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HomeMy WebLinkAbout1992-10-30 New York State Commission on Cable Television In the Matter of 92-467 Amendment to Consumer Service Rules and Regulations Docket No#90379-ANEW YORK STATE COMMISSION ON CABLE TELEVISION • IS 6 ,,99Z \\ In the Matter of --`" 92-467 Amendment to Consumer Service Rules and Regulations ) DOCKET NO. 90379-A NOTICE OF PROPOSED RULEMAKING (Released: October 30, 1992) PLEASE TAKE NOTICE that the Commission proposes to amend Sections 590.62, 590.63, 590.66, 590.73 and 596.8 of its rules. The statutory authority for the proposed rules is contained in Sections 811, 815 and 816 of Article 28 of the Executive Law. A copy of the proposed rule is attached hereto. The Commission first promulgated rules governing subscriber complaint procedures effective April, 1973. In subsequent proceedings, the Commission promulgated rules relating to such matters as billing practices, late payment and collection charges, disconnection and reconnection procedures, service outages and service calls. These rules are reviewed periodically by the Commission. The rules proposed herein reflect the Commission's present determination of the need for improvement in existing consumer protection rules. For many years, Commission staff has been empowered to assist subscribers in resolving complaints with their cable television companies. In recent years, the Commission has had a toll-free consumer assistance telephone number available to subscribers. In 1990, the Commission amended Section 590.63(a)(1) of its rules to require that its toll-free telephone number appear on each subscriber bill. It was the intent of the Commission that subscribers would have readily available to them the Commission's number in the event that complaints registered with the cable company were not responded to, or resolved to the subscriber's satisfaction, in a timely manner. Since the Commission's toll- free number has been on subscriber bills, staff has experienced a substantial increase in the number of calls received from subscribers. These calls have better enabled staff to monitor the customer service policies of cable television companies. However, staff has found that many subscribers are calling the Commission about specific complaints without first having attempted to contact their cable television company. Since the Commission's staff is limited and many complaints may be routinely resolved without staff intervention, it has been the longstanding policy to encourage subscribers to make specific complaints to the cable company first. Accordingly, we are proposing at this time, an amendment to Section 590.63(a)(1) that would require cable companies to add to each bill language indicating that the Commission's toll-free number is available for "unresolved inquiries." It is our hope that Tower Building • Empire State Plaza • Albany, NY 12223 2 this will encourage subscribers to make initial calls concerning specific matters related to their billing or their service to their cable television company. In addition, we note that in a few instances information required by existing Section 590.63(a)(1) has been placed on the reverse side of the customer's bill or on the portion of the bill that is returned with the payment. Obviously, it is important for the subscriber to have the name and telephone number of the company and the Commission's toll-free number available when needed. We are, therefore, proposing to amend the rule to require that the information be placed on the front side of the portion of the bill retained by the subscriber. Section 590.63(a)(2) requires a cable company to itemize "each category of service and piece of equipment for which a charge is imposed." The purpose of this section is to enable subscribers to know, on a monthly basis, the precise services for which individual charges are imposed and the amount of such charges, in order that they may better understand the total bill. It has been brought to our attention that some subscribers continue to be unable to detertnine the specific charges for such matters as additional outlets or equipment. In order to address this concern, we propose to amend Section 590.63(a)(2) to require each subscriber bill to "include the total charge for service at each outlet in the subscriber's home, and itemize the separate charges, if any, for each tier or category of programming and for each piece of equipment provided at each outlet;...." Section 590.63(d) contains limitations on the imposition of late charges. We are proposing at this time an amendment to this section which would place a ceiling on late charges at 1-1/2% per month of the unpaid balance of any bill. Our experience has been that some cable companies have been imposing fixed late charges in the range of $3.00 to $5.00 per month which, in our judgment, constitutes an unwarranted percentage of the total bill due. Section 590.66(a) requires a cable company to give a credit to subscribers for every service outage in excess of four continuous hours commencing when the company first becomes aware of such outage. Subparagraph (b) provides that the cable company shall be responsible for issuing a credit whenever it may reasonably determine the existence and scope of any service outage. Subparagraph (c) provides that a subscriber may apply for such credit in other cases within ninety days of the outage. Cable television companies have frequently argued that they are not able to determine the precise scope of every outage. They further contend that they should not be required uniformly to give a full day's credit to every subscriber for every outage, particularly where an outage occurs during hours when viewing is sparse. In response to these interests, we are herein proposing to modify subparagraphs (b) and (c) to limit the circumstances under which a cable company must automatically issue a credit without a request therefor. Specifically, a cable company would be so required only if some portion of a continuous four hour service outage occurs between the hours of 6:00 p.m. and 3 midnight. This limitation does not alter the obligation of a cable company to provide credit for other outages of similar scope where a subscriber makes a request therefor. Section 596.8(c) requires a cable company to provide subscribers with the opportunity to schedule a service call during a specific day part, e.g., morning, afternoon or evening or Saturday if available. The rule also prohibits the imposition of any charge for a service call that is not timely made. The rule was adopted in response to the frustration expressed by many subscribers who were forced to devote an entire day to a service call only to have the technician arrive very early or very late in the day, or not at all. We believe that the rule has contributed significantly to the options available to subscribers and, particularly, to the convenience of working subscribers. Nonetheless, we continue to receive complaints that service calls are not made within the appointed timeframe. We are proposing, as an additional incentive to cable companies, an amendment to the rule which would require the company to credit a subscriber with one month's service if a scheduled appointment is not timely fulfilled. The prohibition on charges for late service calls would continue. The proposed amendment also recognizes an opportunity for a company to reschedule a service call with the consent of a subscriber if such consent is obtained on at least the day before the day of the scheduled appointment. Section 590.73 of the Commission's rules pertains to the liability of a subscriber for a converter which is lost, stolen or damaged while in the subscriber's possession. The rule recognizes the authority of cable companies to impose charges for converters which are lost, stolen or damaged in certain circumstances but requires notice to subscribers of the opportunity to refer the matter to the Commission if the subscriber believes there are extenuating circumstances. The rule also now provides that in the event a subscriber does choose to refer the matter to the Commission, the company may not pursue collection for thirty days. It has been the position of many companies that this rule has impaired their ability to pursue recovery of, or compensation for, converters that have not been returned by subscribers who are terminating service and moving to new locations. In recognition of this concern, we are proposing to amend the rule by deleting the language that would prohibit companies from collecting charges during the pendency of our review, unless otherwise directed by Commission staff pursuant to Section 590.5(c)(3) of the Commission's rules. The Commission invites comments from interested parties on the proposed rule. Initial comments in this proceeding should be submitted no later than January 4, 1993. Comments in reply to initial comments should be submitted no later January 18, 1993. All written comments should be submitted to William Huff, Administrative Officer, NYS Commission on Cable Television, Empire State Plaza, Corning Tower, 21st Floor, Albany, New York 12223. 4 THE COMMISSION ORDERS: That the proposed rule, regulatory impact statement and regulatory flexibility analysis be submitted to the Secretary of State for publication and to other appropriate officials in accord with the State Administrative Procedure Act and the Executive Law. Commissioners Participating: William B. Finneran, Chairman; Theodore E. Mulford, John A. Passidomo, Commissioners. TEXT OF PROPOSED RULE 590.62 Notification of billing practices. (a) Every cable television company shall notify each of its subscribers, in a separate written notice, of its billing practices and payment requirements including the use of payment coupons. The notice shall describe or define, at a minimum, billing procedures (including payment requirements to avoid discontinuance of service, e.g., payment due dates), late charges, downgrade charges, advance billing options, if any, procedures to be followed in billing disputes and credit to be given for service outages. • (b) Notice shall be given as follows: (1) to new subscribers, at the time of initial installation; (2) to all subscribers, whenever there is a change in the company's billing practices or payment requirements; (3) to all subscribers at least [semiannually] annually. (c) Every cable television company: (1) shall file copies of its billing practices and payment requirements with the commission; and (2) shall maintain on file in its local office for public inspection for a period of two years copies of its billing practices and payment requirements and all advertisements, lists or other notifications regarding programming sent to or made available to the public. For purposes of this subdivision advertisements, lists or other notifications shall mean any commercial messages which a cable television company originates and causes to be disseminated to the public or its subscribers by means of radio, television or print, or pursuant to a printed directive, which relate to the service tiers, networks or programming offered by said company to its subscribers and the rates and charges therefor, except that such terms shall not include any commercial message concerning a network or programming which originates with the network or programmer independent of the cable television company. 590.63 Bill format, late charges, collection charges and downgrade charges. (a) Each subscriber bill shall: (1) include on the front portion of the bill to be retained by the subscriber (i) the name, address, and telephone number of the company and (ii) the toll-free subscriber assistance telephone number of the commission identified as: "Unresolved Inquiries NYS Commission on Cable Television 1-800-342-3330"; piece (2) [shall itemize each category of service and of equipment for which a charge is imposed] include the total charge for service at each outlet in the subscriber's home and, itemize the separate charges, if any, for each tier or category of programming and for each piece of equipment provided at each outlet; (3) state the billing period, amount of current billing and appropriate credits or past due balances, if any. (b) Each subscriber bill shall specify a minimum time for payment which shall not be less than 15 days from mailing of the bill. (c) 3 Any late charge permitted by law or by the franchise, if imposed upon the subscriber, shall be itemized on the subscriber's bill, or notice of delinquent payment in cases where coupon books are used. (d) If a late charge is to be imposed, it shall not be imposed sooner than 45 days after the mailing of the bill to the subscriber or the due date, if coupons are used. Said late charge shall not be in excess of 1-1/2 percent per month of the unpaid balance of any subscriber bill. .(e) No cable television company shall impose a collection. charge upon any subscriber, except as prescribed in section 590.67(e) of this Part. (f) A cable television company may impose a downgrade charge upon the conditions and in the circumstances as follows: (1) subscribers have been notified of such charge in writing in at least 10 -point type; (2) the charge does not exceed the cost of the downgrade to the company; (3) the downgrade is from a level of service which the subscriber has not maintained continuously for six months immediately preceding the date of the downgrade; and (4) the downgrade was not requested by a subscriber affected by a significant programming change or a network change within 45 days of receipt by the subscriber of the notice required by section 590.74(b)(4) and (c)(4) of this Part. 590.66 Credit for service outage. (a) Every cable television company shall give credit, for every service outage in excess of 4 four continuous hours. The four-hour period shall commence at the time the cable television company first becomes aware of the outage. (b) Whenever a cable television company may reasonably determine the existence and scope of a service outage, as, for example, a service outage caused by a major failure in the system's headend or distribution electronic equipment, which service outage exceeds four continuous hours[,].and some part of which occurs during the hours 6:00 p.m. to 12:00 a.m., the cable television company shall issue a.credit to each affected subscriber. (c) In the event a cable television company cannot determine all subscribers affected by a service outage in excess of four continuous hours[,] or no part of such outage occurs during the hours 6:00 p.m. to 12:00 a.m., credit shall be given to any eligible subscriber who. makes application therefor by either written or oral notice within 90 days of the outage. (d) The minimum credit shall be .equal to one thirtieth times the applicable monthly charge for each twenty-four hour period during which -a service outage continues for at least four hours. (e) A cable television company shall be responsible for every service outage and shall provide credit to each affected subscriber who is entitled thereto pursuant to subdivisions (b)and (c) of this section. (f) Prior written notice of a scheduled service outage [due to system upgrade or rebuild] shall be filed with the commission and the affected municipality. Every cable television company shall make a reasonable effort to inform subscribers [in writing or electronically], in advance, of any scheduled service outage[s] [for equipment repair or replacement, system upgrade or rebuild or on-going technical "sweeps" of the system]. 590.73 Auxiliary equipment. When a cable television company supplies auxiliary equipment such as a converter or other modifying device to a subscriber the company can expect reasonable care of such equipment by the subscriber. A cable operator shall notify the subscriber and the commission in writing of any charges to subscribers for lost, stolen or damaged converters. In the event such equipment is lost, stolen or damaged, and the cable. television company seeks to charge the subscriber for such equipment, the company shall give written, dated notice to the subscriber of the amount sought and the subscriber's opportunity to refer the matter to the commission in accordance with the provisions of section 590.5 of this subtitle. [If referral is not made to the commission within 30 days of the date of the notice, the company may commence its collection procedures.] 596.8 Trouble calling processing[.] and other service calls. (a) A telephone number shall be made available to which subscribers may direct trouble calls. In the event that the trouble calls must be made outside the subscriber's local dialing area, the calls must be toll free. (b) Investigative action shall be initiated on the same day a trouble call is received at the local office, if possible, but in no case later than the following business day. (c) Whenever a service call to the subscriber's premises is required, the company shall advise such subscriber of the - opportunity to schedule the service call for the morning or afternoon hours (or evenings or Saturdays, if available) and shall schedule such service call in accordance with the subscriber's request. If, for any reason, the service call is not made within the scheduled time frame, the company shall credit to the subscribers's account an amount equal to one month's service and the subscriber shall not be charged for such service call including any installation or reconnection made as a result thereof[.] unless the service call is rescheduled with the subscriber's consent given on or before the day on which the call was previously scheduled. (d) A report on each trouble call in which a cable system fault reported by a single subscriber was identified shall be filed at the local office, and shall include the following data: (1) subscriber identification; (2) ',date and approximate time complaint was received; (3) date and approximate time of response; (4) nature of complaint; (5) brief description of the fault; (6) signal level measured on each active class I channel after corrective action, where appropriate; (7) (8) (9) corrective steps taken (if any required); date case is closed; and identification of technician or repairperson. (e) A report on each system fault, or on any failure reported by more than one subscriber and affecting an area, shall be filed at the local office and shall include the following data: (1) brief description of the area affected sufficient to allow the later determination of the number of subscribers affected; (2) date and approximate time of failure; (3) cause of failure; and (4) date and time service is restored. (f) A report for each trouble call in which no trouble was identified, or in which further instruction was required to enable the subscriber properly to adjust the terminal receiving equipment, or in which the fault was in the subscriber's receiving equipment, shall be filed at the local office and shall include: (1) subscriber identification; (2) date and time complaint was received; (3) date and time of response; (4) nature of complaint; (5) corrective steps taken (if any required); and (6) identification of technician or repairperson. report required to be maintained pursuant to this section kept by the operator for a period of two years from the (g) • Any shall be event to which it relates.