[atlas:bill]

AN ACT Relating to unauthorized changes and billing for telecommunication services; adding new sections to chapter 80.36 RCW; creating new sections; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that changes in the rapidly changing telecommunications market are resulting in new consumer problems. The legislature further finds that unauthorized

changes in telecommunications service, known commonly as slamming, and unauthorized billing for service on telecommunications bills, known commonly as cramming, are unfair and deceptive consumer practices. The legislature further finds that consumers should have options available to protect themselves against unauthorized service changes and billings. In addition, current penalties and remedies need to be increased to provide a more effective deterrent to these practices.

NEW SECTION. Sec. 2. (1) Every local exchange telecommunications company must offer to its customers, as a part of basic local service and at no additional cost, the following optional services:

(a) Account freeze service. Account freeze procedures, including any solicitation, must clearly distinguish among telecommunications services subject to an account freeze. The carrier offering the freeze must obtain separate authorization for each service for which an account freeze is requested. If a customer has subscribed to account freeze service, the local exchange company may not make changes to the customer's local or long-distance service except on direct oral or written direction of the customer and shall reject any orders for change in service that are purported to be submitted on behalf of the customer; and

(b) Bill block service. If a customer has subscribed to bill block service, the local exchange company may not bill the customer for nontelecommunications services or for telecommunications services provided by a company other than the customer's local exchange company or authorized long-distance carrier.

(2) Each local exchange telecommunications company must notify its customers of the services described in this section at the time service is established and at least once per year thereafter. The commission may prescribe the form of notice by rule.

NEW SECTION. Sec. 3. All lists of charges for services that appear on a consumer's bill shall be clear, separate, and distinct. At a minimum, all bills must clearly identify on the bill the business name of the company making the charge, the specific product or service being billed for, separate identification of any optional products or services, and a toll-free contact number for disputing a charge. The commission may prescribe the form of bill disclosure by rule.

NEW SECTION. Sec. 4. (1)(a) No person shall: (i) Cause a change in a subscriber's selection of telecommunications company without the subscriber's authorization as prescribed by the commission; (ii) cause a change in a subscriber's selection of telecommunications company without the subscriber's written authorization where the subscriber is sixty-five years old or older; and (iii) place or cause to be placed an unauthorized charge on a subscriber's telecommunications account.

(b) Any customer who is the victim of acts prohibited by this section is absolved of liability for (i) all charges imposed by the unauthorized carrier for products or services provided during the first thirty days after the unauthorized change, or for a longer period of time as permitted by the commission; (ii) all charges required to return the customer to his or her properly authorized carrier; and (iii) all other charges imposed in connection with the unauthorized change.

(2) Upon being informed by a customer that an unauthorized change has occurred, the local exchange carrier shall immediately (a) return the customer to his or her authorized telecommunications carrier; (b) inform the customer of the thirty-day absolution period; and (c) remove charges, if any, from the customer's bill for charges incurred within the first thirty days of the unauthorized change and any charges required to return the customer to his or her properly authorized carrier.

(3) If a customer disputes a charge for nontelecommunications service, or telecommunications services provided by a company other than the customer's local exchange carrier or authorized long-distance carrier, the local exchange company shall remove the charge from the bill. This subsection does not affect the ability of the charging company to independently collect legitimate charges.

(4) The commission may adopt rules to enforce this section.

NEW SECTION. Sec. 5. In addition to any other penalties provided by law, the commission may impose any one or more of the following penalties:

(1) Order payment by an unauthorized service provider to the service provider previously selected by the subscriber in an amount not to exceed all charges billed to the subscriber by the unauthorized service provider for services provided during the unauthorized service period; and

(2) Order the unauthorized service provider to refund all payments made by the subscriber for services provided during the unauthorized service period.

NEW SECTION. Sec. 6. The legislature finds that the practices covered by sections 2 through 4 of this act are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW. A violation of section 2, 3, or 4 of this act is not reasonable in relation to the development and preservation of business and is an unfair or deceptive act in trade or commerce and an unfair method of competition for the purpose of applying the consumer protection act, chapter 19.86 RCW. In any action under chapter 19.86 RCW, a person who proves any of the causes of action identified in this section is entitled to a presumption of injury and in addition to recovering costs and reasonable attorneys' fees, damages may be ordered in the amount of two thousand five hundred dollars.

NEW SECTION. Sec. 7. The Washington utilities and transportation commission and the attorney general shall assess and report to the legislature by June 2000 whether the practices of unauthorized service changes and billing have been deterred by this act and may make recommendations to the legislature with regard to enforcement.

NEW SECTION. Sec. 8. Sections 2 through 6 of this act are each added to chapter 80.36 RCW.

NEW SECTION. Sec. 9. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.