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90_SB1567eng 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 Engrossed 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Utilities Act is amended by 6 changing Section 13-902 as follows: 7 (220 ILCS 5/13-902) 8 (Section scheduled to be repealed on July 1, 2001) 9 Sec. 13-902.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 and 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 of a telecommunications carrier may not 21 be switched to another telecommunications carrier without the 22 subscriber's authorization. 23 (c) A telecommunications carrier shall not effectuate a 24 change to a subscriber's telecommunications services by 25 providing an additional telecommunications service that 26 results in an additional monthly charge to the subscriber 27 (herein referred to as an "additional telecommunications 28 service") without following the subscriber notification 29 procedures set forth in this Section. An "additional 30 telecommunications service" does not include making available 31 any additional telecommunications services on a subscriber's SB1567 Engrossed -2- LRB9010645JSmg 1 line when the subscriber activates and pays for the services 2 on a per use basis. 3 (d) It is the responsibility of the company or carrier 4 requesting a change in a subscriber's telecommunications 5 carrier to obtain the subscriber's authorization for the 6 change whenever the company or carrier acts as a subscriber's 7 agent with respect to the change. 8 (e) A company or carrier requesting a change in a 9 subscriber's telecommunications carrier as described in 10 subsection (d) shall be solely responsible for providing 11 written notice of the change to the subscriber in accordance 12 with this Section, or for obtaining verification of the 13 subscriber's assent to the change in accordance with this 14 Section. In addition, a telecommunications carrier that 15 provides any additional telecommunications service to a 16 subscriber shall be solely responsible for providing written 17 notice of the additional telecommunications service to the 18 subscriber in accordance with this Section, or for obtaining 19 verification of the subscriber's assent to the additional 20 telecommunications service in accordance with this Section. 21 (1) If the company or carrier elects to provide 22 written notice in accordance with this Section, the 23 notice shall be provided as follows: 24 (A) A letter to the subscriber must be mailed 25 using first class mail, postage prepaid, no later 26 than 6 days after the carrier requesting a change in 27 the subscriber's telecommunications carrier is on 28 notice that the change has occurred or no later than 29 6 days after the installation of an additional 30 telecommunications service has occurred. 31 (B) The letter must be a separate document 32 sent for the sole purpose of describing the changes 33 or additions authorized by the subscriber. 34 (C) The letter must be printed with 10 point SB1567 Engrossed -3- LRB9010645JSmg 1 or larger type and contain clear and plain language 2 that confirms the details of a change in carrier or 3 the additional telecommunications service and 4 provides the subscriber with a toll free number to 5 call should the subscriber wish to delete services 6 or make additional changes. 7 (2) If the company or carrier elects to obtain 8 verification in accordance with this Section, 9 verification shall be obtained as follows: 10 (A) Verification shall be obtained by an 11 independent third-party that: 12 (i) operates from a facility physically 13 separate from that of the telecommunications 14 carrier or company seeking the change or 15 addition of service; 16 (ii) is not directly or indirectly 17 managed, controlled, directed, or owned wholly 18 or in part by the telecommunications carrier or 19 company seeking the change or addition of 20 service; 21 (iii) does not derive commissions or 22 compensation based upon the number of sales, 23 changes, or additions confirmed; and 24 (iv) shall retain records of the 25 confirmation of sales or changes for 24 months. 26 (B) The third-party verification agent shall 27 state to the consumer, and obtain the consumer's 28 assent to, the following disclosures: 29 (i) the consumer's name, address, and the 30 numbers of all telephone lines that will be 31 changed or to which services will be added; 32 (ii) the names of the telecommunications 33 carrier or company that is replacing a previous 34 carrier or adding to the consumer's account SB1567 Engrossed -4- LRB9010645JSmg 1 and, where applicable, the name of the carriers 2 being replaced; 3 (iii) the fact that the consumer can 4 designate only one telecommunications carrier 5 to handle the consumer's local, long distance, 6 or local toll service where a change of local, 7 long distance, or local toll service is being 8 verified; and 9 (iv) the fact that a fee may be imposed 10 for the change of carriers or that a monthly 11 recurring fee may be charged for the additional 12 service, if that is the case. 13 (C) The third-party verification agent shall 14 obtain verification no later than 3 days after the 15 carrier requesting a change in the subscriber's 16 telecommunications carrier is on notice that the 17 change has occurred or no later than 3 days after 18 installation of an additional telecommunications 19 service has occurred. 20 (D) The telephone call from the verification 21 agent shall be a separate and distinct telephone 22 call placed to the consumer. The telecommunications 23 carrier or company seeking to implement the change 24 in service or additional service shall not connect 25 the consumer to the verification agent, nor shall 26 the telecommunications carrier or company take any 27 part in the verification call. 28 (3) The verification or notice requirements 29 described in this subsection shall apply to all sales, 30 changes, additions, or authorizations obtained by 31 telemarketing. 32 (4) Verifications conducted or obtained in a manner 33 not in compliance with this Section or notice given in a 34 manner not in compliance with this Section shall be void SB1567 Engrossed -5- LRB9010645JSmg 1 and without effect. 2 (f) The Commission shall promulgate any rules necessary 3 to ensure that a subscriber of a telecommunications carrier 4 is not switched to another telecommunications carrier or that 5 an additional telecommunications service is not added without 6 the subscriber's authorization. The rules promulgated under 7 this Section shall comport with the rules, if any, 8 promulgated by the Attorney General pursuant to the Consumer 9 Fraud and Deceptive Business Practices Act. 10 (g) Complaints may be filed with the Commission under 11 this Section by a subscriber who has been switched to another 12 telecommunications carrier without authorization or has been 13 provided an additional telecommunications service not ordered 14 by the subscriber, by a telecommunications carrier that has 15 been removed as a subscriber's telecommunications carrier 16 without authorization, or by the Commission on its own 17 motion. Upon filing of the complaint, the parties may 18 mutually agree to submit the complaint to the Commission's 19 established mediation process. Remedies agreed to during the 20 mediation process may include, but shall not be limited to, 21 remedies set forth below in paragraphs (1) through (5). The 22 Commission may in its discretion deny the availability of the 23 mediation process to parties, who in its judgment, may have 24 engaged in a pattern of conduct inconsistent with this 25 Section. If no agreement is reached to submit the complaint 26 or if no agreement is reached during the mediation process, 27 hearings shall be held pursuant to Article 10 of this Act. 28 If after notice and hearing, the Commission finds that a 29 telecommunications carrier has violated this Section or a 30 rule promulgated under this Section, the Commission may in 31 its discretion order any one or more of the following: 32 (1) In case of an unauthorized switch to a 33 telecommunications carrier, require the violating 34 telecommunications carrier to refund to the subscriber SB1567 Engrossed -6- LRB9010645JSmg 1 all fees and charges collected from the subscriber for 2 services up to the time the subscriber receives written 3 notice of the fact that the violating carrier is 4 providing telecommunications service to the subscriber. 5 Notice consistent with paragraph (1) of subsection (e) 6 shall be deemed to satisfy the notice requirement of this 7 paragraph. 8 (2) In case of an unauthorized switch to a 9 telecommunications carrier, require the violating 10 telecommunications carrier to refund to the subscriber 11 charges collected in excess of those that would have been 12 charged by the subscriber's chosen telecommunications 13 carrier. 14 (3) In case of an unauthorized switch to a 15 telecommunications carrier, require the violating 16 telecommunications carrier to pay to the subscriber's 17 chosen telecommunications carrier the amount the chosen 18 telecommunications carrier would have collected for the 19 telecommunications service. 20 (4) Require the violating telecommunications 21 carrier to pay a fine of up to $1,000 into the Public 22 Utility Fund for each repeated and intentional violation 23 of this Section. 24 (5) In the case of an unauthorized additional 25 telecommunications service, require the violating carrier 26 to refund all charges for telecommunications products and 27 services provided without a subscriber's authorization. 28 (6) Issue a cease and desist order. 29 (7) For a pattern of violation of this Section, 30 revoke the violating telecommunications carrier's 31 certificate of service authority.The Commission may32adopt rules prescribing procedures for the verification33of a change in a subscriber's selection of a34telecommunications carrier for the provision ofSB1567 Engrossed -7- LRB9010645JSmg 1telecommunications service, whether local exchange or2interexchange. The rules shall be compatible with the3verification procedures established by the Federal4Communications Commission under the Communications Act of51996.6 (Source: P.A. 89-497, eff. 6-27-96.) 7 Section 10. The Consumer Fraud and Deceptive Business 8 Practices Act is amended by adding Section 2II as follows: 9 (815 ILCS 505/2II new) 10 Sec. 2II. Prohibition of sweepstakes boxes and 11 conditions upon use of prize promotions to solicit authority 12 to provide telecommunications or related service. 13 (a) As used in this Section, the following terms have 14 the meaning set forth herein: 15 (1) "Telecommunications carrier" has the meaning 16 given in Section 13-202 of the Public Utilities Act, 17 except that "telecommunications carrier" does not include 18 a provider of commercial mobile radio services (as 19 defined by 47 U.S.C. 332(d)(1). 20 (2) "Telecommunications service" has the meaning 21 given in Section 13-203 of the Public Utilities Act. 22 (3) "Enhanced telecommunications service" means any 23 service or merchandise, other than interLATA, intraLATA, 24 or local exchange service for which any charge or 25 assessment appears on a billing statement directed to a 26 consumer by a telecommunications carrier. 27 (4) "Sweepstakes box" means the box or receptacle 28 into which consumers place entry forms or documents used 29 to enter sweepstakes, contests, or drawings of any 30 description, and promotional materials attached thereto. 31 (b) It is an unfair or deceptive act or practice within 32 the meaning of Section 2 of this Act for any person to SB1567 Engrossed -8- LRB9010645JSmg 1 solicit authority to execute a change of telecommunications 2 carrier or to solicit authority to provide any 3 telecommunications service or enhanced telecommunications 4 service through the use of any sweepstakes box. 5 (c) Forms or documents used or intended to be used by 6 consumers to enter sweepstakes, contests, or drawings of any 7 description may not be used by any person as written 8 authority to execute a change of any person's 9 telecommunications carrier or to render any 10 telecommunications service or enhanced telecommunications 11 service. 12 (d) Any person who solicits any authority to execute a 13 change of any person's telecommunications carrier or to 14 render any telecommunications service or enhanced 15 telecommunications service through or in conjunction with any 16 sweepstakes, contest, or drawing shall clearly, 17 conspicuously, and fully disclose in all direct mail 18 solicitations to consumers the fact that the sweepstakes, 19 contest, or drawing is intended to solicit authority to 20 execute a change of telecommunications carrier or render 21 telecommunications service or enhanced telecommunications 22 service. The disclosure shall include, at the least, the 23 following information: 24 (1) that no purchase or change of 25 telecommunications carrier or service is required to 26 enter the sweepstakes, contest, or drawing; 27 (2) the alternative means by which a person may 28 enter the sweepstakes, contest, or drawing without 29 authorizing a change of telecommunications carrier or 30 service or making a purchase; 31 (3) the name and telephone number of the entity 32 soliciting consumers to make a purchase or to authorize a 33 change of telecommunications carrier or service through 34 the use of or in conjunction with the sweepstakes, SB1567 Engrossed -9- LRB9010645JSmg 1 contest, or drawing; and 2 (4) a brief description of the nature of the 3 telecommunications services or enhanced 4 telecommunications services for which authorization is 5 sought through the use of or in conjunction with the 6 sweepstakes, contest, or drawing. 7 (e) It is an unfair or deceptive act or practice within 8 the meaning of Section 2 of this Act for any person to use a 9 form or document used or intended to be used by consumers to 10 enter sweepstakes, contests, or drawings of any description 11 as written authority to execute a change of any person's 12 telecommunications carrier or to render any 13 telecommunications service or enhanced telecommunications 14 service or for any person to solicit authority to execute a 15 change of telecommunications carrier or to solicit authority 16 to provide any telecommunications service or enhanced 17 telecommunications service through or in conjunction with any 18 sweepstakes, contest, or drawing in a manner not in 19 compliance with this Section. Nothing in this Section shall 20 be construed to prohibit any person from offering a premium, 21 incentive, or thing of value to another as consideration for 22 authorizing a change of telecommunications carrier or the 23 rendition of any telecommunications service or enhanced 24 telecommunications service, provided that no element of 25 chance or skill is associated with the offer of the premium, 26 incentive, or thing of value or the receipt thereof. 27 Section 99. Effective date. This Act takes effect upon 28 becoming law.