the terms and conditions of service to new customers.
A. The disclosure statement should be:
(1) Provided in writing, using plain, non-technical language.
(2) Sent to a new customer free of charge by the end of the next business day after receiving the customer's order.
(3) Provided whenever there is a change in the terms of service.
(4) Provided upon request to customers at least annually, at no cost to the customer.
B. Each disclosure statement should contain the requirements under § 64.191(g) and the following information:
(1) Name, service address and telephone number of customer.
(2) Date of customer authorization and verification method.
(3) The length of the agreement, including:
(a) The effective date of service.
(b) The expiration date, if applicable.
(4) Activation fees or charges, including applicable construction charges to install a new service or transfer an existing service to a new location.
(5) Information regarding whether charges and fees are refundable and when they would be refunded.
(6) A change in the applicant's telephone number and related fee, if applicable.
(7) An explanation of sign-up bonuses, add-ons, limited time offers, other sales promotions and exclusions, if applicable.
(8) An explanation of penalties, fees and exceptions that may be imposed on the customer including charges for late payments and returned checks. Penalties, fees and exceptions should be printed in bold font that is the same size used for the majority of the text in the disclosure.
(9) A full explanation of the product or service as shown below to which the customer has subscribed:
(a) Basic Service.
(b) Optional monthly flat rate services ordered and the price per month for each service unless covered in a package. These services can include Call Forwarding, Call Waiting and Caller I.D.
(c) Optional services ordered and the price per use. These services can include Repeat Dialing, Speed Dialing and Three-Way Calling.
(d) Non-recurrent charges with a description and price. These can include inside wiring or jack repair charges, telephone number charge and voluntary toll restriction.
(e) Calling card charges. The customer should be directed to contact the local service provider for a description of the calling card rates.
(10) The local service provider's cancellation policy and fees for early cancellation, where applicable.
(11) The customer contact information that includes the name of the service provider, the provider's address, telephone number and, if available, the web site address.
(12) Information that clearly notifies the customer if the company bills for local basic services one month in advance.
(13) The statements required by section IV, D(1) of these guidelines relating to Customer Notices.
C. Prices. The agreed upon prices in the disclosure statement should reflect the marketed and billed prices.
(Note: The provisions of this section will supercede those of § 64.191(f)(1)--(4)).
D. Right of Cancellation.
Customers should be provided with information about the provisions of a 3-day right of rescission period following receipt of the disclosure statement from the billing entity. See section 7 of the Unfair Trade Practices and Consumer Protection Law (73 P. S. § 201-7). The following information should be included in the disclosure statement:
(1) The 3-day right of rescission is three business days.
(2) The 3-day right of rescission begins when the customer receives the disclosure statement from the billing entity.
(3) The customer may cancel by contacting the billing entity in writing, verbally or, if available, electronically.
E. Customer Notices About Changes in Terms.
(1) A local service provider should provide customers written notice at 30 and 60 days in advance of a material change in the terms and conditions of service. The local service provider should give the customer the option to decline a material change in the terms and conditions of service and cancel service without penalty due to the changes. This paragraph does not apply to changes that are beneficial to the customer such as a price decrease.
(2) The local service provider should include in the customer's disclosure statement the following statements:
(a) ''If we propose to change our terms of service in any type of agreement, we will send you two written notices in advance of the effective date of the change. We will send the first notice at or about 60 days before the effective date and the second notice at or about 30 days before the effective date of the change.''
(b) ''If you have a fixed term agreement, we will send you advance written notice at or about 60 days and at or about 30 days before the expiration date of the agreement.''
(c) ''We will provide the notices about changes as a bill message, a bill insert, or in a separate mailing. We will explain your options to you in these two advance notices.''
(3) A local service provider should provide customers written notification at least 30 days in advance of assigning the customer's contract to a different local service provider.
V. Marketing/Sales Activities.
Advertising, marketing and sales should not be fraudulent, misleading, deceptive, unlawful or anti-competitive as prohibited by federal and state law. Advertised prices should reflect prices in disclosure statements and billed by the local service providers.
VI. Review of Documents.
The local service provider should provide the Commission with disclosure statements, billing and other customer information resources for review as deemed necessary upon request.
[Pa.B. Doc. No. 01-2252. Filed for public inspection December 14, 2001, 9:00 a.m.] _______
1 15 Pa. B. 4354.
2 Slamming occurs when a company changes a customer's telecommunications carrier without that customer's knowledge or authorization.
3 Cramming is the practice of causing unauthorized, misleading or deceptive charges to be placed on the consumer's telephone bill.
4 Truth-In-Billing and Billing Format, First Report and Order and Further Notice of Proposed Rulemaking, CC Docket No. 98-170, 14 FCC Rcd 7492 (released May 11, 1999)(Truth-In-Billing Order).
5 Truth-In-Billing Order, ¶ 5.
6 Truth-In-Billing Order, ¶ 5.
7 Truth-In-Billing Order, ¶ 5.
8 Truth-In-Billing Order, ¶ 9.
9 Truth-In-Billing Order, ¶ 26.
10 Truth-In-Billing Order, ¶ 26
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