Public Act 90-0610 of the 90th General Assembly
Public Act 90-0610
SB1567 Enrolled LRB9010645JSmg
AN ACT concerning subscription to telecommunications
services, amending named Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Public Utilities Act is amended by
changing Section 13-902 as follows:
(220 ILCS 5/13-902)
(Section scheduled to be repealed on July 1, 2001)
Sec. 13-902. Rules for verification of a subscriber's
change in telecommunications carrier or addition to a
subscriber's service.
(a) As used in this Section, "subscriber" means a
telecommunications carrier's retail business customer served
by not more than 20 lines or a retail residential customer,
and "telecommunications carrier" has the meaning given in
Section 13-202 of the Public Utilities Act, except that
"telecommunications carrier" does not include a provider of
commercial mobile radio services (as defined by 47 U.S.C.
332(d)(1)).
(b) A subscriber's presubscription of a primary exchange
or interexchange telecommunications carrier may not be
switched to another telecommunications carrier without the
subscriber's authorization.
(c) A telecommunications carrier shall not effectuate a
change to a subscriber's telecommunications services by
providing an additional telecommunications service that
results in an additional monthly charge to the subscriber
(herein referred to as an "additional telecommunications
service") without following the subscriber notification
procedures set forth in this Section. An "additional
telecommunications service" does not include making available
any additional telecommunications services on a subscriber's
line when the subscriber activates and pays for the services
on a per use basis.
(d) It is the responsibility of the company or carrier
requesting a change in a subscriber's telecommunications
carrier to obtain the subscriber's authorization for the
change whenever the company or carrier acts as a subscriber's
agent with respect to the change.
(e) A company or telecommunications carrier submitting a
change in a subscriber's primary exchange or interexchange
telecommunications carrier as described in subsection (d)
shall be solely responsible for providing written notice of
the change to the subscriber in accordance with this Section,
or for obtaining verification of the subscriber's assent to
the change in accordance with this Section. In addition, a
telecommunications carrier that provides any additional
telecommunications service to a subscriber shall be solely
responsible for providing written notice of the additional
telecommunications service to the subscriber in accordance
with this Section, or for obtaining verification of the
subscriber's assent to the additional telecommunications
service in accordance with this Section.
(1) If the company or telecommunications carrier
elects to provide written notice in accordance with this
Section, the notice shall be provided as follows:
(A) A letter to the subscriber must be mailed
using first class mail, postage prepaid, no later
than 10 days after the telecommunications carrier
submitting the change in the subscriber's primary
exchange or interexchange telecommunications carrier
is on notice that the change has occurred or no
later than 10 days after initiation of an additional
telecommunications service has occurred.
(B) The letter must be a separate document
sent for the sole purpose of describing the changes
or additions authorized by the subscriber.
(C) The letter must be printed with 10 point
or larger type and contain clear and plain language
that confirms the details of a change in the
presubscribed telecommunications carrier or of the
addition of the telecommunications service and
provides the subscriber with a toll free number to
call should the subscriber wish to cancel the change
or make additional changes.
(2) If the company or telecommunications carrier
elects to obtain verification in accordance with this
Section, verification shall be obtained as follows:
(A) Verification shall be obtained by an
independent third-party that:
(i) operates from a facility physically
separate from that of the telecommunications
carrier or company seeking the change or
addition of service;
(ii) is not directly or indirectly
managed, controlled, directed, or owned wholly
or in part by the telecommunications carrier or
company seeking the change or addition of
telecommunications services;
(iii) does not derive commissions or
compensation based upon the number of sales,
changes, or additions confirmed; and
(iv) shall retain records of the
confirmation of sales or changes for 24 months.
(B) The third-party verification agent shall
state to the subscriber, and shall obtain the
subscriber's acknowledgement to, the following
disclosures:
(i) the consumer's name, address, and the
telephone numbers of all telephone lines that
will be changed or to which additional
telecommunications services will be added;
(ii) the names of the telecommunications
carrier or company that is replacing the
previous presubscribed telecommunications
carrier or adding a telecommunications service
to the subscriber's account and, where
applicable, the name of the carriers being
replaced;
(iii) in cases where verification is
sought for the subscriber's presubscribed
telecommunications carrier, that for each line
the subscriber can designate only one
presubscribed telecommunications carrier to
handle each of the subscriber's local, long
distance, or local toll service depending upon
which presubscribed telecommunications service
or services are being verified; and
(iv) the fact that a fee may be imposed
on the subscriber for the change of primary
exchange or interexchange telecommunications
carriers or that a monthly recurring fee may be
charged for the additional service, if that is
the case.
(C) The third-party verification agent shall
obtain verification no later than 3 days after the
carrier submitting a change in the subscriber's
primary exchange or interexchange telecommunications
carrier is on notice that the change has occurred or
no later than 3 days after initiation of an
additional telecommunications service has occurred.
(D) The telecommunications company or carrier
seeking to implement the change in service or
additional service may connect the subscriber to the
verification agent, provided that all of the
requirements for verification by a third party as
set forth in this Section are otherwise complied
with fully.
(3) The verification or notice requirements
described in this subsection shall apply to all changes
to a subscriber's presubscription of a primary exchange
or interexchange telecommunications carrier, whether the
change was initiated through an inbound call initiated by
the customer or outbound telemarketing. Where a
subscriber's telecommunications services are changed by
the provision of an additional telecommunications
service, the verification or notice requirements
described in this subsection shall apply if the change
was initiated through outbound telemarketing. Where a
subscriber's telecommunications services are changed by
the provision of an additional telecommunications service
and the change was initiated through inbound
telemarketing, the telecommunications carrier shall
comply with all rules or regulations promulgated by the
Federal Communications Commission.
(4) Verifications conducted or obtained in a manner
not in compliance with this Section or notice given in a
manner not in compliance with this Section shall be void
and without effect.
(f) The Commission shall promulgate any rules necessary
to ensure that the primary exchange or interexchange
telecommunications carrier of a subscriber is not changed to
another telecommunications carrier or that an additional
telecommunications service is not added without the
subscriber's authorization. The rules promulgated under this
Section shall comport with the rules, if any, promulgated by
the Attorney General pursuant to the Consumer Fraud and
Deceptive Business Practices Act and with any rules
promulgated by the Federal Communications Commission.
(g) Complaints may be filed with the Commission under
this Section by a subscriber whose primary exchange or
interexchange carrier has been changed to another
telecommunications carrier without authorization or who has
been provided an additional telecommunications service not
ordered by the subscriber, by a telecommunications carrier
that has been removed as a subscriber's primary exchange or
interexchange telecommunications carrier without
authorization, or by the Commission on its own motion. Upon
filing of the complaint, the parties may mutually agree to
submit the complaint to the Commission's established
mediation process. Remedies in the mediation process may
include, but shall not be limited to, the remedies set forth
in paragraphs (1) through (5) of this subsection. In its
discretion, the Commission may deny the availability of the
mediation process and submit the complaint to hearings. If
the complaint is not submitted to mediation or if no
agreement is reached during the mediation process, hearings
shall be held on the complaint pursuant to Article 10 of this
Act. If after notice and hearing, the Commission finds that
a telecommunications carrier has violated this Section or a
rule promulgated under this Section, the Commission may in
its discretion order any one or more of the following:
(1) In case of an unauthorized change in a
subscriber's primary exchange or interexchange
telecommunications carrier, require the violating
telecommunications carrier to refund to the subscriber
all fees and charges collected from the subscriber for
services up to the time the subscriber receives written
notice of the fact that the violating carrier is
providing telecommunications service to the subscriber.
For a carrier that elects to provide written notice of a
change in a subscriber's primary exchange or
interexchange carrier, notice consistent with
paragraph (1) of subsection (e) shall be deemed to be
receipt of notice by the subscriber for purposes of this
paragraph. For a carrier that elects to obtain
verification of a change in a subscriber's primary
exchange or interexchange carrier consistent with
paragraph (2) of subsection (e) of this Section, either
the first correspondence from the carrier that notifies
the customer of the change or the subscriber's first bill
for services, whichever is mailed first, shall be deemed
to be receipt of notice by the subscriber for purposes of
this paragraph. The Commission may order the remedial
action outlined in this subsection only to the extent
that the same remedial action is allowed pursuant to
rules or regulations promulgated by the Federal
Communications Commission.
(2) In case of an unauthorized change in the
primary exchange or interexchange telecommunications
carrier, require the violating telecommunications carrier
to refund to the subscriber charges collected in excess
of those that would have been charged by the subscriber's
chosen telecommunications carrier.
(3) In case of an unauthorized change in the
primary exchange or interexchange telecommunications
carrier, require the violating telecommunications carrier
to pay to the subscriber's chosen telecommunications
carrier the amount the chosen telecommunications carrier
would have collected for the telecommunications service.
The Commission is authorized to reduce this payment by
any amount already paid by the violating
telecommunications carrier to the subscriber's chosen
telecommunications carrier for those telecommunications
services.
(4) Require the violating telecommunications
carrier to pay a fine of up to $1,000 into the Public
Utility Fund for each repeated and intentional violation
of this Section.
(5) In the case of an unauthorized additional
telecommunications service, require the violating carrier
to refund or cancel all charges for telecommunications
services or products provided without a subscriber's
authorization.
(6) Issue a cease and desist order.
(7) For a pattern of violation of this Section or
for intentionally violating a cease and desist order,
revoke the violating telecommunications carrier's
certificate of service authority. The Commission may
adopt rules prescribing procedures for the verification
of a change in a subscriber's selection of a
telecommunications carrier for the provision of
telecommunications service, whether local exchange or
interexchange. The rules shall be compatible with the
verification procedures established by the Federal
Communications Commission under the Communications Act of
1996.
(Source: P.A. 89-497, eff. 6-27-96.)
Section 10. The Consumer Fraud and Deceptive Business
Practices Act is amended by changing Section 2DD and adding
Section 2II as follows:
(815 ILCS 505/2DD)
Sec. 2DD. Telecommunication service provider selection.
A telecommunication carrier shall not submit or execute a
change in a subscriber's selection of a provider of local
exchange telecommunications service or interexchange
telecommunications service or provide any additional
telecommunications service as defined in Section 13-902 of
the Public Utilities Act except in accordance with (i) the
verification procedures adopted by the Federal Communications
Commission under the Communications Act of 1996, including
subpart K of 47 CFR 64, as those procedures are from time to
time amended, and (ii) Section 13-902 of the Public
Utilities Act and any rules adopted by the Illinois Commerce
Commission under the authority of that Section 13-902 of the
Public Utilities Act, as those rules are from time to time
amended. A telecommunications carrier that violates this
Section commits an unlawful practice within the meaning of
this Act.
(Source: P.A. 89-497, eff. 6-27-96.)
(815 ILCS 505/2II new)
Sec. 2II. Prohibition of sweepstakes boxes and
conditions upon use of prize promotions to solicit authority
to provide telecommunications or related service.
(a) As used in this Section, the following terms have
the meaning set forth herein:
(1) "Telecommunications carrier" has the meaning
given in Section 13-202 of the Public Utilities Act,
except that "telecommunications carrier" does not include
a provider of commercial mobile radio services (as
defined by 47 U.S.C. 332(d)(1).
(2) "Telecommunications service" has the meaning
given in Section 13-203 of the Public Utilities Act.
(3) "Enhanced telecommunications service" means any
service or merchandise, other than interLATA, intraLATA,
or local exchange service for which any charge or
assessment appears on a billing statement directed to a
consumer by a telecommunications carrier.
(4) "Sweepstakes box" means the box or receptacle
into which consumers place entry forms or documents used
to enter sweepstakes, contests, or drawings of any
description, and promotional materials attached thereto.
(b) It is an unfair or deceptive act or practice within
the meaning of Section 2 of this Act for any person to
solicit authority to execute a change of telecommunications
carrier or to solicit authority to provide any
telecommunications service or enhanced telecommunications
service through the use of any sweepstakes box.
(c) Forms or documents used or intended to be used by
consumers to enter sweepstakes, contests, or drawings of any
description may not be used by any person as written
authority to execute a change of any person's
telecommunications carrier or to render any
telecommunications service or enhanced telecommunications
service.
(d) Any person who solicits any authority to execute a
change of any person's telecommunications carrier or to
render any telecommunications service or enhanced
telecommunications service through or in conjunction with any
sweepstakes, contest, or drawing shall clearly,
conspicuously, and fully disclose in all direct mail
solicitations to consumers the fact that the sweepstakes,
contest, or drawing is intended to solicit authority to
execute a change of telecommunications carrier or render
telecommunications service or enhanced telecommunications
service. The disclosure shall include, at the least, the
following information:
(1) that no purchase or change of
telecommunications carrier or service is required to
enter the sweepstakes, contest, or drawing;
(2) the alternative means by which a person may
enter the sweepstakes, contest, or drawing without
authorizing a change of telecommunications carrier or
service or making a purchase;
(3) the name and telephone number of the entity
soliciting consumers to make a purchase or to authorize a
change of telecommunications carrier or service through
the use of or in conjunction with the sweepstakes,
contest, or drawing; and
(4) a brief description of the nature of the
telecommunications services or enhanced
telecommunications services for which authorization is
sought through the use of or in conjunction with the
sweepstakes, contest, or drawing.
(e) It is an unfair or deceptive act or practice within
the meaning of Section 2 of this Act for any person to use a
form or document used or intended to be used by consumers to
enter sweepstakes, contests, or drawings of any description
as written authority to execute a change of any person's
telecommunications carrier or to render any
telecommunications service or enhanced telecommunications
service or for any person to solicit authority to execute a
change of telecommunications carrier or to solicit authority
to provide any telecommunications service or enhanced
telecommunications service through or in conjunction with any
sweepstakes, contest, or drawing in a manner not in
compliance with this Section. Nothing in this Section shall
be construed to prohibit any person from offering a premium,
incentive, or thing of value to another as consideration for
authorizing a change of telecommunications carrier or the
rendition of any telecommunications service or enhanced
telecommunications service, provided that no element of
chance or skill is associated with the offer of the premium,
incentive, or thing of value or the receipt thereof.
Section 99. Effective date. This Act takes effect upon
becoming law.