Aug 12, 2008 6:33 pm US/Pacific
New AT&T Residential Service Agreement Criticized
SAN FRANCISCO (CBS 5) ―
The AT&T Residential Service Agreement looks like junk mail, but it is 18 folding pages and 900 lines of important rules that apply to the home phone service provider and consumers.
AT&T told CBS 5 ConsumerWatch it's the first time tariff information has been sent directly to consumers. In the past, the documents outlining service rules, charges, and prices were reviewed and housed by the California Public Utilities Commission. Industry deregulation now means it's the consumers' responsibility to understand service agreements.
The agreement reads: "We reserve the right to revise prices and charges from time to time." And consumers will "generally" get written notices. It also warns consumers that third parties could monitor data traffic, so security is the customer's responsibility.
Bill Nusbaum with The Utility Reform Network says text-heavy document is confusing and most people will probably throw it away. "There is a message there saying 'Guess what we may be called by the government to wiretap you and that's okay,'" he said.
What bothers Nusbaum most is a line explaining how customers are never allowed to file a class action lawsuit against AT&T.
"This may be illegal and it is a get out of jail free card for AT&T, Nusbaum said. "We will review this further and see if there is more for the Attorney General to pursue."
He adds, if consumers don't like what's outlined in the agreement, they should file a complaint with the PUC, file a complaint with their legislator or shop around for new home telephone service."
The letters are being mailed out now. Customers have until October 1st to cancel AT&T service if they don't agree to the terms. Not acting at all, will keep their service as is.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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