SF 833

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to telecommunications; enacting the Minnesota Wireless Telephone
Consumer Protection Act; changing certain existing requirements; proposing
coding for new law in Minnesota Statutes, chapter 325F; repealing Minnesota
Statutes 2006, section 325F.695.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325F.696] MINNESOTA WIRELESS TELEPHONE CONSUMER
PROTECTION ACT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this
section.
new text end

new text begin (b) "Government-mandated charges and taxes" means any taxes, fees, and other
charges that a wireless carrier is legally required to collect directly from consumers and
to remit to federal, state, or local governments, or to third parties authorized by such
governments, for the administration of government programs. "Government-mandated
charges and taxes" does not include discretionary charges authorized, but not required by,
government action.
new text end

new text begin (c) "Wireless carrier" means a provider of wireless telecommunications service.
new text end

new text begin (d) "Wireless telecommunications service" means commercial mobile radio service
as defined in Code of Federal Regulations, title 47, part 20.
new text end

new text begin Subd. 2. new text end

new text begin Required disclosures. new text end

new text begin (a) Wireless carriers providing wireless
telecommunications service in the state must:
new text end

new text begin (1) provide the customer, at the time of sale, with a coverage map that accurately
depicts the area where service is provided and that identifies areas where any domestic
roaming or additional charges would apply to the customer's service;
new text end

new text begin (2) make accurate coverage maps available to prospective and existing customers at
any location where the wireless carrier's wireless telecommunications service is offered
for sale and make those maps available electronically at the carrier's Web site;
new text end

new text begin (3) clearly and conspicuously disclose at the time of sale the price for the service
being purchased by the customer, including the monthly access fee or base charge,
the amount of any activation or initiation fee, any charges for domestic roaming, any
charge for domestic long distance, any charge for exceeding the number of minutes
or usage included in any allowance, and any other charges collected and retained by
the carrier and disclose a good faith estimate of the amount or range of all applicable
government-mandated or authorized charges and taxes;
new text end

new text begin (4) clearly and conspicuously disclose to the customer at the time of sale, in at least
12-point font in written materials: (i) that the price is not guaranteed to remain the same
for the minimum term of the contract if a contract provision allows the wireless carrier to
change the price of the service during the minimum term, and (ii) any early termination
fee that applies if service is terminated during the minimum term; and
new text end

new text begin (5) prior to the execution of a contract for wireless telephone service, provide
the customer the terms of the contract, and after execution of the contract provide the
customer with a copy of the writing or writings constituting the contract, at the time of
sale and thereafter upon the customer's request.
new text end

new text begin (b) With regard to any early termination fee provisions or provisions allowing the
wireless carrier to change the price of the service during the minimum contract term,
the wireless carrier must obtain a specific acknowledgment from the customer that the
customer has read and understands the provisions.
new text end

new text begin Subd. 3. new text end

new text begin Billing; listing of government taxes and fees. new text end

new text begin All bills for wireless
telecommunications services must list government-mandated charges and taxes in a
section of the bill separate from the section or sections listing the price and any other
charges for the wireless telecommunications service. The wireless carrier must include
a brief, easy-to-understand description of each charge included in the bill. The wireless
carrier must not represent, expressly or by implication, that discretionary cost recovery
fees or charges are government-mandated charges and taxes.
new text end

new text begin Subd. 4. new text end

new text begin Billing for third-party goods and services. new text end

new text begin (a) A wireless carrier must
not include on a customer's bill a charge for goods or services that the carrier bills on
behalf of a third party unless the third party or wireless carrier has obtained the customer's
prior express authorization to include those charges on the customer's bill issued by the
wireless carrier.
new text end

new text begin (b) If a customer of a wireless carrier disputes any third-party charge appearing
on that customer's wireless bill, the customer shall not be obligated to pay the disputed
charge until the wireless carrier or third party provides evidence of the customer's prior
express authorization to include such charge. Evidence of the customer's prior express
authorization must be produced to the customer within 14 calendar days after the customer
notifies the wireless carrier that the charge is disputed. A customer shall be permitted to
dispute any charges that a wireless carrier bills on behalf of a third party for up to six
months after the charge appears on the customer's wireless bill. If the wireless carrier
cannot produce evidence that the customer authorized the third-party charge, the wireless
carrier must remove the charge from the customer's wireless bill and credit the customer
for the unauthorized third-party charges incurred during the previous six months.
new text end

new text begin (c) A wireless carrier or third party meets the prior express authorization
requirements of this subdivision only if it obtains or receives:
new text end

new text begin (1) written authorization from the customer containing clear, unambiguous, and
separate authorizations for each third-party good or service to be included on the
customer's bill;
new text end

new text begin (2) a customer's oral authorization if the customer subsequently opts in by an e-mail
or text message exchange with the third party or wireless carrier; or
new text end

new text begin (3) a customer's affirmative authorization via an interactive voice response system
or via an electronic communication, such as through the Internet, by e-mail, or by text
message, if the customer subsequently opts in by e-mail or by text message.
new text end

new text begin (d) For direct-dialed calls, where the call itself represents the service for which the
charge is placed on a customer's wireless telephone bill, evidence that the call was placed
from the number that is subject to the wireless telephone bill is sufficient evidence of
authorization for that call for billing authorization purposes established in this subdivision.
Nothing in this subdivision may be construed to change obligations or affect rights
under section 325F.692.
new text end

new text begin (e) This subdivision does not apply to charges for collect calls.
new text end

new text begin (f) All wireless carriers must provide a means by which customers may restrict
access to third-party charges on the customer's wireless bill.
new text end

new text begin (g) Nothing in this subdivision restricts the right of a wireless carrier to seek to
recover from a third party unauthorized charges credited to the customer by the wireless
carrier.
new text end

new text begin Subd. 5. new text end

new text begin Extensions in contract length. new text end

new text begin (a) If a customer is offered, accepts, or
requests a good, service, or promotion or changes the customer's wireless service plan in
any manner, and this good, service, promotion, or change will result in the extension of
the minimum contract term or create a new contract with a minimum term, the wireless
carrier must disclose to the customer at the point of sale or acceptance that the requested
good, service, promotion, or change will result in a contract extension or creation of a new
contract with a minimum term, and must further disclose the length of the extension or
new term.
new text end

new text begin (b) If the customer and a representative of the carrier are personally present at
the point of sale or acceptance, the wireless provider must also in connection with the
new good, service, promotion, or change obtain the customer's signed consent in an
independent document. The independent document must only include the terms set forth
in clauses (1) to (3) and must clearly and conspicuously disclose in at least 14-point font:
new text end

new text begin (1) that the new good, service, promotion, or change will result in an extension or
renewal of the customer's contract;
new text end

new text begin (2) the new contract start and end dates; and
new text end

new text begin (3) that failure to complete the new contract term may result in early termination
fees and, if so, the amount of the fees.
new text end

new text begin (c) If the customer's consent is obtained via the Internet, the wireless provider must
disclose in at least 14-point font the terms listed in paragraph (b), clauses (1) to (3). The
customer must provide a valid electronic signature showing that the wireless provider has
disclosed and the customer has agreed to the extension or renewal of the contract. An
electronic record must be available upon request to the customer until the new contract
term expires.
new text end

new text begin (d) If the customer's consent is obtained orally, the wireless provider must clearly
disclose the terms listed in paragraph (b), clauses (1) to (3), and the customer's consent
to each term must be recorded and retained by the provider and be made available upon
request to the customer until the new contract term expires.
new text end

new text begin (e) Within ten days after a customer's contract has been extended or renewed, the
wireless service provider must notify the customer in an independent writing that the
contract has been extended or renewed. The independent writing must only include the
terms set forth in clauses (1) to (3) and must clearly and conspicuously disclose in at
least 14-point font:
new text end

new text begin (1) that the new good, service, promotion, or change will result in an extension or
renewal of the customer's contract;
new text end

new text begin (2) the new contract start and end dates; and
new text end

new text begin (3) that failure to complete the new contract term may result in early termination
fees and, if so, the amount of the fees.
new text end

new text begin (f) Failure of the provider to make any of the disclosures or to obtain any of
the consents required in this subdivision voids any contract extension covered by this
subdivision.
new text end

new text begin Subd. 6. new text end

new text begin Consumer remedies may not be limited. new text end

new text begin A wireless carrier may not
limit by contract the right of a subscriber to bring complaints or the rights and remedies
available to a subscriber by law, including class actions, in any state or federal court or
agency of competent jurisdiction. A wireless carrier may not by contract hold subscribers
liable for carrier legal costs resulting from complaints before the commission, the courts,
or another agency. A contract between a wireless carrier and a customer may not require
that disputes under the contract be submitted to arbitration.
new text end

new text begin Subd. 7. new text end

new text begin Remedies; penalties, enforcement. new text end

new text begin A violation of this section is a
violation of a law referred to in section 8.31, subdivision 1.
new text end

new text begin Subd. 8. new text end

new text begin Severability. new text end

new text begin Each of the provisions of this section, and each application
of a provision to particular circumstances, is severable. If a provision or application is
found to be contrary to law and unenforceable, it is the intention of the legislature that the
remaining provisions and applications of this section remain valid and enforceable to the
full extent possible under section 645.20.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 325F.695, new text end new text begin is repealed.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective August 1, 2008, except that subdivision 4 is effective March
1, 2009.
new text end