TURN Consumer Advocates : Consumers Disagree With New AT&T Service Agreement

For Immediate Release: September 18th, 2008
Contact: Mindy Spatt, Communications Director

Consumers Disagree With New AT&T Service Agreement

Consumer advocates TURN and DRA today filed a joint protest of AT&T's one-sided "Service Agreement" at the California Public Utilities Commission. Pursuant to prior CPUC permission, AT&T is withdrawing most of its tariffs that describe the prices, terms and conditions of services and proposes to replace them with the new "Service Agreement". The agreement, mailed to millions of AT&T customers throughout California, has caused widespread concern and anger. It eliminates customer rights to notice and legal remedies, and allows AT&T to impose any and all terms it chooses.

"AT&T is taking advantage of its' enormous market share to force consumers into giving up basic rights" said TURN executive director Mark Toney. "TURN is hearing from consumers throughout California who are both confused and concerned about what this contract means. Unfortunately, the meaning is all too clear: AT&T is saying i is our way or the highway, agree to our terms or get lost."

DRA said the agreement offered consumers no choices. "It doesn't provide the information consumers need to make an informed decision," said Dana Appling, executive director of DRA. "If the CPUC allows AT&T to impose this lopsided agreement on customers, consumers will be left in the dark about prices, terms, and conditions."

The consumer protest urges the CPUC to reject AT&T's detariffing advice letter and the associated "Service Agreement" because it:

Fails to provide crucial consumer information necessary tomaking informed choices about services and prices
Does not provide legally required notice of customer's rights
Violates requirements of notice before rate hikes
Fails to inform customers of the caps on basic service
Fails to inform customers of the impact on bundles
Requires customers to pay for illegal, unauthorized calls.
Imposes binding arbitration and restricts legal remedies
Illegal limits on AT&T's liability
Unfair provisions for credit checks

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