PRINTER'S NO. 719
No. 650 Session of 2001
INTRODUCED BY PUNT, BOSCOLA, TOMLINSON, THOMPSON, O'PAKE,
HELFRICK, EARLL, LAVALLE, MOWERY, GERLACH, COSTA, TILGHMAN,
WAUGH, CORMAN, ROBBINS, MELLOW, SCHWARTZ AND STACK,
MARCH 20, 2001
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
MARCH 20, 2001
AN ACT
1 Restricting changes in telephone service under certain
2 circumstances; providing for the powers and duties of the
3 Pennsylvania Public Utility Commission and for enforcement by
4 the Attorney General.
5 TABLE OF CONTENTS
6 Section 1. Short title.
7 Section 2. Definitions.
8 Section 3. Scope.
9 Section 4. Restrictions on changing telephone service.
10 Section 5. Acceptable methods of changing providers.
11 Section 6. Liability of telecommunications company.
12 Section 7. Record retention.
13 Section 8. Notice of billing.
14 Section 9. Notice to provider.
15 Section 10. Violation by unaffiliated reseller.
16 Section 11. Enforcement by commission, regulations, customer
17 complaints and guidelines.
1 Section 12. Liability for unauthorized change of provider.
2 Section 13. Enforcement by Attorney General.
3 Section 14. Collateral estoppel.
4 Section 15. Statute of limitations.
5 Section 16. Amount in controversy.
6 Section 17. Effective date.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Short title.
10 This act shall be known and may be cited as the Telephone
11 Customer Protection Act.
12 Section 2. Definitions.
13 The following words and phrases when used in this act shall
14 have the meanings given to them in this section unless the
15 context clearly indicates otherwise:
16 "Commission." The Pennsylvania Public Utility Commission.
17 "Customer." A retail purchaser of telecommunications
18 service, whether local or long distance.
19 "Slamming." The unauthorized change of a customer's
20 telecommunications service provider, whether local or long-
21 distance service.
22 "Telecommunications service or telephone service provider."
23 A utility service involving the transmission of messages,
24 provided by a long-distance or local telephone company.
25 Section 3. Scope.
26 (a) General rule.--The provisions of this act against
27 slamming are limited to telephone service providers. Both local
28 and long distance telephone service providers are encompassed by
29 this act. Providers of electric or natural gas service are not
30 within the scope of this act.
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1 (b) Nature of remedy.--The remedy for slamming provided for
2 by this act is exclusively civil in nature. Hearings regarding
3 slamming may be conducted by telephone. The plaintiff may choose
4 the telephone option.
5 Section 4. Restrictions on changing telephone service.
6 No telecommunications service or telephone service provider
7 or other entity in the business of providing telephone service,
8 or any person, firm or corporation representing such an entity,
9 shall engage in the practice of slamming nor change or authorize
10 another to make a change in a customer's selection of telephone
11 service without the express permission of the customer.
12 Section 5. Acceptable methods of changing providers.
13 To ensure that a customer's telephone service is not changed
14 without permission, the commission shall promulgate and adopt
15 regulations consistent with this act. The acceptable methods of
16 switching telephone service shall consist of:
17 (1) Written customer authorization.
18 (2) Toll-free electronic authorization placed from the
19 telephone number which is the subject of the service change.
20 (3) Oral authorization obtained by an independent third
21 party. Such authorization may be taped using a medium
22 conducive to the recordation of speech. The party taping the
23 oral authorization may not record the customer unless the
24 customer consents to the customer's voice being taped and
25 states as follows:
26 I, (name) desire to change my local/long-
27 distance telephone service.
28 (4) An informational packet mailed to the customer which
29 contains a postage-prepaid postcard, without receiving a
30 cancellation of the customer's telephone service change
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1 within 14 days after the date of the mailing.
2 Section 6. Liability of telecommunications company.
3 A telecommunications service or telephone service provider
4 that initiates an unauthorized change in a customer's telephone
5 service shall be liable to the telecommunications service or
6 telephone-service provider previously selected by the customer
7 in an amount equal to all charges paid by the customer after the
8 unauthorized change. The telecommunications service or telephone
9 service provider shall be responsible for charges associated
10 with disputed charges in telephone service for which it cannot
11 produce proof that the change was at the request of the
12 customer.
13 Section 7. Record retention.
14 Each telecommunications service or telephone service provider
15 shall retain records relating to telephone service changes for
16 at least two years from the date of the change. Such records
17 shall be made available to the customer, the Attorney General of
18 the Commonwealth and the commission.
19 Section 8. Notice of billing.
20 When there is a change in a customer's telephone service
21 provider, as requested by the customer, written notice shall be
22 provided to the customer on the initial bill for telephone
23 service after the change has been made. Notice shall be in the
24 following format:
25 Notice
26 Your telephone service (specify local and/or long
27 distance) provider has been changed from (name of prior
28 provider) to (name of current provider).
29 Cost of change: $
30 You may request information regarding the date the change
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1 was authorized and the individual's name who authorized
2 the change.
3 Section 9. Notice to provider.
4 Where a customer's telephone service is changed without
5 permission and the customer notifies the telecommunications
6 provider within 90 days that the customer did not authorize the
7 change and does not wish to change providers, the customer shall
8 be switched back to the customer's original provider at the
9 expense of the provider which initiated the change.
10 Section 10. Violation by unaffiliated reseller.
11 No telecommunications service or telephone service provider
12 may be found in violation of this act solely on the basis that
13 the violation is committed by an unaffiliated reseller of that
14 provider's services or facilities.
15 Section 11. Enforcement by commission, regulations, customer
16 complaints and guidelines.
17 The commission shall enforce the provisions of this act and
18 shall adopt and promulgate regulations to carry out the
19 provisions of this act. The regulations shall include, but not
20 be limited to, procedures governing the resolution of customer
21 complaints concerning slamming.
22 Section 12. Liability for unauthorized change of provider.
23 Where investigation of a customer complaint establishes that
24 an unauthorized change in telephone service provider has
25 occurred, the customer shall not be liable for any bills
26 rendered as a result of the unauthorized change of provider. Any
27 moneys paid by the customer shall be refunded within 15 days of
28 the resolution of the complaint. The telecommunications service
29 provider making the unauthorized change shall switch the
30 customer back to the original provider at no cost or fee to the
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1 customer.
2 Section 13. Enforcement by Attorney General.
3 (a) General rule.--The commission may take such action as
4 may be necessary to collect any civil penalty it imposes under
5 this act and, on behalf of any customer, any damages awarded the
6 customer. Such action may include referral of the matter to the
7 Attorney General, who shall recover the amount of civil penalty
8 assessed or damages awarded by action in the appropriate court.
9 (b) Pattern of conduct.--Whenever the commission finds that
10 a telecommunications service or telephone service provider or
11 any person, firm or corporation representing a
12 telecommunications service provider or any entity in the
13 business of providing telephone service has engaged in a pattern
14 of conduct in violation of the provisions of this act or has
15 refused or failed to resolve a customer complaint in a time
16 frame established by the commission, the commission may refer
17 the matter to the Attorney General for resolution.
18 (c) Unfair trade violation.--A violation of this act shall
19 be deemed a violation of the act of December 17, 1968 (P.L.1224,
20 No.387), known as the Unfair Trade Practices and Consumer
21 Protection Law.
22 Section 14. Collateral estoppel.
23 A finding by the commission under this act that slamming has
24 occurred shall be collaterally estopped in other proceedings as
25 to the fact that slamming occurred. The commission may award
26 costs and expenses incurred and documented by the consumer. The
27 entity engaging in the slamming shall reimburse the consumer for
28 these documented costs and expenses. The commission may, in its
29 discretion, increase the amount of the award to an amount equal
30 to not more than three times actual damages.
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1 Section 15. Statute of limitations.
2 There shall be a two-year statute of limitations for actions
3 under this act. The cause of action shall accrue when the
4 consumer knew or should have known of the unauthorized switch in
5 provider.
6 Section 16. Amount in controversy.
7 In order for a cause of action to arise, the claim for
8 damages must be at least $50.
9 Section 17. Effective date.
10 This act shall take effect in 60 days.
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