Cal. PUC became first state commission in nation to adopt rules f...
Cal. PUC became first state commission in nation to adopt rules for allowing consumers to charge small purchases to their wireless or wireline phone bills. New PUC rules implement state law passed last year that took effect July 1.…
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Law amends anticramming statute to permit use of phone bills for non- communications-related charges under rules set by PUC. Permitted charges would be for items such as beverages, snacks, magazines. Some phone carriers in Europe and Japan already offer that type of billing through arrangements with merchants. Under Cal. rules, telephone customers must subscribe in advance to authorize noncommunications charges and can cancel their subscription at any time by giving notice to their phone carrier. Each nontelecom purchase must be verified by PIN number or other security device. Because phone companies in effect are offering credit, billing service must adhere to federal regulations on consumer credit disclosures of interest, fees, penalties, handling of disputed charges, other terms. Phone companies must screen vendors and billing agents for history of consumer fraud and must itemize nonphone charges on bills, indicating what each charge was for, who put it on bill and whom to contact with questions. PUC said basic phone services couldn’t be disconnected for failure to pay non-telecom-related charges. It said new technologies that allowed charging purchases to phone bills would be emerging soon in Cal., and agency sought to design rules that would provide effective protection against fraud and abuse without creating barriers to offering new service. PUC said it would review effects of new rules in 18 months.