Brief ⁽¹⁾

HB 2099 would amend the Kansas Consumer Protection Act pertaining to "slamming" and "cramming." The term "slamming" refers to the unauthorized switching of a consumer's local or long distance telephone service without a consumer's express authorization. The term "cramming" refers to the addition of unauthorized charges to a consumer's telephone bill. The bill would:

• •Define "supplemental telecommunications services" to clarify a prohibition in current law against cramming by use of sweepstakes or contest drop boxes. (This is the only prohibition against cramming in current law.) The bill specifies the types of services that would be prohibited.
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• •Replace the term "local exchange carrier" and "telecommunications carrier" with the term "supplier" to subject all telecommunications service providers to the slamming prohibitions.
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• •Authorize organizations and businesses to bring their own private cause of action for slamming. In the Kansas Consumer Protection Act, the definition of "consumer" currently applies only to individuals or sole proprietors. Therefore, only individuals and sole proprietors are protected by the existing law prohibiting slamming.
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• •Require the Attorney General and the Kansas Corporation Commission to enter into a memorandum of understanding to share information necessary to enforce Kansas' slamming law and assist consumers in obtaining resolutions to slamming complaints under federal and state law.
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• •Prohibit a local exchange carrier or communications carrier from using a check or other negotiable instrument to constitute authorization to change or add services to the customer's account.

Background

HB 2099 is a product of compromise among the Attorney General's office, the Kansas Corporation Commission, and members of the telecommunications industry. The slamming law was enacted in 1998, and amendments to strengthen the law were included in 1999 HB 2343 and 2000 SB 431. (Neither bill was enacted.) These bills also included, among other provisions, a prohibition against suppliers adding certain services to consumers' bills (cramming). This provision would have had the effect of requiring the supplier, if a complaint was lodged, to prove the consumer had expressly authorized the added service. HB 2099 does not include this prohibition.

Proponents of HB 2099 included the Deputy Attorney General for Consumer Protection and the President of the Kansas Telecommunications Industry Association. There were no opponents.

The House Committee made technical amendments to the bill.

The Senate Committee of the Whole amended the bill to prohibit using a check or other negotiable instrument to constitute authorization to change or add services to the customer's account.

The Division of the Budget reports that passage of this bill would result in no fiscal impact.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi