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90_SB1567enr 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 Enrolled 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Utilities Act is amended by 6 changing Section 13-902 as follows: 7 (220 ILCS 5/13-902) 8 (Section scheduled to be repealed on July 1, 2001) 9 Sec. 13-902.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 or 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's presubscription of a primary exchange 21 or interexchange telecommunications carrier may not be 22 switched to another telecommunications carrier without the 23 subscriber's authorization. 24 (c) A telecommunications carrier shall not effectuate a 25 change to a subscriber's telecommunications services by 26 providing an additional telecommunications service that 27 results in an additional monthly charge to the subscriber 28 (herein referred to as an "additional telecommunications 29 service") without following the subscriber notification 30 procedures set forth in this Section. An "additional 31 telecommunications service" does not include making available SB1567 Enrolled -2- LRB9010645JSmg 1 any additional telecommunications services on a subscriber's 2 line when the subscriber activates and pays for the services 3 on a per use basis. 4 (d) It is the responsibility of the company or carrier 5 requesting a change in a subscriber's telecommunications 6 carrier to obtain the subscriber's authorization for the 7 change whenever the company or carrier acts as a subscriber's 8 agent with respect to the change. 9 (e) A company or telecommunications carrier submitting a 10 change in a subscriber's primary exchange or interexchange 11 telecommunications carrier as described in subsection (d) 12 shall be solely responsible for providing written notice of 13 the change to the subscriber in accordance with this Section, 14 or for obtaining verification of the subscriber's assent to 15 the change in accordance with this Section. In addition, a 16 telecommunications carrier that provides any additional 17 telecommunications service to a subscriber shall be solely 18 responsible for providing written notice of the additional 19 telecommunications service to the subscriber in accordance 20 with this Section, or for obtaining verification of the 21 subscriber's assent to the additional telecommunications 22 service in accordance with this Section. 23 (1) If the company or telecommunications carrier 24 elects to provide written notice in accordance with this 25 Section, the notice shall be provided as follows: 26 (A) A letter to the subscriber must be mailed 27 using first class mail, postage prepaid, no later 28 than 10 days after the telecommunications carrier 29 submitting the change in the subscriber's primary 30 exchange or interexchange telecommunications carrier 31 is on notice that the change has occurred or no 32 later than 10 days after initiation of an additional 33 telecommunications service has occurred. 34 (B) The letter must be a separate document SB1567 Enrolled -3- LRB9010645JSmg 1 sent for the sole purpose of describing the changes 2 or additions authorized by the subscriber. 3 (C) The letter must be printed with 10 point 4 or larger type and contain clear and plain language 5 that confirms the details of a change in the 6 presubscribed telecommunications carrier or of the 7 addition of the telecommunications service and 8 provides the subscriber with a toll free number to 9 call should the subscriber wish to cancel the change 10 or make additional changes. 11 (2) If the company or telecommunications carrier 12 elects to obtain verification in accordance with this 13 Section, verification shall be obtained as follows: 14 (A) Verification shall be obtained by an 15 independent third-party that: 16 (i) operates from a facility physically 17 separate from that of the telecommunications 18 carrier or company seeking the change or 19 addition of service; 20 (ii) is not directly or indirectly 21 managed, controlled, directed, or owned wholly 22 or in part by the telecommunications carrier or 23 company seeking the change or addition of 24 telecommunications services; 25 (iii) does not derive commissions or 26 compensation based upon the number of sales, 27 changes, or additions confirmed; and 28 (iv) shall retain records of the 29 confirmation of sales or changes for 24 months. 30 (B) The third-party verification agent shall 31 state to the subscriber, and shall obtain the 32 subscriber's acknowledgement to, the following 33 disclosures: 34 (i) the consumer's name, address, and the SB1567 Enrolled -4- LRB9010645JSmg 1 telephone numbers of all telephone lines that 2 will be changed or to which additional 3 telecommunications services will be added; 4 (ii) the names of the telecommunications 5 carrier or company that is replacing the 6 previous presubscribed telecommunications 7 carrier or adding a telecommunications service 8 to the subscriber's account and, where 9 applicable, the name of the carriers being 10 replaced; 11 (iii) in cases where verification is 12 sought for the subscriber's presubscribed 13 telecommunications carrier, that for each line 14 the subscriber can designate only one 15 presubscribed telecommunications carrier to 16 handle each of the subscriber's local, long 17 distance, or local toll service depending upon 18 which presubscribed telecommunications service 19 or services are being verified; and 20 (iv) the fact that a fee may be imposed 21 on the subscriber for the change of primary 22 exchange or interexchange telecommunications 23 carriers or that a monthly recurring fee may be 24 charged for the additional service, if that is 25 the case. 26 (C) The third-party verification agent shall 27 obtain verification no later than 3 days after the 28 carrier submitting a change in the subscriber's 29 primary exchange or interexchange telecommunications 30 carrier is on notice that the change has occurred or 31 no later than 3 days after initiation of an 32 additional telecommunications service has occurred. 33 (D) The telecommunications company or carrier 34 seeking to implement the change in service or SB1567 Enrolled -5- LRB9010645JSmg 1 additional service may connect the subscriber to the 2 verification agent, provided that all of the 3 requirements for verification by a third party as 4 set forth in this Section are otherwise complied 5 with fully. 6 (3) The verification or notice requirements 7 described in this subsection shall apply to all changes 8 to a subscriber's presubscription of a primary exchange 9 or interexchange telecommunications carrier, whether the 10 change was initiated through an inbound call initiated by 11 the customer or outbound telemarketing. Where a 12 subscriber's telecommunications services are changed by 13 the provision of an additional telecommunications 14 service, the verification or notice requirements 15 described in this subsection shall apply if the change 16 was initiated through outbound telemarketing. Where a 17 subscriber's telecommunications services are changed by 18 the provision of an additional telecommunications service 19 and the change was initiated through inbound 20 telemarketing, the telecommunications carrier shall 21 comply with all rules or regulations promulgated by the 22 Federal Communications Commission. 23 (4) Verifications conducted or obtained in a manner 24 not in compliance with this Section or notice given in a 25 manner not in compliance with this Section shall be void 26 and without effect. 27 (f) The Commission shall promulgate any rules necessary 28 to ensure that the primary exchange or interexchange 29 telecommunications carrier of a subscriber is not changed to 30 another telecommunications carrier or that an additional 31 telecommunications service is not added without the 32 subscriber's authorization. The rules promulgated under this 33 Section shall comport with the rules, if any, promulgated by 34 the Attorney General pursuant to the Consumer Fraud and SB1567 Enrolled -6- LRB9010645JSmg 1 Deceptive Business Practices Act and with any rules 2 promulgated by the Federal Communications Commission. 3 (g) Complaints may be filed with the Commission under 4 this Section by a subscriber whose primary exchange or 5 interexchange carrier has been changed to another 6 telecommunications carrier without authorization or who has 7 been provided an additional telecommunications service not 8 ordered by the subscriber, by a telecommunications carrier 9 that has been removed as a subscriber's primary exchange or 10 interexchange telecommunications carrier without 11 authorization, or by the Commission on its own motion. Upon 12 filing of the complaint, the parties may mutually agree to 13 submit the complaint to the Commission's established 14 mediation process. Remedies in the mediation process may 15 include, but shall not be limited to, the remedies set forth 16 in paragraphs (1) through (5) of this subsection. In its 17 discretion, the Commission may deny the availability of the 18 mediation process and submit the complaint to hearings. If 19 the complaint is not submitted to mediation or if no 20 agreement is reached during the mediation process, hearings 21 shall be held on the complaint pursuant to Article 10 of this 22 Act. If after notice and hearing, the Commission finds that 23 a telecommunications carrier has violated this Section or a 24 rule promulgated under this Section, the Commission may in 25 its discretion order any one or more of the following: 26 (1) In case of an unauthorized change in a 27 subscriber's primary exchange or interexchange 28 telecommunications carrier, require the violating 29 telecommunications carrier to refund to the subscriber 30 all fees and charges collected from the subscriber for 31 services up to the time the subscriber receives written 32 notice of the fact that the violating carrier is 33 providing telecommunications service to the subscriber. 34 For a carrier that elects to provide written notice of a SB1567 Enrolled -7- LRB9010645JSmg 1 change in a subscriber's primary exchange or 2 interexchange carrier, notice consistent with 3 paragraph (1) of subsection (e) shall be deemed to be 4 receipt of notice by the subscriber for purposes of this 5 paragraph. For a carrier that elects to obtain 6 verification of a change in a subscriber's primary 7 exchange or interexchange carrier consistent with 8 paragraph (2) of subsection (e) of this Section, either 9 the first correspondence from the carrier that notifies 10 the customer of the change or the subscriber's first bill 11 for services, whichever is mailed first, shall be deemed 12 to be receipt of notice by the subscriber for purposes of 13 this paragraph. The Commission may order the remedial 14 action outlined in this subsection only to the extent 15 that the same remedial action is allowed pursuant to 16 rules or regulations promulgated by the Federal 17 Communications Commission. 18 (2) In case of an unauthorized change in the 19 primary exchange or interexchange telecommunications 20 carrier, require the violating telecommunications carrier 21 to refund to the subscriber charges collected in excess 22 of those that would have been charged by the subscriber's 23 chosen telecommunications carrier. 24 (3) In case of an unauthorized change in the 25 primary exchange or interexchange telecommunications 26 carrier, require the violating telecommunications carrier 27 to pay to the subscriber's chosen telecommunications 28 carrier the amount the chosen telecommunications carrier 29 would have collected for the telecommunications service. 30 The Commission is authorized to reduce this payment by 31 any amount already paid by the violating 32 telecommunications carrier to the subscriber's chosen 33 telecommunications carrier for those telecommunications 34 services. SB1567 Enrolled -8- LRB9010645JSmg 1 (4) Require the violating telecommunications 2 carrier to pay a fine of up to $1,000 into the Public 3 Utility Fund for each repeated and intentional violation 4 of this Section. 5 (5) In the case of an unauthorized additional 6 telecommunications service, require the violating carrier 7 to refund or cancel all charges for telecommunications 8 services or products provided without a subscriber's 9 authorization. 10 (6) Issue a cease and desist order. 11 (7) For a pattern of violation of this Section or 12 for intentionally violating a cease and desist order, 13 revoke the violating telecommunications carrier's 14 certificate of service authority.The Commission may15adopt rules prescribing procedures for the verification16of a change in a subscriber's selection of a17telecommunications carrier for the provision of18telecommunications service, whether local exchange or19interexchange. The rules shall be compatible with the20verification procedures established by the Federal21Communications Commission under the Communications Act of221996.23 (Source: P.A. 89-497, eff. 6-27-96.) 24 Section 10. The Consumer Fraud and Deceptive Business 25 Practices Act is amended by changing Section 2DD and adding 26 Section 2II as follows: 27 (815 ILCS 505/2DD) 28 Sec. 2DD. Telecommunication service provider selection. 29 A telecommunication carrier shall not submit or execute a 30 change in a subscriber's selection of a provider of local 31 exchange telecommunications service or interexchange 32 telecommunications service or provide any additional SB1567 Enrolled -9- LRB9010645JSmg 1 telecommunications service as defined in Section 13-902 of 2 the Public Utilities Act except in accordance with (i) the 3 verification procedures adopted by the Federal Communications 4 Commission under the Communications Act of 1996, including 5 subpart K of 47 CFR 64, as those procedures are from time to 6 time amended, and (ii) Section 13-902 of the Public 7 Utilities Act and any rules adopted by the Illinois Commerce 8 Commission under the authority of that Section13-902 of the9Public Utilities Act,as those rules are from time to time 10 amended. A telecommunications carrier that violates this 11 Section commits an unlawful practice within the meaning of 12 this Act. 13 (Source: P.A. 89-497, eff. 6-27-96.) 14 (815 ILCS 505/2II new) 15 Sec. 2II. Prohibition of sweepstakes boxes and 16 conditions upon use of prize promotions to solicit authority 17 to provide telecommunications or related service. 18 (a) As used in this Section, the following terms have 19 the meaning set forth herein: 20 (1) "Telecommunications carrier" has the meaning 21 given in Section 13-202 of the Public Utilities Act, 22 except that "telecommunications carrier" does not include 23 a provider of commercial mobile radio services (as 24 defined by 47 U.S.C. 332(d)(1). 25 (2) "Telecommunications service" has the meaning 26 given in Section 13-203 of the Public Utilities Act. 27 (3) "Enhanced telecommunications service" means any 28 service or merchandise, other than interLATA, intraLATA, 29 or local exchange service for which any charge or 30 assessment appears on a billing statement directed to a 31 consumer by a telecommunications carrier. 32 (4) "Sweepstakes box" means the box or receptacle 33 into which consumers place entry forms or documents used SB1567 Enrolled -10- LRB9010645JSmg 1 to enter sweepstakes, contests, or drawings of any 2 description, and promotional materials attached thereto. 3 (b) It is an unfair or deceptive act or practice within 4 the meaning of Section 2 of this Act for any person to 5 solicit authority to execute a change of telecommunications 6 carrier or to solicit authority to provide any 7 telecommunications service or enhanced telecommunications 8 service through the use of any sweepstakes box. 9 (c) Forms or documents used or intended to be used by 10 consumers to enter sweepstakes, contests, or drawings of any 11 description may not be used by any person as written 12 authority to execute a change of any person's 13 telecommunications carrier or to render any 14 telecommunications service or enhanced telecommunications 15 service. 16 (d) Any person who solicits any authority to execute a 17 change of any person's telecommunications carrier or to 18 render any telecommunications service or enhanced 19 telecommunications service through or in conjunction with any 20 sweepstakes, contest, or drawing shall clearly, 21 conspicuously, and fully disclose in all direct mail 22 solicitations to consumers the fact that the sweepstakes, 23 contest, or drawing is intended to solicit authority to 24 execute a change of telecommunications carrier or render 25 telecommunications service or enhanced telecommunications 26 service. The disclosure shall include, at the least, the 27 following information: 28 (1) that no purchase or change of 29 telecommunications carrier or service is required to 30 enter the sweepstakes, contest, or drawing; 31 (2) the alternative means by which a person may 32 enter the sweepstakes, contest, or drawing without 33 authorizing a change of telecommunications carrier or 34 service or making a purchase; SB1567 Enrolled -11- LRB9010645JSmg 1 (3) the name and telephone number of the entity 2 soliciting consumers to make a purchase or to authorize a 3 change of telecommunications carrier or service through 4 the use of or in conjunction with the sweepstakes, 5 contest, or drawing; and 6 (4) a brief description of the nature of the 7 telecommunications services or enhanced 8 telecommunications services for which authorization is 9 sought through the use of or in conjunction with the 10 sweepstakes, contest, or drawing. 11 (e) It is an unfair or deceptive act or practice within 12 the meaning of Section 2 of this Act for any person to use a 13 form or document used or intended to be used by consumers to 14 enter sweepstakes, contests, or drawings of any description 15 as written authority to execute a change of any person's 16 telecommunications carrier or to render any 17 telecommunications service or enhanced telecommunications 18 service or for any person to solicit authority to execute a 19 change of telecommunications carrier or to solicit authority 20 to provide any telecommunications service or enhanced 21 telecommunications service through or in conjunction with any 22 sweepstakes, contest, or drawing in a manner not in 23 compliance with this Section. Nothing in this Section shall 24 be construed to prohibit any person from offering a premium, 25 incentive, or thing of value to another as consideration for 26 authorizing a change of telecommunications carrier or the 27 rendition of any telecommunications service or enhanced 28 telecommunications service, provided that no element of 29 chance or skill is associated with the offer of the premium, 30 incentive, or thing of value or the receipt thereof. SB1567 Enrolled -12- LRB9010645JSmg 1 Section 99. Effective date. This Act takes effect upon 2 becoming law.