Ancillary service providers; prohibition; refund; penalties; program termination

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44-1574. Ancillary service providers; prohibition; refund; penalties; program termination

A. An ancillary service provider shall not use a sweepstakes, contest or entry form as authorization to change or add goods or services to a consumer's telecommunications bill.

B. An ancillary service provider shall not use any written authorization agreement to change or add goods or services to a consumer's telecommunications bill unless the authorization is clear, conspicuous and printed in at least ten point bold type. The authorization agreement shall be in the same language used in any promotional or inducement materials provided to the consumer.

C. An ancillary service provider shall not charge a consumer through the consumer's telecommunications bill for goods or services without the consumer's authorization to add the goods or services. Any person, other than a local telecommunications service provider regulated by the commission, that provides billing services for an ancillary service provider is liable under this subsection if the billing person knows or should have known through a pattern or course of conduct that the ancillary service provider, telecommunications service provider or other person is participating in charging a consumer for goods and services without the consumer's authorization. A local telecommunications service provider that is regulated by the commission is not liable as a billing person pursuant to this section unless the local telecommunications service provider knows that it is participating in charging a consumer for goods and services without the consumer's authorization.

D. A consumer does not have to pay for any goods or services that are provided by an ancillary service provider and that the consumer did not authorize or for any goods that are not delivered or for any service that is not provided.

E. If the consumer paid for any goods or services that the consumer did not authorize, the unauthorized ancillary service provider shall refund to the consumer an amount equal to all charges paid to the unauthorized ancillary service provider by that consumer. The consumer may recover reasonable attorney fees and costs incurred in obtaining a refund from an unauthorized ancillary service provider.

F. Any violation of this section is an unlawful act or practice pursuant to section 44-1522. The attorney general may investigate the act or practice and take appropriate action pursuant to chapter 10, article 7 of this title.

G. The program established by this section ends on July 1, 2009 pursuant to section 41-3102.


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