44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO TELECOMMUNICATIONS; ENACTING A NEW SECTION OF THE UNFAIR PRACTICES ACT TO PROHIBIT UNAUTHORIZED CHANGES IN A CUSTOMER'S TELEPHONE SERVICE PROVIDER OR UNAUTHORIZED ADDITIONS TO A CUSTOMER'S BILL; IMPOSING FINES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. A new section of the Unfair Practices Act is enacted to read:

"[NEW MATERIAL] UNAUTHORIZED CHANGES IN TELEPHONE SERVICE PROVIDER, TELEPHONE SERVICE OR PRODUCTS PROHIBITED.--

A. It is an unlawful practice within the meaning of the Unfair Practices Act for any person to:

(1) change, direct another person to change or participate in processing a change in a customer's telecommunications service provider without the customer's authorization; or

(2) charge, direct another person to charge or participate in processing a charge for any product or service through a customer's telephone bill without the customer's authorization.

B. As used in this section:

(1) "authorization" means:

(a) a letter of agency separate from any sales or solicitation material and that contains, in clear and conspicuous language, a full and complete description of the change in telecommunications service provider, and any product or service to be charged to the customer's telephone bill. The letter of agency shall contain, in clear and conspicuous language, a full and complete description of the rates, fees and charges associated with the new telecommunications service provider, and the product and service to be charged to the customer's telephone bill. The letter of agency shall be signed by the customer before any change may be made in a customer's telecommunications service provider or any charge for any product or service may be placed on a customer's telephone bill; or

(b) an audio recording of the customer's clear and unambiguous agreement to the change in telecommunications service provider, or to charges for a product or service on the customer's telephone bill. The audio recording shall be complete, audible and uninterrupted and shall include all sales and solicitations statements made to the customer. The audio recording shall also include the customer's clear and unambiguous disclosure of his identity and authority to make a change or incur the charges on a particular telephone billing account;

(2) "customer" means the person liable for payment of the telephone bill, as set out in the telephone bill account records;

(3) "telecommunications service" means the offering for sale of the conveyance of voice, data or other information at any frequency over any part of the electromagnetic spectrum. "Telecommunications service" does not include cable television service or broadcast service; and

(4) "telecommunications service provider" means a person that provides telecommunications service.

C. Any customer authorization that does not comply with the requirements of this section shall be void and without effect.

D. No person shall use any sweepstakes, contest or drawing of any kind to obtain a customer's authorization to change a customer's telecommunications service provider or to charge for any product or service through a customer's telephone bill.

E. Any person who violates this section shall be liable to the customer's previously selected telecommunications service provider in an amount equal to all charges paid by a customer after each violation, in addition to any other right, remedy or penalty available against the violator pursuant to the Unfair Practices Act or any other local, state or federal law."