Telecommunications Group & 900 Numbers
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The Telecommunications Group of DWI owns and Operates several local telephone companies. One service that DWI provides to its commercial customers is the use of "900 numbers" by which third-parties (clients of DWI customers) receive products & services. Billing for these products and services is delineated as charges owed to DWI instead of the business provider (e.g. Dudes with Dough, Lonely College Co-Eds, Madame Marie - Psychic to the Stars, etc.) and often blends into the small-print of phone bills and is overlooked by spouses, parents, and persons other than the third party user who might have access to the bill.
DWI owns and operates Appalachian Bell, the local service provider for the mountain areas of North Carolina and Tennessee. You've just received a letter from Dewey Cheatham, Esq., who represents Ma & Pa Kettle of Mountaintop, NC. About a month ago, an employee in DWI's accounts receivables department called the Kettle home regarding the $500.00 Delinquency on their phone account and attempted to collect the debt. The Kettles denied any knowledge of anyone using these services and refused to pay the charges.
Further investigation revealed that the phone calls to the dating hotline made from the Kettle phone were made by the Kettle's 12 year old grandson and some of his friends, who often spent weekends with them. What are the public law and private law implications of this scenario? Make a recommendation to the DWI Board as to policies it should implement to address future problems.
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Solution Summary
The solution discusses Telecommunications Group and 900 Numbers.
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From a legal point of view, this is a billing error. See this reference:
http://www.ftc.gov/bcp/conline/pubs/buspubs/900number.shtm#Billing%20and%20Collection%20for%20Pay-Per-Call%20Services
The rule identifies eight different types of "billing errors," which are listed below. The dispute resolution procedures of the 900-Number Rule are triggered when customers assert any of these billing errors.
1. A billing statement shows a call not placed by the customer or from the customer's telephone or?although the call was made?the caller did not remain on the line as long as the statement indicates. It is not ...
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