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Utah Code
Title 54
Public Utilities
Chapter 8b
Public Telecommunications Law
Section 18
Definitions -- Unauthorized change of telecommunications provider -- Unauthorized charges -- Procedures for verification -- Penalties -- Authority of commission.
     54-8b-18.   Definitions -- Unauthorized change of telecommunications provider -- Unauthorized charges -- Procedures for verification -- Penalties -- Authority of commission.
     (1) For purposes of this section:
     (a) "Agents" includes any person, firm, or corporation representing a telecommunications corporation for purposes of requesting a change in a subscriber's telecommunications provider, but does not include a local service provider when executing a request submitted by another service provider or its agents.
     (b) "Freeze" means a directive from a subscriber to retain the provider of public telecommunications services selected by the subscriber until the subscriber provides authorization for a change to another provider of public telecommunications services through any means by which a freeze is implemented.
     (c) "Small commercial subscriber" is a person or entity conducting a business, agriculture, or other enterprise in the state having less than five telecommunications lines.
     (d) "Subscriber" means a corporation, person, or government, or a person acting legally on behalf of a corporation, person, or government who has purchased public telecommunications services from a telecommunications corporation.
     (2) No telecommunications corporation or its agents shall make any change or authorize a different telecommunications corporation to make any change in the provider of any public telecommunications service to a subscriber unless it complies, at a minimum, with Subsections (2)(a) through (e). This Subsection (2) does not apply to a telecommunications corporation that effectuates a change in service provider pursuant to a change authorization submitted or requested by another telecommunications corporation.
     (a) The telecommunications corporation or its agents shall, at a minimum, inform the subscriber of the nature, extent, and rates of the service being offered and any charges associated with the change.
     (b) Notwithstanding Section 13-26-4, changes in provider of telecommunication service accomplished through telephone solicitation shall comply with the Telephone Fraud Prevention Act, Sections 13-26-2, 13-26-8, 13-26-10, and 13-26-11.
     (c) For sales of residential service or small commercial subscriber service, the telecommunications corporation or its agents shall confirm that the subscriber is aware of any charges that the subscriber must pay associated with the change and that the subscriber authorizes the change of provider. The subscriber's authorization to change the provider shall be confirmed by any one of the following methods:
     (i) obtaining the subscriber's written authorization;
     (ii) having the subscriber's oral authorization verified by an independent third party; or
     (iii) any means provided by rule of the Federal Communications Commission or the commission.
     (d) If the subscriber is not an individual, an authorization shall be valid only if given by an authorized representative of the subscriber.
     (e) (i) The written authorization to change the provider shall be signed by the subscriber and shall contain a clear, conspicuous, and unequivocal request by the subscriber for a change of telecommunications provider.
     (ii) A written authorization is not valid if it is presented to the subscriber for signature in connection with a sweepstakes, game of chance, or any other means prohibited by commission

rule.
     (iii) Nothing in this section shall be construed to prohibit any person from offering a premium, incentive, or a thing of value to another as consideration for authorizing a change of telecommunications service provider, provided that no element of chance or skill is associated with the offer of the premium, incentive, or thing of value or its receipt.
     (3) The confirmation by a third-party verifier shall, at a minimum:
     (a) confirm the subscriber's identity with information unique to the customer, unless the customer refuses to provide identifying information, then that fact shall be noted;
     (b) confirm that the subscriber agrees to the requested change in telecommunications service providers; and
     (c) confirm that the subscriber has the authority to select the provider as the provider of that service.
     (4) A third-party verifier shall meet each of the following criteria:
     (a) any criteria for third-party verifiers set by the Federal Communications Commission;
     (b) not be directly or indirectly managed, controlled, directed, or owned wholly or in part:
     (i) by the telecommunications corporation or its agents that seek to provide the telecommunications service or by any corporation, firm, or person who directly or indirectly manages, controls, directs, or owns more than 5% of the telecommunications corporation; or
     (ii) by the marketing entity that seeks to market the telecommunications service or by any corporation, firm, or person who directly or indirectly manages, controls, directs, or owns more than 5% of the marketing entity;
     (c) operate from facilities physically separated from:
     (i) those of the telecommunications corporation or its agents that seek to provide the subscriber's telecommunications service; or
     (ii) those of the marketing entity that seeks to market a telecommunications service to the subscriber; and
     (d) not derive commissions or compensation based upon the number of change authorizations verified.
     (5) A telecommunications corporation or its agents seeking to verify the change authorization shall connect the subscriber to the third-party verifier or arrange for the third-party verifier to call the subscriber to verify the change authorization.
     (6) A third-party verifier that obtains the subscriber's oral verification regarding the change shall record that verification by obtaining appropriate verification data.
     (7) (a) The record verifying a subscriber's change of provider shall be available to the subscriber upon request.
     (b) Information obtained from the subscriber through verification may not be used for any other purpose.
     (c) Any intentional unauthorized release of the information in Subsection (7)(b) is grounds for penalties or other action by the commission or remedies provided by law to the aggrieved subscriber against the telecommunications corporation, third-party verifier, their agents, or their employees who are responsible for the violation.
     (8) The third-party verification shall occur in the same language as that in which the change was solicited.
     (9) The verification requirements described in this section shall apply to all changes in the provider of any public telecommunications service.

     (10) The commission may promulgate rules:
     (a) necessary to implement this section;
     (b) consistent with any rules promulgated by the Federal Communications Commission; and
     (c) in a nondiscriminatory and competitively neutral manner.
     (11) (a) Each subscriber may elect to require the telecommunications corporation providing the subscriber's local exchange service to implement a freeze until the subscriber provides authorization for a change to another provider of public telecommunications services.
     (b) Once a subscriber has elected the freeze option under Subsection (11)(a), the telecommunications corporation providing the subscriber's local exchange service may not process a request to change the subscriber to another provider of telecommunications services without prior authorization directly from the subscriber.
     (12) (a) Whenever the subscriber's provider of a telecommunications service changes, the new provider shall:
     (i) retain a record of the verified change authorization consistent with requirements of the Federal Communications Commission or rules issued by the commission; and
     (ii) be responsible for providing a conspicuous notice of the change within 30 days of the effective date of the change of service.
     (b) At a minimum, the notice in Subsection (12)(a)(ii) shall identify the new provider, contain a general description of the service and price, and provide information necessary for the subscriber to have questions answered or to rescind the change.
     (13) Any bill shall identify each telecommunications service provider of telecommunication service for which billing is rendered.
     (14) (a) Any person or provider of telecommunications service inadvertently or knowingly designating or changing the subscriber's telecommunications service provider in violation of this section shall refund to the subscriber any amounts required by the rules of the Federal Communications Commission and the commission.
     (b) The unauthorized provider in Subsection (14)(a) additionally shall:
     (i) bear all costs of restoring the customer to the service of the subscriber's original service provider; and
     (ii) pay to any other telecommunications provider any fees set by the commission for the designation or change.
     (15) Proceedings for violations of this section may be commenced by request for agency action filed with the commission by a subscriber, a telecommunications corporation, the Division of Public Utilities, or by the commission on its own motion.
     (16) Any telecommunications corporation, its agents, or a third-party verifier who violates this section or rules adopted to implement this section shall be subject to the provisions of Sections 54-7-23 through 54-7-29.
     (17) The commission is granted authority to enforce provisions relating to an unauthorized telecommunication service provider change in interstate and intrastate telecommunication service involving telecommunications corporations operating in the state.

Enacted by Chapter 113, 1999 General Session
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