Plan Would Give Telecom Users 30 Days to Cancel

Telecommunications companies would have to disclose more information to California customers and give them at least 30 days to change their minds after signing up for services under a “Consumer Bill of Rights” proposed Thursday.

The proposal by Commissioner Carl Wood of the state Public Utilities Commission, which has been in the works for more than three years, aims to protect against misleading and confusing offers from local, long-distance and wireless phone companies. It also would guard against unilateral changes in services that would increase prices or restrictions.

Wood released a preliminary version in June 2002, then spent a year adjusting the proposal to reflect the concerns of telecom companies, consumer advocates and law enforcement officials. In particular, he put more emphasis on disclosure instead of regulatory mandates.

The latest version drew praise from consumer activists but a sharp critique from wireless phone companies, which argued that it could raise prices and curtail services.

Wood predicted the full commission would approve it. “It’s a huge advance on what we have today. It’s a huge advance on what exists anywhere in the country,” he said.

A scheduled Sept. 18 vote could be delayed if other PUC members offer alternatives.

The new proposal drops a requirement that phone companies obtain a customer’s signature before starting a service, replacing it with a requirement that companies give customers 30 to 45 days to cancel a new service without penalty. Wood also dropped a requirement that bills and other follow-up communications be in the same language used to sell a service, saying the issue needs more study.

California spokesmen for SBC Communications Inc. and Verizon Communications Inc. praised elements of the current proposal, although they said they were still reviewing it. But the Cellular Telecommunications and Internet Assn. and the California Chamber of Commerce said the proposal was unnecessary regulation.

State Sen. Debra Bowen (D-Marina del Rey), chairwoman of the Energy, Utilities & Communications Committee, said she would push the legislature to take up the issue if the PUC doesn’t follow through.