October 7, 2003

The Michigan Public Service Commission (MPSC) today granted
in part and denied in part the complaint filed by Raymond J.
Zakrzewski against SBC Michigan (SBC) that alleged numerous
violations of the Michigan Telecommunications Act (MTA).  As
a result of the violations, the Commission ordered that SBC
pay fines of $20,000 and pay $1,100.19 in restitution to
Zakrzewski.

"The fines levied today against SBC are a direct result of
serious violations of Michigan law," noted MPSC Chair J. Peter
Lark.  "The Michigan Public Service Commission is here to
protect Michigan telephone customers from these types of
unlawful actions." 

Zakrzewski's complaint was filed on April 11, 2003.  He reported
static on one of his two residential phone lines on August 26,
2002 and called SBC to report the problem.  SBC conducted a remote
test of the line but could not establish the existence of the
problem.  Zakrzewski then requested that SBC check for problems
on its side of the network interface device (NID) and not within
his house.  Later that day, he saw a person working on the utility
pole near his residence and subsequently noticed that the static
problem was gone, assuming that SBC had repaired the problem on
its side of the NID.

On his September 7, 2002 bill, however, Zakrzewski was charged a
$71 assessment entitled "Charges for changing your service on
August 28, 2002:  1.  Repair Service Call Charge."  Because he had
never asked for a change in his service and because he neither
requested nor was aware that he had received a repair service on
August 28, Zakrzewski refused to pay the $71 charge.  Eventually,
SBC issued what it called a "goodwill adjustment" of the $71 charge. 
However, Zakrzewski subsequently received a letter from a collection
agency requesting payment of $58.88 owed to SBC. 

In his complaint, Zakrzewski alleged violations of Sections
502(1)(a); 502(1)(b); 502(1)(d); 502(1)(f); 502(1)(h); and 507(1)
of the MTA. 

The Commission found that SBC violated Sections 502(1)(a) and
502(1)(h) of the MTA.  In addition, the Commission found that SBC
violated Section 305(1)(n), although it was not alleged in the
complaint.

Section 502(1)(a) prohibits a telecommunication service from making
"a statement or representation, including the omission of material
information, regardless of the rates, terms, or conditions of
providing a telecommunication service that is false, misleading or
deceptive." 

Section 502(1)(h) prohibits a telecommunications service provider
from "caus[ing] a probability of confusion or misunderstanding as
to the legal rights, obligations or remedies of a party to a
transaction."

Section 305(1)(n) states that "a provider of basic local exchange
service shall not . . .  perform any act that has been prohibited
by this act or an order of the Commission."  The MPSC's order in
U-13079, issued on February 25, 2002, directed SBC to "refrain from
assessing its service charge against a customer unless and until it
had specifically identifie[d] that the problem is located with the
inside wiring."  SBC violated the statute by not adhering to the
February 25 order when it charged Zakrzewski for an in-home repair
visit that never took place.

Therefore, Commission ordered the SBC pay, within 30 days, to the
State of Michigan fines totaling $20,000 for violating Sections
502(1)(a) and 502(1)(h) of the MTA.  In addition, the Commission
ordered SBC to pay, within 30 days, restitution to Zakrzewski in
the amount of $1,100.19.  SBC is also ordered to cease and desist
from further violations of the MTA.

"The Commission levied significant fines in this case because of
serious violations of Michigan law, and we will not tolerate charges
made for services not rendered," Lark added. 

The MPSC is an agency within the Department of Consumer and
Industry Services.


Case No. U-13762

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