CHAPTER 64. CUSTOMER PROTECTION

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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.

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.

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.

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;

(4) any other method of authorization approved by the commission

or the Federal Communications Commission.

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.

(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.

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.

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.

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.

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.

State Codes and Statutes

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