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90_SB1567eng
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 Engrossed 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8 (Section scheduled to be repealed on July 1, 2001)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 and 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 of a telecommunications carrier may not
21 be switched to another telecommunications carrier without the
22 subscriber's authorization.
23 (c) A telecommunications carrier shall not effectuate a
24 change to a subscriber's telecommunications services by
25 providing an additional telecommunications service that
26 results in an additional monthly charge to the subscriber
27 (herein referred to as an "additional telecommunications
28 service") without following the subscriber notification
29 procedures set forth in this Section. An "additional
30 telecommunications service" does not include making available
31 any additional telecommunications services on a subscriber's
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1 line when the subscriber activates and pays for the services
2 on a per use basis.
3 (d) It is the responsibility of the company or carrier
4 requesting a change in a subscriber's telecommunications
5 carrier to obtain the subscriber's authorization for the
6 change whenever the company or carrier acts as a subscriber's
7 agent with respect to the change.
8 (e) A company or carrier requesting a change in a
9 subscriber's telecommunications carrier as described in
10 subsection (d) shall be solely responsible for providing
11 written notice of the change to the subscriber in accordance
12 with this Section, or for obtaining verification of the
13 subscriber's assent to the change in accordance with this
14 Section. In addition, a telecommunications carrier that
15 provides any additional telecommunications service to a
16 subscriber shall be solely responsible for providing written
17 notice of the additional telecommunications service to the
18 subscriber in accordance with this Section, or for obtaining
19 verification of the subscriber's assent to the additional
20 telecommunications service in accordance with this Section.
21 (1) If the company or carrier elects to provide
22 written notice in accordance with this Section, the
23 notice shall be provided as follows:
24 (A) A letter to the subscriber must be mailed
25 using first class mail, postage prepaid, no later
26 than 6 days after the carrier requesting a change in
27 the subscriber's telecommunications carrier is on
28 notice that the change has occurred or no later than
29 6 days after the installation of an additional
30 telecommunications service has occurred.
31 (B) The letter must be a separate document
32 sent for the sole purpose of describing the changes
33 or additions authorized by the subscriber.
34 (C) The letter must be printed with 10 point
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1 or larger type and contain clear and plain language
2 that confirms the details of a change in carrier or
3 the additional telecommunications service and
4 provides the subscriber with a toll free number to
5 call should the subscriber wish to delete services
6 or make additional changes.
7 (2) If the company or carrier elects to obtain
8 verification in accordance with this Section,
9 verification shall be obtained as follows:
10 (A) Verification shall be obtained by an
11 independent third-party that:
12 (i) operates from a facility physically
13 separate from that of the telecommunications
14 carrier or company seeking the change or
15 addition of service;
16 (ii) is not directly or indirectly
17 managed, controlled, directed, or owned wholly
18 or in part by the telecommunications carrier or
19 company seeking the change or addition of
20 service;
21 (iii) does not derive commissions or
22 compensation based upon the number of sales,
23 changes, or additions confirmed; and
24 (iv) shall retain records of the
25 confirmation of sales or changes for 24 months.
26 (B) The third-party verification agent shall
27 state to the consumer, and obtain the consumer's
28 assent to, the following disclosures:
29 (i) the consumer's name, address, and the
30 numbers of all telephone lines that will be
31 changed or to which services will be added;
32 (ii) the names of the telecommunications
33 carrier or company that is replacing a previous
34 carrier or adding to the consumer's account
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1 and, where applicable, the name of the carriers
2 being replaced;
3 (iii) the fact that the consumer can
4 designate only one telecommunications carrier
5 to handle the consumer's local, long distance,
6 or local toll service where a change of local,
7 long distance, or local toll service is being
8 verified; and
9 (iv) the fact that a fee may be imposed
10 for the change of carriers or that a monthly
11 recurring fee may be charged for the additional
12 service, if that is the case.
13 (C) The third-party verification agent shall
14 obtain verification no later than 3 days after the
15 carrier requesting a change in the subscriber's
16 telecommunications carrier is on notice that the
17 change has occurred or no later than 3 days after
18 installation of an additional telecommunications
19 service has occurred.
20 (D) The telephone call from the verification
21 agent shall be a separate and distinct telephone
22 call placed to the consumer. The telecommunications
23 carrier or company seeking to implement the change
24 in service or additional service shall not connect
25 the consumer to the verification agent, nor shall
26 the telecommunications carrier or company take any
27 part in the verification call.
28 (3) The verification or notice requirements
29 described in this subsection shall apply to all sales,
30 changes, additions, or authorizations obtained by
31 telemarketing.
32 (4) Verifications conducted or obtained in a manner
33 not in compliance with this Section or notice given in a
34 manner not in compliance with this Section shall be void
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1 and without effect.
2 (f) The Commission shall promulgate any rules necessary
3 to ensure that a subscriber of a telecommunications carrier
4 is not switched to another telecommunications carrier or that
5 an additional telecommunications service is not added without
6 the subscriber's authorization. The rules promulgated under
7 this Section shall comport with the rules, if any,
8 promulgated by the Attorney General pursuant to the Consumer
9 Fraud and Deceptive Business Practices Act.
10 (g) Complaints may be filed with the Commission under
11 this Section by a subscriber who has been switched to another
12 telecommunications carrier without authorization or has been
13 provided an additional telecommunications service not ordered
14 by the subscriber, by a telecommunications carrier that has
15 been removed as a subscriber's telecommunications carrier
16 without authorization, or by the Commission on its own
17 motion. Upon filing of the complaint, the parties may
18 mutually agree to submit the complaint to the Commission's
19 established mediation process. Remedies agreed to during the
20 mediation process may include, but shall not be limited to,
21 remedies set forth below in paragraphs (1) through (5). The
22 Commission may in its discretion deny the availability of the
23 mediation process to parties, who in its judgment, may have
24 engaged in a pattern of conduct inconsistent with this
25 Section. If no agreement is reached to submit the complaint
26 or if no agreement is reached during the mediation process,
27 hearings shall be held pursuant to Article 10 of this Act.
28 If after notice and hearing, the Commission finds that a
29 telecommunications carrier has violated this Section or a
30 rule promulgated under this Section, the Commission may in
31 its discretion order any one or more of the following:
32 (1) In case of an unauthorized switch to a
33 telecommunications carrier, require the violating
34 telecommunications carrier to refund to the subscriber
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1 all fees and charges collected from the subscriber for
2 services up to the time the subscriber receives written
3 notice of the fact that the violating carrier is
4 providing telecommunications service to the subscriber.
5 Notice consistent with paragraph (1) of subsection (e)
6 shall be deemed to satisfy the notice requirement of this
7 paragraph.
8 (2) In case of an unauthorized switch to a
9 telecommunications carrier, require the violating
10 telecommunications carrier to refund to the subscriber
11 charges collected in excess of those that would have been
12 charged by the subscriber's chosen telecommunications
13 carrier.
14 (3) In case of an unauthorized switch to a
15 telecommunications carrier, require the violating
16 telecommunications carrier to pay to the subscriber's
17 chosen telecommunications carrier the amount the chosen
18 telecommunications carrier would have collected for the
19 telecommunications service.
20 (4) Require the violating telecommunications
21 carrier to pay a fine of up to $1,000 into the Public
22 Utility Fund for each repeated and intentional violation
23 of this Section.
24 (5) In the case of an unauthorized additional
25 telecommunications service, require the violating carrier
26 to refund all charges for telecommunications products and
27 services provided without a subscriber's authorization.
28 (6) Issue a cease and desist order.
29 (7) For a pattern of violation of this Section,
30 revoke the violating telecommunications carrier's
31 certificate of service authority. The Commission may
32 adopt rules prescribing procedures for the verification
33 of a change in a subscriber's selection of a
34 telecommunications carrier for the provision of
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1 telecommunications service, whether local exchange or
2 interexchange. The rules shall be compatible with the
3 verification procedures established by the Federal
4 Communications Commission under the Communications Act of
5 1996.
6 (Source: P.A. 89-497, eff. 6-27-96.)
7 Section 10. The Consumer Fraud and Deceptive Business
8 Practices Act is amended by adding Section 2II as follows:
9 (815 ILCS 505/2II new)
10 Sec. 2II. Prohibition of sweepstakes boxes and
11 conditions upon use of prize promotions to solicit authority
12 to provide telecommunications or related service.
13 (a) As used in this Section, the following terms have
14 the meaning set forth herein:
15 (1) "Telecommunications carrier" has the meaning
16 given in Section 13-202 of the Public Utilities Act,
17 except that "telecommunications carrier" does not include
18 a provider of commercial mobile radio services (as
19 defined by 47 U.S.C. 332(d)(1).
20 (2) "Telecommunications service" has the meaning
21 given in Section 13-203 of the Public Utilities Act.
22 (3) "Enhanced telecommunications service" means any
23 service or merchandise, other than interLATA, intraLATA,
24 or local exchange service for which any charge or
25 assessment appears on a billing statement directed to a
26 consumer by a telecommunications carrier.
27 (4) "Sweepstakes box" means the box or receptacle
28 into which consumers place entry forms or documents used
29 to enter sweepstakes, contests, or drawings of any
30 description, and promotional materials attached thereto.
31 (b) It is an unfair or deceptive act or practice within
32 the meaning of Section 2 of this Act for any person to
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1 solicit authority to execute a change of telecommunications
2 carrier or to solicit authority to provide any
3 telecommunications service or enhanced telecommunications
4 service through the use of any sweepstakes box.
5 (c) Forms or documents used or intended to be used by
6 consumers to enter sweepstakes, contests, or drawings of any
7 description may not be used by any person as written
8 authority to execute a change of any person's
9 telecommunications carrier or to render any
10 telecommunications service or enhanced telecommunications
11 service.
12 (d) Any person who solicits any authority to execute a
13 change of any person's telecommunications carrier or to
14 render any telecommunications service or enhanced
15 telecommunications service through or in conjunction with any
16 sweepstakes, contest, or drawing shall clearly,
17 conspicuously, and fully disclose in all direct mail
18 solicitations to consumers the fact that the sweepstakes,
19 contest, or drawing is intended to solicit authority to
20 execute a change of telecommunications carrier or render
21 telecommunications service or enhanced telecommunications
22 service. The disclosure shall include, at the least, the
23 following information:
24 (1) that no purchase or change of
25 telecommunications carrier or service is required to
26 enter the sweepstakes, contest, or drawing;
27 (2) the alternative means by which a person may
28 enter the sweepstakes, contest, or drawing without
29 authorizing a change of telecommunications carrier or
30 service or making a purchase;
31 (3) the name and telephone number of the entity
32 soliciting consumers to make a purchase or to authorize a
33 change of telecommunications carrier or service through
34 the use of or in conjunction with the sweepstakes,
SB1567 Engrossed -9- LRB9010645JSmg
1 contest, or drawing; and
2 (4) a brief description of the nature of the
3 telecommunications services or enhanced
4 telecommunications services for which authorization is
5 sought through the use of or in conjunction with the
6 sweepstakes, contest, or drawing.
7 (e) It is an unfair or deceptive act or practice within
8 the meaning of Section 2 of this Act for any person to use a
9 form or document used or intended to be used by consumers to
10 enter sweepstakes, contests, or drawings of any description
11 as written authority to execute a change of any person's
12 telecommunications carrier or to render any
13 telecommunications service or enhanced telecommunications
14 service or for any person to solicit authority to execute a
15 change of telecommunications carrier or to solicit authority
16 to provide any telecommunications service or enhanced
17 telecommunications service through or in conjunction with any
18 sweepstakes, contest, or drawing in a manner not in
19 compliance with this Section. Nothing in this Section shall
20 be construed to prohibit any person from offering a premium,
21 incentive, or thing of value to another as consideration for
22 authorizing a change of telecommunications carrier or the
23 rendition of any telecommunications service or enhanced
24 telecommunications service, provided that no element of
25 chance or skill is associated with the offer of the premium,
26 incentive, or thing of value or the receipt thereof.
27 Section 99. Effective date. This Act takes effect upon
28 becoming law.