Ind. Admin. Code tit. 170, r. 7-1.3-8.1 – Unauthorized switching of telecommunications providers; billing for telecommunications or other services added without customer's consent

Authority: IC 8-1

Sec. 8.1. (a) The definitions in 170 IAC 7-1.3-2 apply to this rule.

(b) No prospective PIC shall submit to a LEC a PIC change order generated by telemarketing unless the prospective PIC has first obtained express authorization from the customer. No prospective LEC shall submit a PLEC change order generated by telemarketing unless the prospective LEC has first obtained express authorization from the customer.

(c) The prospective PIC or prospective LEC shall confirm the express authorization through one (1) of the following procedures:

(1) The prospective PIC or prospective LEC shall obtain the customer's written or electronic authorization in a form that meets the requirements of subsections (e) through (n).
(2) The prospective PIC or prospective LEC shall obtain the customer's electronic authorization, placed from the telephone number or numbers on which the PIC or PLEC is to be changed, to submit a PIC or PLEC change order. The authorization shall include the information described in subsection (i). Prospective PICs or prospective LECs electing to confirm sales electronically shall establish one (1) or more toll free telephone numbers exclusively for that purpose. A call to the number or numbers will connect a customer to a voice response unit, or similar mechanism, that records the required information regarding the PIC or PLEC change, including automatically recording the automatic number identification (ANI).
(3) An appropriately qualified and independent third party shall obtain the customer's oral authorization to submit the PIC or PLEC change order. The authorization shall confirm and include appropriate verification data, for example, the customer's date of birth, mother's maiden name, or Social Security number or part thereof. The authorization is valid only if the entity that obtained the authorization:
1. (A) is independent of the prospective PIC or prospective LEC or the telemarketing representative of the prospective PIC or prospective LEC;
2. (B) complies with this section regarding changes to telecommunications carriers;
3. (C) has a written policy regarding customer complaints and abides by that policy;
4. (D) has a written policy requiring the maintenance and storage of recorded electronic authorizations for a minimum period of one (1) year and abides by that policy;
5. (E) has a written script that it uses when obtaining verifications, and the script provides clear and unambiguous notice to the customer:
  1. (i) that the customer is authorizing a change in PIC or PLEC;
  2. (ii) of the identity of the new PIC or PLEC;
  3. (iii) of a toll free or local number of the LEC that the customer can call to verify whether the change has occurred;
  4. (iv) that, for any one (1) telephone number:
    1. (AA) only one (1) prospective PIC may be designated as the subscriber's inter-LATA PIC;
    2. (BB) only one (1) prospective PIC may be designated as the subscriber's intra-LATA PIC; and
    3. (CC) only one (1) intrastate PLEC may be designated as the subscriber's PLEC;
  5. (v) that the PIC change will automatically apply to both inter-LATA and intra-LATA long distance service offerings unless the customer directs otherwise; and
  6. (vi) that the carrier change can be effectuated once the verification has been completed in full, even when the consumer has additional questions for the sales representative after the verification process;
6. (F) is in a location that is physically separate from that of the prospective PIC or prospective LEC or the telemarketing representative of the prospective PIC or prospective LEC; and
7. (G) records the date of verification at the time of the verification such that it is readily identifiable by parties that review the verification at a later date.

(d) A PIC or PLEC change made in violation of any of the requirements of this section is invalid. A prospective PIC or PLEC must provide all information regarding disputed carrier changes and services billings to the commission within thirty (30) days of a commission request for the information.

(e) If the prospective PIC or prospective LEC utilizes the authorization procedure in subsection (c)(1), the prospective PIC or LEC shall obtain any necessary written authorization from a subscriber for a PIC or PLEC change by using an LOA or ELOA as specified in subsections (f) through (n). Any LOA or ELOA that does not conform to those subsections is invalid.

(f) The LOA or ELOA shall be a separate document (or an easily separable document) or located on a separate screen or webpage containing only the authorizing language described in subsection (i), whose sole purpose is to authorize a prospective PIC or LEC to initiate a PIC or PLEC change. The LOA must be signed and dated by the subscriber to the telephone line or lines requesting the PIC or PLEC change. The subscriber (or authorized agent in the case of a business customer) whose name appears on bills for local and interexchange service shall be the only party authorized to execute an LOA.

(g) The LOA shall not be combined with inducements of any kind on the same document, screen, or webpage.

(h) Notwithstanding subsections (f) and (g), the LOA may be combined with checks that contain only the required LOA language prescribed in subsection (i) and the necessary information to make the check a negotiable instrument. The LOA check shall not contain any promotional language or material. The LOA check shall contain, in easily readable, boldface type on the front of the check, a notice that the consumer is authorizing a PIC or PLEC change by signing the check. The LOA language shall also be placed near the signature line on the back of the check.

(i) At a minimum, the LOA must be printed with a typeface of sufficient size and clarity to be clearly legible and must contain clear and unambiguous language that confirms:

(1) the subscriber's billing name and address and each telephone number to be covered by the PIC or PLEC change order;
(2) the subscriber's decision to change the PIC or PLEC from the current IXC or LEC to the prospective IXC or prospective LEC;
(3) that the subscriber designates the prospective IXC or prospective LEC to act as the subscriber's agent for the PIC or PLEC change;
(4) that the subscriber understands that, for any one (1) telephone number:
1. (A) only one (1) prospective PIC may be designated as the subscriber's inter-LATA PIC;
2. (B) only one (1) prospective PIC may be designated as the subscriber's intra-LATA PIC; and
3. (C) only one (1) intrastate PLEC may be designated as the subscriber's intrastate PLEC;
(5) that the subscriber understands that any change in PIC or PLEC may result in a charge to the subscriber; and
(6) the LEC's toll free or local number that the customer can call to verify whether the change has occurred.

(j) To the extent a customer selects separate carriers for inter-LATA, intra-LATA, and LEC services, the LOA must contain separate statements regarding those choices. Any carrier designated as a PIC for inter-LATA service must be the carrier directly setting the inter-LATA service rates for the subscriber. Any carrier designated as a PIC for intra-LATA services must be the carrier directly setting the intra-LATA service rates for the subscriber. Any carrier designated as a PLEC must be the LEC directly setting the local exchange service rates for the subscriber. One (1) IXC can be both a subscriber's inter-LATA PIC and a subscriber's intra-LATA PIC.

(k) LOAs shall not suggest or require that a subscriber take some action in order to retain the subscriber's current IXC or LEC.

(l) If any portion of an LOA is translated into a language other than English, then all portions of the LOA must be translated into that language. Every LOA must be translated into the same language as any promotional materials, oral descriptions, or instructions provided with the LOA.

(m) The LOA shall:

(1) provide the toll free telephone number and mailing address of the consumer affairs division of the commission; and
(2) inform the customer of his or her right to file a complaint with that division.

(n) LOAs submitted with an electronically signed authorization must include the consumer disclosures required by Section 101(c) of the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. 7001(c).

(o) Upon request of the customer, offers to provide telecommunications interexchange or local exchange services shall be sent to the customer in written form describing the terms and conditions of service.

(p) Except for customer-initiated or one-time use products, such as collect calling services, optional pay-per-use services (including automatic callback, repeat dialing, and three-way calling), no PIC or LEC or any billing agent acting for the PIC or LEC shall bill a customer for any service unless the PIC, LEC, or billing agent possesses written or electronic documentation that shows:

(1) the name of the customer requesting the service;
(2) a description of the service requested by the customer;
(3) the date on which the customer requested the service;
(4) the means by which the customer requested the service; and
(5) the name, address, and telephone number of all sales agents involved.

(q) No PIC, LEC, or billing agent for any PIC or LEC shall be entitled to any compensation from a customer for services rendered in violation of this rule.

(r) The customer's local exchange company shall not disconnect the customer's phone service for nonpayment where the customer has properly disputed a carrier change or service billing.

(s) A telecommunications carrier shall submit a preferred carrier change order on behalf of a subscriber within sixty (60) days of obtaining a written or electronically signed LOA. However, LOAs for multiline or multilocation, or both, business customers that have entered into negotiated agreements with carriers to add presubscribed lines to their business locations during the course of a term agreement shall be valid for the period specified in the term agreement.

(t) A telecommunications carrier may acquire, through a sale or transfer, either part or all of another telecommunications carrier's subscriber base without obtaining each subscriber's express authorization provided that the acquiring carrier complies with the following streamlined procedures:

(1) No later than thirty (30) days before the planned transfer of the affected subscribers from the selling or transferring carrier to the acquiring carrier, the acquiring carrier shall file notice with the commission providing:
1. (A) the names of the parties to the transaction;
2. (B) the types of telecommunication service to be provided to the affected subscribers;
3. (C) the date of transfer of the subscriber base to the acquiring carrier; and
4. (D) certification that the acquiring carrier shall comply with the requirement to provide advance consumer notice in accordance with 47 CFR 64.1120(e)(3).

(u) This rule shall apply only to the extent not preempted by federal law.

(Indiana Utility Regulatory Commission; 170 IAC 7-1.3-8.1; filed Oct 8, 2010, 10:35 a.m.: 20101103-IR-170090478FRA; readopted filed Jul 12, 2016, 10:01 a.m.: 20160810-IR-170160168RFA; readopted filed Jul 12, 2022, 12:18 p.m.: 20220810-IR-170220116RFA)