CHAPTER 64. CUSTOMER PROTECTION
UTILITIES CODE
TITLE 2. PUBLIC UTILITY REGULATORY ACT
SUBTITLE C. TELECOMMUNICATIONS UTILITIES
CHAPTER 64. CUSTOMER PROTECTION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 64.001. CUSTOMER PROTECTION POLICY. (a) The legislature
finds that new developments in telecommunications services, as
well as changes in market structure, marketing techniques, and
technology, make it essential that customers have safeguards
against fraudulent, unfair, misleading, deceptive, or
anticompetitive business practices and against businesses that do
not have the technical and financial resources to provide
adequate service.
(b) The purpose of this chapter is to establish customer
protection standards and confer on the commission authority to
adopt and enforce rules to protect customers from fraudulent,
unfair, misleading, deceptive, or anticompetitive practices.
(c) Nothing in this section shall be construed to abridge
customer rights set forth in commission rules in effect at the
time of the enactment of this chapter.
(d) This chapter does not limit the constitutional, statutory,
and common law authority of the office of the attorney general.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
Sec. 64.002. DEFINITIONS. In this chapter:
(1) "Billing agent" means any entity that submits charges to the
billing utility on behalf of itself or any provider of a product
or service.
(2) "Billing utility" means any telecommunications provider, as
defined by Section 51.002, that issues a bill directly to a
customer for any telecommunications product or service.
(3) "Certificated telecommunications utility" means a
telecommunications utility that has been granted either a
certificate of convenience and necessity, a certificate of
operating authority, or a service provider certificate of
operating authority.
(4) "Customer" means any person in whose name telephone service
is billed, including individuals, governmental units at all
levels of government, corporate entities, and any other entity
with legal capacity to be billed for telephone service.
(5) "Service provider" means any entity that offers a product or
service to a customer and that directly or indirectly charges to
or collects from a customer's bill an amount for the product or
service on a customer's bill received from a billing utility.
(6) "Telecommunications utility" has the meaning assigned by
Section 51.002.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
Sec. 64.003. CUSTOMER AWARENESS. (a) The commission shall
promote public awareness of changes in telecommunications
markets, provide customers with information necessary to make
informed choices about available options, and ensure that
customers have an adequate understanding of their rights.
(b) The commission shall compile a report on customer service at
least once each year showing the comparative customer information
from reports given to the commission it deems necessary.
(c) The commission shall adopt and enforce rules to require a
certificated telecommunications utility to give clear, uniform,
and understandable information to customers about rates, terms,
services, customer rights, and other necessary information as
determined by the commission.
(d) Customer awareness efforts by the commission shall be
conducted in English and Spanish and any other language as
necessary.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
Sec. 64.004. CUSTOMER PROTECTION STANDARDS. (a) All buyers of
telecommunications services are entitled to:
(1) protection from fraudulent, unfair, misleading, deceptive,
or anticompetitive practices, including protection from being
billed for services that were not authorized or provided;
(2) choice of a telecommunications service provider and to have
that choice honored;
(3) information in English and Spanish and any other language as
the commission deems necessary concerning rates, key terms, and
conditions;
(4) protection from discrimination on the basis of race, color,
sex, nationality, religion, marital status, income level, or
source of income and from unreasonable discrimination on the
basis of geographic location;
(5) impartial and prompt resolution of disputes with a
certificated telecommunications utility and disputes with a
telecommunications service provider related to unauthorized
charges and switching of service;
(6) privacy of customer consumption and credit information;
(7) accuracy of billing;
(8) bills presented in a clear, readable format and
easy-to-understand language;
(9) information in English and Spanish and any other language as
the commission deems necessary concerning low-income assistance
programs and deferred payment plans;
(10) all consumer protections and disclosures established by the
Fair Credit Reporting Act (15 U.S.C. Section 1681 et seq.) and
the Truth in Lending Act (15 U.S.C. Section 1601 et seq.); and
(11) programs that offer eligible low-income customers an
affordable rate package and bill payment assistance programs
designed to reduce uncollectible accounts.
(b) The commission may adopt and enforce rules as necessary or
appropriate to carry out this section, including rules for
minimum service standards for a certificated telecommunications
utility relating to customer deposits and the extension of
credit, switching fees, termination of service, an affordable
rate package, and bill payment assistance programs for low-income
customers. The commission may waive language requirements for
good cause.
(c) The commission shall request the comments of the office of
the attorney general in developing the rules that may be
necessary or appropriate to carry out this section.
(d) The commission shall coordinate its enforcement efforts
regarding the prosecution of fraudulent, misleading, deceptive,
and anticompetitive business practices with the office of the
attorney general in order to ensure consistent treatment of
specific alleged violations.
(e) Nothing in this section shall be construed to abridge
customer rights set forth in commission rules in effect at the
time of the enactment of this chapter.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
SUBCHAPTER B. CERTIFICATION, REGISTRATION, AND REPORTING
REQUIREMENTS
Sec. 64.051. ADOPTION OF RULES. (a) The commission shall adopt
rules relating to certification, registration, and reporting
requirements for a certificated telecommunications utility, all
telecommunications utilities that are not dominant carriers, and
pay telephone providers.
(b) The rules adopted under Subsection (a) shall be consistent
with and no less effective than federal law and may not require
the disclosure of highly sensitive competitive or trade secret
information.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
Sec. 64.052. SCOPE OF RULES. The commission may adopt and
enforce rules to:
(1) require certification or registration with the commission as
a condition of doing business in this state;
(2) amend certificates or registrations to reflect changed
ownership and control;
(3) establish rules for customer service and protection;
(4) suspend or revoke certificates or registrations for repeated
violations of this chapter or commission rules, except that the
commission may not revoke a certificate of convenience and
necessity of a telecommunications utility except as provided by
Section 54.008; and
(5) order disconnection of a pay telephone service provider's
pay telephones or revocation of certification or registration for
repeated violations of this chapter or commission rules.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
Sec. 64.053. REPORTS. The commission may require a
telecommunications service provider to submit reports to the
commission concerning any matter over which it has authority
under this chapter.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
SUBCHAPTER C. CUSTOMER'S RIGHT TO CHOICE
Sec. 64.101. POLICY. It is the policy of this state that all
customers be protected from the unauthorized switching of a
telecommunications service provider selected by the customer to
provide service.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
Sec. 64.102. RULES RELATING TO CHOICE. The commission shall
adopt and enforce rules that:
(1) ensure that customers are protected from deceptive practices
employed in obtaining authorizations of service and in the
verification of change orders, including negative option
marketing, sweepstakes, and contests that cause customers to
unknowingly change their telecommunications service provider;
(2) provide for clear, easily understandable identification, in
each bill sent to a customer, of all telecommunications service
providers submitting charges on the bill;
(3) ensure that every service provider submitting charges on the
bill is clearly and easily identified on the bill along with its
services, products, and charges;
(4) provide that unauthorized changes in service be remedied at
no cost to the customer within a period established by the
commission;
(5) require refunds or credits to the customer in the event of
an unauthorized change; and
(6) provide for penalties for violations of commission rules
adopted under this section, including fines and revocation of
certificates or registrations, by this action denying the
certificated telecommunications utility the right to provide
service in this state, except that the commission may not revoke
a certificate of convenience and necessity of a
telecommunications utility except as provided by Section 54.008.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
SUBCHAPTER D. PROTECTION AGAINST UNAUTHORIZED CHARGES
Sec. 64.151. REQUIREMENTS FOR SUBMITTING CHARGES. (a) A
service provider or billing agent may submit charges for a new
product or service to be billed on a customer's telephone bill on
or after the effective date of this section only if:
(1) the service provider offering the product or service has
thoroughly informed the customer of the product or service being
offered, including all associated charges, and has explicitly
informed the customer that the associated charges for the product
or service will appear on the customer's telephone bill;
(2) the customer has clearly and explicitly consented to obtain
the product or service offered and to have the associated charges
appear on the customer's telephone bill and the consent has been
verified as provided by Subsection (b); and
(3) the service provider offering the product or service and any
billing agent for the service provider:
(A) has provided the customer with a toll-free telephone number
the customer may call and an address to which the customer may
write to resolve any billing dispute and to answer questions; and
(B) has contracted with the billing utility to bill for products
and services on the billing utility's bill as provided by
Subsection (c).
(b) The customer consent required by Subsection (a)(2) must be
verified by the service provider offering the product or service
by authorization from the customer. A record of the customer
consent, including verification, must be maintained by the
service provider offering the product or service for a period of
at least 24 months immediately after the consent and verification
have been obtained. The method of obtaining customer consent and
verification must include one or more of the following:
(1) written authorization from the customer;
(2) toll-free electronic authorization placed from the telephone
number that is the subject of the product or service;
(3) oral authorization obtained by an independent third party;
or
(4) any other method of authorization approved by the commission
or the Federal Communications Commission.
(c) The contract required by Subsection (a)(3)(B) must include
the service provider's name, business address, and business
telephone number and shall be maintained by the billing utility
for as long as the billing for the products and services
continues and for the 24 months immediately following the
permanent discontinuation of the billing.
(d) A service provider offering a product or service to be
charged on a customer's telephone bill and any billing agent for
the service provider may not use any fraudulent, unfair,
misleading, deceptive, or anticompetitive marketing practice to
obtain customers, including the use of negative option marketing,
sweepstakes, and contests.
(e) Unless verification is required by federal law or rules
implementing federal law, Subsection (b) does not apply to
customer-initiated transactions with a certificated
telecommunications provider for which the service provider has
the appropriate documentation.
(f) If a service provider is notified by a billing utility that
a customer has reported to the billing utility that a charge made
by the service provider is unauthorized, the service provider
shall cease to charge the customer for the unauthorized product
or service.
(g) This section does not apply to message telecommunications
services charges that are initiated by dialing 1+, 0+, 0-,
1010XXX, or collect calls and charges for video services if the
service provider has the necessary call detail record to
establish the billing for the call or service.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
Sec. 64.152. RESPONSIBILITIES OF BILLING UTILITY. (a) If a
customer's telephone bill is charged for any product or service
without proper customer consent or verification, the billing
utility, on its knowledge or notification of any unauthorized
charge, shall promptly, not later than 45 days after the date of
knowledge or notification of the charge:
(1) notify the service provider to cease charging the customer
for the unauthorized product or service;
(2) remove any unauthorized charge from the customer's bill;
(3) refund or credit to the customer all money that has been
paid by the customer for any unauthorized charge, and if the
unauthorized charge is not adjusted within three billing cycles,
shall pay interest on the amount of the unauthorized charge;
(4) on the customer's request, provide the customer with all
billing records under its control related to any unauthorized
charge within 15 business days after the date of the removal of
the unauthorized charge from the customer's bill; and
(5) maintain for at least 24 months a record of every customer
who has experienced any unauthorized charge for a product or
service on the customer's telephone bill and who has notified the
billing utility of the unauthorized charge.
(b) A record required by Subsection (a)(5) shall contain for
each unauthorized charge:
(1) the name of the service provider that offered the product or
service;
(2) any affected telephone numbers or addresses;
(3) the date the customer requested that the billing utility
remove the unauthorized charge;
(4) the date the unauthorized charge was removed from the
customer's telephone bill; and
(5) the date any money that the customer paid for the
unauthorized charges was refunded or credited to the customer.
(c) A billing utility may not:
(1) disconnect or terminate telecommunications service to any
customer for nonpayment of an unauthorized charge; or
(2) file an unfavorable credit report against a customer who has
not paid charges the customer has alleged were unauthorized
unless the dispute regarding the unauthorized charge is
ultimately resolved against the customer, except that the
customer shall remain obligated to pay any charges that are not
in dispute, and this subsection does not apply to those
undisputed charges.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
Sec. 64.153. RECORDS OF DISPUTED CHARGES. (a) Every service
provider shall maintain a record of every disputed charge for a
product or service placed on a customer's bill.
(b) The record required under Subsection (a) shall contain for
every disputed charge:
(1) any affected telephone numbers or addresses;
(2) the date the customer requested that the billing utility
remove the unauthorized charge;
(3) the date the unauthorized charge was removed from the
customer's telephone bill; and
(4) the date action was taken to refund or credit to the
customer any money that the customer paid for the unauthorized
charges.
(c) The record required by Subsection (a) shall be maintained
for at least 24 months following the completion of all steps
required by Section 64.152(a).
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
Sec. 64.154. NOTICE. (a) A billing utility shall provide
notice of a customer's rights under this section in the manner
prescribed by the commission.
(b) Notice of a customer's rights must be provided by mail to
each residential and retail business customer within 60 days of
the effective date of this section or by inclusion in the
publication of the telephone directory next following the
effective date of this section. In addition, each billing utility
shall send the notice to new customers at the time service is
initiated or to any customer at that customer's request.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
Sec. 64.155. PROVIDING COPY OF RECORDS. A billing utility shall
provide a copy of records maintained under Sections 64.151(c),
64.152, and 64.154 to the commission staff on request. A service
provider shall provide a copy of records maintained under
Sections 64.151(b) and 64.153 to the commission on request.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
Sec. 64.156. VIOLATIONS. (a) If the commission finds that a
billing utility violated this subchapter, the commission may
implement penalties and other enforcement actions under Chapter
15.
(b) If the commission finds that any other service provider or
billing agent subject to this subchapter has violated this
subchapter or has knowingly provided false information to the
commission on matters subject to this subchapter, the commission
may enforce the provisions of Chapter 15 against the service
provider or billing agent as if it were regulated by the
commission.
(c) Neither the authority granted under this section nor any
other provision of this subchapter shall be construed to grant
the commission jurisdiction to regulate service providers or
billing agents who are not otherwise subject to commission
regulation, other than as specifically provided by this chapter.
(d) If the commission finds that a billing utility or service
provider repeatedly violates this subchapter, the commission may,
if the action is consistent with the public interest, suspend,
restrict, or revoke the registration or certificate of the
telecommunications service provider, by this action denying the
telecommunications service provider the right to provide service
in this state, except that the commission may not revoke a
certificate of convenience and necessity of a telecommunications
utility except as provided by Section 54.008.
(e) If the commission finds that a service provider or billing
agent has repeatedly violated any provision of this subchapter,
the commission may order the billing utility to terminate billing
and collection services for that service provider or billing
agent.
(f) Nothing in this subchapter shall be construed to preclude a
billing utility from taking action on its own to terminate or
restrict its billing and collection services.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
Sec. 64.157. DISPUTES. (a) The commission may resolve disputes
between a retail customer and a billing utility, service
provider, or telecommunications utility.
(b) In exercising its authority under Subsection (a), the
commission may:
(1) order a billing utility or service provider to produce
information or records;
(2) require that all contracts, bills, and other communications
from a billing utility or service provider display a working
toll-free telephone number that customers may call with
complaints and inquiries;
(3) require a billing utility or service provider to refund or
credit overcharges or unauthorized charges with interest if the
billing utility or service provider has failed to comply with
commission rules or a contract with the customer;
(4) order appropriate relief to ensure that a customer's choice
of a telecommunications service provider is honored;
(5) require the continuation of service to a residential or
small commercial customer while a dispute is pending regarding
charges the customer has alleged were unauthorized; and
(6) investigate an alleged violation.
(c) The commission shall adopt procedures for the resolution of
disputes in a timely manner, which in no event shall exceed 60
days.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
Sec. 64.158. CONSISTENCY WITH FEDERAL LAW. Rules adopted by the
commission under this subchapter shall be consistent with and not
more burdensome than applicable federal laws and rules.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 55, eff. Sept. 1,
1999.
SUBCHAPTER E. PUBLICATION OF MOBILE SERVICE CUSTOMER TELEPHONE
NUMBERS
Sec. 64.201. DEFINITION. In this subchapter, "commercial mobile
service provider" means a provider of commercial mobile service
as defined by Section 332(d), Communications Act of 1934 (47
U.S.C. Section 151 et seq.), Federal Communications Commission
rules, and the Omnibus Budget Reconciliation Act of 1993 (Pub. L.
No. 103-66).
Added by Acts 2005, 79th Leg., Ch.
226, Sec. 1, eff. September 1, 2005.
Sec. 64.202. CONSENT REQUIRED. (a) A commercial mobile service
provider doing business in this state may not publish in a
directory or provide for publication in a directory the name and
telephone number of a mobile service customer in this state
without the express consent of the customer. The consent of a
customer must be given:
(1) in writing on a separate document that includes the
customer's signature and the date;
(2) verbally; or
(3) on a website maintained by the commercial mobile service
provider.
(b) Before a customer consents under Subsection (a), a
commercial mobile service provider must disclose to the customer
in writing or verbally, as appropriate, that:
(1) by consenting the customer agrees to have the customer's
telephone number sold or licensed as part of a list of customers
and the customer's telephone number may be included in a publicly
available directory; and
(2) if the customer's calling plan bills the customer for
unsolicited calls or text messages from a telemarketer, by
consenting to have the customer's telephone number sold or
licensed as part of a list of customers or be included in a
publicly available directory, the customer may incur additional
charges for receiving unsolicited calls or text messages.
(c) A customer who consents under Subsection (a) may revoke that
consent at any time. A commercial mobile service provider shall
comply with the customer's request not later than the 60th day
after the date the request is made.
(d) A commercial mobile service provider may not bill a mobile
services customer for not consenting under Subsection (a).
Added by Acts 2005, 79th Leg., Ch.
226, Sec. 1, eff. September 1, 2005.
Sec. 64.203. VIOLATIONS. (a) The attorney general may
investigate violations of this subchapter and file civil
enforcement actions seeking injunctive relief, attorney's fees,
and civil penalties in an amount not to exceed $1,000 for each
violation. If the court finds the defendant wilfully or
knowingly violated this subchapter, the court may increase the
amount of the civil penalties to an amount not to exceed $3,000
for each violation.
(b) Chapter 15 does not apply to a violation of this subchapter.
Added by Acts 2005, 79th Leg., Ch.
226, Sec. 1, eff. September 1, 2005.