PacBell Denounces Huge PUC Fine Over Sales Tactics, Vows to Appeal

Pacific Bell officials on Thursday lashed out against a Public Utilities Commission ruling that imposed more than $44 million in penalties on the phone company for using misleading sales tactics, calling the month-old decision “an unprecedented regulatory assault on business” that should be overturned on appeal.

PacBell, the state’s largest phone company, said it will file a formal appeal with the PUC today. The ruling was issued in late December by a PUC administrative law judge and included one of the largest penalties ever levied by the commission against a phone company.

The ruling came after extensive hearings and stemmed from a complaint filed by a small PacBell labor union and consumer groups almost two years ago.

In its appeal, the phone company will argue that there is no proof that customers have been harmed by PacBell’s sales practices and that the decision contains many instances of “legal error.” In addition, the company said it has the right to tell customers about its products and rejects the PUC’s attempt to limit sales incentives for its employees.

After PacBell files its appeal, parties to the case will have 15 days to respond, then the full five-member commission will decide whether to hear the appeal. PacBell said it will ask for new PUC hearings on the matter.