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90_SB1567enr
220 ILCS 5/13-902
815 ILCS 505/2II new
Amends the Public Utilities Act. Establishes conditions
under which a change in telecommunications services provided
or a change in the provider of services may be made with
respect to a subscriber. Amends the Consumer Fraud and
Deceptive Business Practices Act to prohibit the use of
sweepstakes or contests to fraudulently induce a person to
change telecommunications services or providers. Effective
immediately.
LRB9010645JSmg
SB1567 Enrolled LRB9010645JSmg
1 AN ACT concerning subscription to telecommunications
2 services, amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Public Utilities Act is amended by
6 changing Section 13-902 as follows:
7 (220 ILCS 5/13-902)
8 (Section scheduled to be repealed on July 1, 2001)
9 Sec. 13-902. Rules for verification of a subscriber's
10 change in telecommunications carrier or addition to a
11 subscriber's service.
12 (a) As used in this Section, "subscriber" means a
13 telecommunications carrier's retail business customer served
14 by not more than 20 lines or a retail residential customer,
15 and "telecommunications carrier" has the meaning given in
16 Section 13-202 of the Public Utilities Act, except that
17 "telecommunications carrier" does not include a provider of
18 commercial mobile radio services (as defined by 47 U.S.C.
19 332(d)(1)).
20 (b) A subscriber's presubscription of a primary exchange
21 or interexchange telecommunications carrier may not be
22 switched to another telecommunications carrier without the
23 subscriber's authorization.
24 (c) A telecommunications carrier shall not effectuate a
25 change to a subscriber's telecommunications services by
26 providing an additional telecommunications service that
27 results in an additional monthly charge to the subscriber
28 (herein referred to as an "additional telecommunications
29 service") without following the subscriber notification
30 procedures set forth in this Section. An "additional
31 telecommunications service" does not include making available
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1 any additional telecommunications services on a subscriber's
2 line when the subscriber activates and pays for the services
3 on a per use basis.
4 (d) It is the responsibility of the company or carrier
5 requesting a change in a subscriber's telecommunications
6 carrier to obtain the subscriber's authorization for the
7 change whenever the company or carrier acts as a subscriber's
8 agent with respect to the change.
9 (e) A company or telecommunications carrier submitting a
10 change in a subscriber's primary exchange or interexchange
11 telecommunications carrier as described in subsection (d)
12 shall be solely responsible for providing written notice of
13 the change to the subscriber in accordance with this Section,
14 or for obtaining verification of the subscriber's assent to
15 the change in accordance with this Section. In addition, a
16 telecommunications carrier that provides any additional
17 telecommunications service to a subscriber shall be solely
18 responsible for providing written notice of the additional
19 telecommunications service to the subscriber in accordance
20 with this Section, or for obtaining verification of the
21 subscriber's assent to the additional telecommunications
22 service in accordance with this Section.
23 (1) If the company or telecommunications carrier
24 elects to provide written notice in accordance with this
25 Section, the notice shall be provided as follows:
26 (A) A letter to the subscriber must be mailed
27 using first class mail, postage prepaid, no later
28 than 10 days after the telecommunications carrier
29 submitting the change in the subscriber's primary
30 exchange or interexchange telecommunications carrier
31 is on notice that the change has occurred or no
32 later than 10 days after initiation of an additional
33 telecommunications service has occurred.
34 (B) The letter must be a separate document
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1 sent for the sole purpose of describing the changes
2 or additions authorized by the subscriber.
3 (C) The letter must be printed with 10 point
4 or larger type and contain clear and plain language
5 that confirms the details of a change in the
6 presubscribed telecommunications carrier or of the
7 addition of the telecommunications service and
8 provides the subscriber with a toll free number to
9 call should the subscriber wish to cancel the change
10 or make additional changes.
11 (2) If the company or telecommunications carrier
12 elects to obtain verification in accordance with this
13 Section, verification shall be obtained as follows:
14 (A) Verification shall be obtained by an
15 independent third-party that:
16 (i) operates from a facility physically
17 separate from that of the telecommunications
18 carrier or company seeking the change or
19 addition of service;
20 (ii) is not directly or indirectly
21 managed, controlled, directed, or owned wholly
22 or in part by the telecommunications carrier or
23 company seeking the change or addition of
24 telecommunications services;
25 (iii) does not derive commissions or
26 compensation based upon the number of sales,
27 changes, or additions confirmed; and
28 (iv) shall retain records of the
29 confirmation of sales or changes for 24 months.
30 (B) The third-party verification agent shall
31 state to the subscriber, and shall obtain the
32 subscriber's acknowledgement to, the following
33 disclosures:
34 (i) the consumer's name, address, and the
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1 telephone numbers of all telephone lines that
2 will be changed or to which additional
3 telecommunications services will be added;
4 (ii) the names of the telecommunications
5 carrier or company that is replacing the
6 previous presubscribed telecommunications
7 carrier or adding a telecommunications service
8 to the subscriber's account and, where
9 applicable, the name of the carriers being
10 replaced;
11 (iii) in cases where verification is
12 sought for the subscriber's presubscribed
13 telecommunications carrier, that for each line
14 the subscriber can designate only one
15 presubscribed telecommunications carrier to
16 handle each of the subscriber's local, long
17 distance, or local toll service depending upon
18 which presubscribed telecommunications service
19 or services are being verified; and
20 (iv) the fact that a fee may be imposed
21 on the subscriber for the change of primary
22 exchange or interexchange telecommunications
23 carriers or that a monthly recurring fee may be
24 charged for the additional service, if that is
25 the case.
26 (C) The third-party verification agent shall
27 obtain verification no later than 3 days after the
28 carrier submitting a change in the subscriber's
29 primary exchange or interexchange telecommunications
30 carrier is on notice that the change has occurred or
31 no later than 3 days after initiation of an
32 additional telecommunications service has occurred.
33 (D) The telecommunications company or carrier
34 seeking to implement the change in service or
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1 additional service may connect the subscriber to the
2 verification agent, provided that all of the
3 requirements for verification by a third party as
4 set forth in this Section are otherwise complied
5 with fully.
6 (3) The verification or notice requirements
7 described in this subsection shall apply to all changes
8 to a subscriber's presubscription of a primary exchange
9 or interexchange telecommunications carrier, whether the
10 change was initiated through an inbound call initiated by
11 the customer or outbound telemarketing. Where a
12 subscriber's telecommunications services are changed by
13 the provision of an additional telecommunications
14 service, the verification or notice requirements
15 described in this subsection shall apply if the change
16 was initiated through outbound telemarketing. Where a
17 subscriber's telecommunications services are changed by
18 the provision of an additional telecommunications service
19 and the change was initiated through inbound
20 telemarketing, the telecommunications carrier shall
21 comply with all rules or regulations promulgated by the
22 Federal Communications Commission.
23 (4) Verifications conducted or obtained in a manner
24 not in compliance with this Section or notice given in a
25 manner not in compliance with this Section shall be void
26 and without effect.
27 (f) The Commission shall promulgate any rules necessary
28 to ensure that the primary exchange or interexchange
29 telecommunications carrier of a subscriber is not changed to
30 another telecommunications carrier or that an additional
31 telecommunications service is not added without the
32 subscriber's authorization. The rules promulgated under this
33 Section shall comport with the rules, if any, promulgated by
34 the Attorney General pursuant to the Consumer Fraud and
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1 Deceptive Business Practices Act and with any rules
2 promulgated by the Federal Communications Commission.
3 (g) Complaints may be filed with the Commission under
4 this Section by a subscriber whose primary exchange or
5 interexchange carrier has been changed to another
6 telecommunications carrier without authorization or who has
7 been provided an additional telecommunications service not
8 ordered by the subscriber, by a telecommunications carrier
9 that has been removed as a subscriber's primary exchange or
10 interexchange telecommunications carrier without
11 authorization, or by the Commission on its own motion. Upon
12 filing of the complaint, the parties may mutually agree to
13 submit the complaint to the Commission's established
14 mediation process. Remedies in the mediation process may
15 include, but shall not be limited to, the remedies set forth
16 in paragraphs (1) through (5) of this subsection. In its
17 discretion, the Commission may deny the availability of the
18 mediation process and submit the complaint to hearings. If
19 the complaint is not submitted to mediation or if no
20 agreement is reached during the mediation process, hearings
21 shall be held on the complaint pursuant to Article 10 of this
22 Act. If after notice and hearing, the Commission finds that
23 a telecommunications carrier has violated this Section or a
24 rule promulgated under this Section, the Commission may in
25 its discretion order any one or more of the following:
26 (1) In case of an unauthorized change in a
27 subscriber's primary exchange or interexchange
28 telecommunications carrier, require the violating
29 telecommunications carrier to refund to the subscriber
30 all fees and charges collected from the subscriber for
31 services up to the time the subscriber receives written
32 notice of the fact that the violating carrier is
33 providing telecommunications service to the subscriber.
34 For a carrier that elects to provide written notice of a
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1 change in a subscriber's primary exchange or
2 interexchange carrier, notice consistent with
3 paragraph (1) of subsection (e) shall be deemed to be
4 receipt of notice by the subscriber for purposes of this
5 paragraph. For a carrier that elects to obtain
6 verification of a change in a subscriber's primary
7 exchange or interexchange carrier consistent with
8 paragraph (2) of subsection (e) of this Section, either
9 the first correspondence from the carrier that notifies
10 the customer of the change or the subscriber's first bill
11 for services, whichever is mailed first, shall be deemed
12 to be receipt of notice by the subscriber for purposes of
13 this paragraph. The Commission may order the remedial
14 action outlined in this subsection only to the extent
15 that the same remedial action is allowed pursuant to
16 rules or regulations promulgated by the Federal
17 Communications Commission.
18 (2) In case of an unauthorized change in the
19 primary exchange or interexchange telecommunications
20 carrier, require the violating telecommunications carrier
21 to refund to the subscriber charges collected in excess
22 of those that would have been charged by the subscriber's
23 chosen telecommunications carrier.
24 (3) In case of an unauthorized change in the
25 primary exchange or interexchange telecommunications
26 carrier, require the violating telecommunications carrier
27 to pay to the subscriber's chosen telecommunications
28 carrier the amount the chosen telecommunications carrier
29 would have collected for the telecommunications service.
30 The Commission is authorized to reduce this payment by
31 any amount already paid by the violating
32 telecommunications carrier to the subscriber's chosen
33 telecommunications carrier for those telecommunications
34 services.
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1 (4) Require the violating telecommunications
2 carrier to pay a fine of up to $1,000 into the Public
3 Utility Fund for each repeated and intentional violation
4 of this Section.
5 (5) In the case of an unauthorized additional
6 telecommunications service, require the violating carrier
7 to refund or cancel all charges for telecommunications
8 services or products provided without a subscriber's
9 authorization.
10 (6) Issue a cease and desist order.
11 (7) For a pattern of violation of this Section or
12 for intentionally violating a cease and desist order,
13 revoke the violating telecommunications carrier's
14 certificate of service authority. The Commission may
15 adopt rules prescribing procedures for the verification
16 of a change in a subscriber's selection of a
17 telecommunications carrier for the provision of
18 telecommunications service, whether local exchange or
19 interexchange. The rules shall be compatible with the
20 verification procedures established by the Federal
21 Communications Commission under the Communications Act of
22 1996.
23 (Source: P.A. 89-497, eff. 6-27-96.)
24 Section 10. The Consumer Fraud and Deceptive Business
25 Practices Act is amended by changing Section 2DD and adding
26 Section 2II as follows:
27 (815 ILCS 505/2DD)
28 Sec. 2DD. Telecommunication service provider selection.
29 A telecommunication carrier shall not submit or execute a
30 change in a subscriber's selection of a provider of local
31 exchange telecommunications service or interexchange
32 telecommunications service or provide any additional
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1 telecommunications service as defined in Section 13-902 of
2 the Public Utilities Act except in accordance with (i) the
3 verification procedures adopted by the Federal Communications
4 Commission under the Communications Act of 1996, including
5 subpart K of 47 CFR 64, as those procedures are from time to
6 time amended, and (ii) Section 13-902 of the Public
7 Utilities Act and any rules adopted by the Illinois Commerce
8 Commission under the authority of that Section 13-902 of the
9 Public Utilities Act, as those rules are from time to time
10 amended. A telecommunications carrier that violates this
11 Section commits an unlawful practice within the meaning of
12 this Act.
13 (Source: P.A. 89-497, eff. 6-27-96.)
14 (815 ILCS 505/2II new)
15 Sec. 2II. Prohibition of sweepstakes boxes and
16 conditions upon use of prize promotions to solicit authority
17 to provide telecommunications or related service.
18 (a) As used in this Section, the following terms have
19 the meaning set forth herein:
20 (1) "Telecommunications carrier" has the meaning
21 given in Section 13-202 of the Public Utilities Act,
22 except that "telecommunications carrier" does not include
23 a provider of commercial mobile radio services (as
24 defined by 47 U.S.C. 332(d)(1).
25 (2) "Telecommunications service" has the meaning
26 given in Section 13-203 of the Public Utilities Act.
27 (3) "Enhanced telecommunications service" means any
28 service or merchandise, other than interLATA, intraLATA,
29 or local exchange service for which any charge or
30 assessment appears on a billing statement directed to a
31 consumer by a telecommunications carrier.
32 (4) "Sweepstakes box" means the box or receptacle
33 into which consumers place entry forms or documents used
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1 to enter sweepstakes, contests, or drawings of any
2 description, and promotional materials attached thereto.
3 (b) It is an unfair or deceptive act or practice within
4 the meaning of Section 2 of this Act for any person to
5 solicit authority to execute a change of telecommunications
6 carrier or to solicit authority to provide any
7 telecommunications service or enhanced telecommunications
8 service through the use of any sweepstakes box.
9 (c) Forms or documents used or intended to be used by
10 consumers to enter sweepstakes, contests, or drawings of any
11 description may not be used by any person as written
12 authority to execute a change of any person's
13 telecommunications carrier or to render any
14 telecommunications service or enhanced telecommunications
15 service.
16 (d) Any person who solicits any authority to execute a
17 change of any person's telecommunications carrier or to
18 render any telecommunications service or enhanced
19 telecommunications service through or in conjunction with any
20 sweepstakes, contest, or drawing shall clearly,
21 conspicuously, and fully disclose in all direct mail
22 solicitations to consumers the fact that the sweepstakes,
23 contest, or drawing is intended to solicit authority to
24 execute a change of telecommunications carrier or render
25 telecommunications service or enhanced telecommunications
26 service. The disclosure shall include, at the least, the
27 following information:
28 (1) that no purchase or change of
29 telecommunications carrier or service is required to
30 enter the sweepstakes, contest, or drawing;
31 (2) the alternative means by which a person may
32 enter the sweepstakes, contest, or drawing without
33 authorizing a change of telecommunications carrier or
34 service or making a purchase;
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1 (3) the name and telephone number of the entity
2 soliciting consumers to make a purchase or to authorize a
3 change of telecommunications carrier or service through
4 the use of or in conjunction with the sweepstakes,
5 contest, or drawing; and
6 (4) a brief description of the nature of the
7 telecommunications services or enhanced
8 telecommunications services for which authorization is
9 sought through the use of or in conjunction with the
10 sweepstakes, contest, or drawing.
11 (e) It is an unfair or deceptive act or practice within
12 the meaning of Section 2 of this Act for any person to use a
13 form or document used or intended to be used by consumers to
14 enter sweepstakes, contests, or drawings of any description
15 as written authority to execute a change of any person's
16 telecommunications carrier or to render any
17 telecommunications service or enhanced telecommunications
18 service or for any person to solicit authority to execute a
19 change of telecommunications carrier or to solicit authority
20 to provide any telecommunications service or enhanced
21 telecommunications service through or in conjunction with any
22 sweepstakes, contest, or drawing in a manner not in
23 compliance with this Section. Nothing in this Section shall
24 be construed to prohibit any person from offering a premium,
25 incentive, or thing of value to another as consideration for
26 authorizing a change of telecommunications carrier or the
27 rendition of any telecommunications service or enhanced
28 telecommunications service, provided that no element of
29 chance or skill is associated with the offer of the premium,
30 incentive, or thing of value or the receipt thereof.
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.