California PUC suspends wireless reform bill

The California Public Utilities Commission on Thursday suspended the Telecommunications Consumer Bill of Rights, which the commission approved in May 2004 in an effort to make the wireless phone industry more accountable for its conduct in the face of widespread consumer complaints.

The CPUC?s 3-1 decision to suspend the reforms is the result of significant changes in the commission?s makeup during the eight months since the crackdown was initially passed, most notably the term expirations of commissioners Loretta Lynch and Carl Wood, both vocal advocates for the consumer rights bill throughout the four years of legislative debate leading to its approval.

The charge to suspend the bill was led by CPUC board member Susan Kennedy, who argued that the regulations imposed too many unreasonable burdens and restrictions on a wireless industry that is vital to the state?s economy. Both CPUC President Michael Peevey (who also voted against the bill in May 2004) and Dian Grueneich (who took her CPUC seat just this week after she was appointed by Gov. Arnold Schwarzenegger last month) sided with Kennedy on Thursday. Only CPUC member Geoffrey Brown, who drafted the rules approved last May, voted in opposition to the suspension.

Following Thursday?s CPUC vote, Kennedy promised to introduce a revised wireless consumer bill by the end of 2005.

Upon its approval last year, the Telecommunications Consumer Bill of Rights was widely viewed as the toughest statewide wireless phone regulations in the U.S. Its creation was prompted by consumer complaints alleging false advertising and confusing billing practices, which the bill attempted to combat with a provision granting dissatisfied subscribers the right to cancel their contracts without penalty within the first 30 days of service. The regulations also mandated clearer explanations of all rates, taxes and fees; listing contract terms in easy-to-read 10-point type; and more assistance for non-English speaking customers.

Thursday?s vote incurred the wrath of consumer advocacy groups. "This is vigilante style regulation," said Bob Finkelstein, executive director of The Utility Reform Network, in a statement. "There is no legal or procedural reason for today's action, only a political one."

The CPUC?s decision also generated objections from state Attorney General Bill Lockyer and all 58 of California?s district attorneys, who claim that wireless-based consumer complaints are diverting their time and energy from other law enforcement issues.