WASHINGTON-The California Public Utilities Commission has embarked on a proceeding that could spark a national trend to protect telecom consumer rights in this new era of deregulation and competition.
The initiative, which responds to a flood of complaints against wireless carriers and other telecom service providers in recent years, comes at a time when the issue of whether state courts can assess monetary damages against wireless carriers for consumer fraud is squarely before those courts and the Federal Communications Commission.
The California PUC said it received 2,404 informal complaints in 1998 and 3,356 informal complaints in 1999 regarding 158 registered commercial wireless carriers in the state. One of four complaints was about early termination fees.
“Many of these problems stem from regulations carried over from a time when customers dealt with but a single carrier, and a patchwork of new consumer protection rules formulated to respond to the rapid evolution of new and competitive telecommunications services,” stated the California PUC earlier this year.
Comments supporting and opposing the state regulatory plan were filed this month by consumer advocates and wireless carriers.
The proposed telecom bill of rights, which grew out of a California PUC staff report, would include:
Disclosure-Consumers have the right to receive clear and complete terms and conditions for service agreements.
Choice-Consumers have a right to select vendors.
Privacy-Consumers have a right to personal privacy; to have protection from unauthorized use of their records.
Public participation-Consumers have a right to participate in public policy proceedings.
Oversight and enforcement-Consumers have a right to be informed of their rights and what agency enforces those rights.
Accurate bills and redress-Consumers have a right to understandable and accurate bills for services they authorize.
A 1993 law forbids states from regulating rates and entry of commercial wireless carriers. At the same time, states retained jurisdiction over terms and conditions of wireless service. It appears the California PUC wants to put teeth into that oversight.
The Wireless Consumers Alliance urged the California PUC to “replace tariffs with rules that protect consumers.”
The Cellular Carriers Association of California disagreed, saying there is no need to impose consumer protection rules on wireless carriers and warned that doing so would stifle innovation and competition.
