Agenda Date:            August 26, 1998
Item Number:     

Docket:  UT-980675
   Notice of Intent to Amend Rules WAC 480-120-139

Company Name: Telecommunications Companies - General

Staff:   Rebecca Beaton, Regulatory Consultant
   Glenn Blackmon, Assistant Director
   Vicki Elliott, Consumer Affairs Manager
   David Griffith, Senior Engineer
   Dennis Moss, Review Judge


Recommendation: 

Direct the secretary to send a letter to the local exchange companies in 
Washington requiring a report to be filed by January 15, 1999 including 1) to 
what extent they are implementing the Federal Communications Commission 
Guidelines on billing of unwanted services (cramming), 2) the specific actions 
they are taking to prevent cramming, and 3) data, compiled on a monthly basis 
for October, November and December 1998, and the number, nature, and resolution 
of complaints on cramming.

Discussion:

On July 8, 1998, the Commission approved filing with the Code Reviser a 
preproposal statement of inquiry (CR-101) of consumer protection rules against 
possible billing for unwanted services (cramming) and possible additional 
protections against unauthorized changes in service (slamming).  

The Commission proposed solicitation of comment from industry and interested 
parties on the subjects for the Commission to consider as the 
telecommunications marketplace continues to evolve. Six industry members and 
Public Counsel filed comments on August 14, 1998, in response to the 
Preproposal Statement of Intent (CR-101) and Notice of Opportunity to 
Participate.  Additionally, on August 14, 1998, the Commission held a public 
workshop in which ten interested parties participated, including Public Counsel 
and the Attorney General’s Office of Consumer Protection.

Staff recommends immediate action in this docket to require industry reporting 
and monitoring. The Commission has a significant role to play to ensure the 
issues in this docket are resolved. The Commission should require intention 
from the industry regarding implementation of guidelines, strategies, test 
models and measurements so the Commission may assess whether

Docket UT-980675
August 26, 1998
Page 1
current and developing industry practices successfully address cramming.  The 
Commission’s immediate, minimum goals are to have on record each LEC’s  “Best 
Practices,” consistent with Federal Communications Commission (FCC) guidelines, 
discussed below, to track all cramming complaints to resolution, and to ensure 
customers of consumer protection practices and information.  This program will 
continue for at least three months as part of the CR-101 Preproposal Inquiry 
process.  In addition, Staff will begin its own outreach program to inform 
consumers, to solicit consumer comments on the proposed rule process and on the 
methods devised to reduce cramming. The results of the reporting and monitoring 
program will help the Commission determine whether rules are necessary and if 
so, what form the proposed rules should take to protect consumers.  Consumers 
expect clarity and certainty from their local telephone bill and should be 
provided tools to use when those conditions do not exist. 

Staff proposes the Commission carefully evaluate on an ongoing basis 
information companies provide and information gathered by the Commission’s 
Consumer Affairs Division. This includes information gleaned via public 
process, information available from the FCC, other agencies, and any other 
information pertinent to the issues.  

Cramming is a recently identified and potentially serious problem.  The 
Commission received approximately 100 complaints about charges for unwanted 
services appearing on consumers’ telephone bills during the first half of the 
year.  On July 22, 1998, the FCC and industry adopted voluntary guidelines as 
“Best Practices” to address cramming. These practices offer guidelines for 
various methods to combat cramming and are designed to prevent, deter, and 
eliminate unwanted consumer billing practices.  The FCC has stated that it 
intends to monitor closely the success of these voluntary industry measures and 
if the outcome is not as expected, to initiate mandatory federal rules to 
address cramming. Attachment #1 is the FCC Guideline.

The Commission adopted anti-slamming protections in 1997, including a provision 
that prohibits companies from collecting for services that the customer did not 
authorize.  The FCC presently is monitoring and reviewing slamming issues and 
there is current federal legislative action related to slamming.  The 
Commission may need to revisit its slamming language contained in WAC 
480-120-139 but Staff  recommends formal action on this topic be deferred 
pending further activity at the federal level.    

Commission Staff proposes each local exchange company in Washington be required 
to file with the Commission, by January 15, 1999, the versions of the FCC 
Guidelines “Best Practices” used, the number and resolution of cramming 
complaints and additional detail related to reporting information.  This will 
allow analysis of data and continuation of policy development and rule language 
while considering federal movement on both cramming and slamming issues. 

Conclusion:

Therefore, Staff recommends that the Commission direct the Secretary to send a 
letter to the local exchange companies in Washington requiring a report to be 
filed by January 15, 1999 including 1) to what extent they are implementing the 
FCC guidelines on billing of unwanted services (cramming), 2) the specific 
actions they are taking to prevent cramming, and 3) data, compiled on a monthly 
basis for October, November, and December 1998, and the number, nature, and 
resolution of complaints on cramming.  


Attachment