In Alabama, New Law Brings Worries About Consumer Complaints
Until a few weeks ago, Alabama customers could go to the Public Service Commission if they had a complaint about their phone bill or service, regardless of the technology involved or if it were bundled, and the PSC would look into it. But a law (http://bit.ly/PucWgY) signed Feb. 25 strips the commission of that ability. Now, when customers call the commission, the PSC will tell them to call the phone company.
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An aspect of the wave of telecomm deregulation measures passed around the country is what happens when consumers are fed up enough with their phone companies to call their state regulatory body. Most state commissions still have the authority to follow up on consumer complaints for basic landline service, said National Regulatory Research Institute Principal Sherry Lichtenberg. But as states have deregulated IP service, state commissions are increasingly able to respond only to complaints involving basic landlines, she said.
Alabama’s new law takes the state’s 2005 deregulation measure another step. The state at the time gave up jurisdiction over all but basic service and optional phone features, but left the PSC with authority to follow up on customer complaints regardless of technology. Under the new law, the PSC can act only on complaints involving basic service or optional features, according to a March 6 agency order to carry out the new law. Basic service and optional features “when part of a bundled retail offering, are eliminated from the Commission’s jurisdiction,” the order said.
AT&T argued in Alabama that regulatory oversight is unnecessary in a competitive market. “This legislation brings Alabama in line with the many other states that have made this move to recognize the truly competitive telecommunications environment both around the country and here in our state,” AT&T told us. Rather than being seen as a restriction on consumer response, legislation like the Alabama measure illustrates that “the way consumers are getting service and making complaints is changing,” said John Stephenson, American Legislative Exchange Council communications and technology task force director. Consumers today have more options for having their questions and concerns resolved by their provider, from Facebook and Twitter to online chats with customer service, he said.
The change raises fears that a stopgap for consumers is being lost. “The trend to remove this authority from the states leaves consumers with few avenues to voice these complaints,” said Lichtenberg. “They can go to their carriers (although generally consumers have done this before going to the state commission), the FCC, or the media, but this process often does not bring them the information or satisfaction they want or need.” AARP Alabama, which opposed the measure, did not return phone calls. The PSC was neutral during the debate, said a spokeswoman by email. “The Commission plans to continue handling consumer complaints in any manner deemed appropriate by the Alabama Legislature."
Minnesota may be the next state to take the deregulatory step. SF-584 (http://bit.ly/1gcPiLt) (CD March 7 p11) would restrict the ability of the Minnesota Public Utilities Commission to investigate customer complaints to basic landline service only. The bill would remove regulatory authority over everything but basic services defined as a single residential line.
In Wisconsin, one of the early states that deregulated in 2011, a Public Service Commission spokesman said that “when contacted we inform consumers that we cannot directly intervene in their issues, but that we will forward their complaint and concerns directly to the utility.” With “the lack of retail jurisdiction, the PSC ... no longer is in a position to directly advocate for consumers or to direct corrective actions by telecom companies,” he said. “However, the referrals we make may still be effective in getting utility management aware of consumer problems.”