Rule-Making Notices
Notice of Hearing
Agriculture, Trade and Consumer Protection
The State of Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) announces that it will hold a public hearing on a proposed amendment to chapter ATCP 123, Wis. Adm. Code, relating to electronic communication services.
Hearing Information
Wednesday, May 28, 2008
9:00 a.m. to 11:00 a.m.
Dept. of Agriculture, Trade and Consumer Protection
2811 Agriculture Drive, Board Room (CR-106)
Madison, Wisconsin, 53718-6777
Hearing impaired persons may request an interpreter for these hearings. Please make reservations for a hearing interpreter by Thursday May 15, 2008, by writing to Michelle Reinen, Division of Trade and Consumer Protection, P.O. Box 8911, Madison, WI 53708-8911, telephone (608) 224-5160. Alternatively, you may contact the DATCP TDD at (608) 224-5058. Handicap access is available at the hearings.
Submission of Written Comments
DATCP will hold a public hearing at the time and place shown above. DATCP invites the public to attend the hearing and comment on the proposed rule. Following the public hearing, the hearing record will remain open until Friday, June 13, 2008 for additional written comments. Comments may be sent to the Division of Trade and Consumer Protection at the address below, by email to michelle.reinen@wi.gov or online at: https://apps4.dhfs.state.wi.us/admrules/public/Home
To provide comments or concerns relating to small business, please contact DATCP's small business regulatory coordinator Keeley Moll at the address above, by emailing to Keeley.Moll@wi.gov or by telephone at (608) 224-5039.
Copies of Proposed Rule
You may obtain a free copy of this rule by contacting the Wisconsin Department of Agriculture, Trade and Consumer Protection, Division of Trade and Consumer Protection, 2811 Agriculture Drive, P.O. Box 8911, Madison, WI 53708. You can also obtain a copy by calling (608) 224-5160 or emailing michelle.reinen@wi.gov. Copies will also be available at the hearings. To view the proposed rule online, go to:
Analysis Prepared by the Department of Agriculture, Trade and Consumer Protection
The Department of Agriculture, Trade and Consumer Protection (DATCP) administers rules to protect consumers against unfair sales and billing practices related to telecommunications services, cable television services and satellite television services. Current rules are contained in ch. ATCP 123, Wis. Adm. Code.
This rule updates current rule coverage to reflect new service delivery methods and “bundling" practices, and to conform to law changes enacted in 2007 Wis. Act 42. This rule maintains current protection for video service subscribers, regardless of the method used to deliver the video service.
Statutes interpreted
Sections 100.20 and 100.207, Wis. Stats.
Statutory authority
Sections 93.07 (1), 100.20 (2), 100.207 (6) (e) and 100.209 (3), Wis. Stats.
Explanation of agency authority
DATCP has general authority, under s. 93.07(1), Stats., to interpret laws under its jurisdiction. DATCP has authority, under s. 100.207, Stats., to regulate sales and billing practices related to telecommunications. DATCP also has broad authority, under s. 100.20, Stats., to regulate methods of competition and trade practices in business.
Related rules or statutes
The Wisconsin public service commission (PSC) regulates telecommunications service providers to the extent provided under chapter 196, Stats. The department of financial institutions (DFI) and local municipalities regulate video service providers to the extent provided in ch. 66, Stats.
2007 Wisconsin Act 42 changed the way that Wisconsin regulates cable television and other video services. The act provided for state, rather than local, franchising of video service providers. The act also changed prior definitions, and added a new definition of “video services." This rule incorporates new statutory definitions, in order to maintain the coverage of current rules.
Rule background
Current DATCP rules regulate unfair sales and billing practices related to telecommunications, cable television and satellite television provided to consumers on a subscription basis. The current rules do all of the following:
  Require providers to disclose subscription terms and conditions.
  Prohibit billing for unordered services.
  Prohibit the imposition of price increases without prior notice and opportunity to cancel.
  Prohibit unfair “negative option" billing practices.
Since DATCP adopted the current rules, business practices and technology have changed. For example, video services can now be delivered over telephone lines. Providers now offer “bundled" service packages that may include local telephone, long-distance telephone, wireless telephone, video, internet and other services. Consumers may receive a number of these services on one electronic device, and may receive one bill for all of the “bundled" services.
This rule updates current rule coverage to ensure that protection is afforded to video service consumers on an equal basis, regardless of the technology or method used to deliver the service. This rule does not make major changes in rule content, but does make minor content adjustments to address new service delivery methods and “bundling" practices.
Plain language analysis
This rule does all of the following:
  Retitles ch. ATCP 123 from “Telecommunications and Cable Television Services" to “Electronic Communication Services."
  Defines “electronic communication service" to include telecommunications service, video service, broadband internet service and satellite television service provided on to consumers on a subscription basis. “Electronic communication service" also includes any good or service that a subscriber is required to purchase from the service provider in order to obtain the electronic communication service.
  Defines “video programming" and “video service," consistent with current statutes.
  Changes “telecommunications service or cable television service" where it appears in the main body of the rule to “electronic communication service."
  Changes other words in the rule text to reflect recent statutory definition changes (2007 Wisconsin Act 42).
Comparison with federal regulations
Congress and the federal communications commission have significantly reduced federal regulation of telecommunications service and video services. The federal government has left, to state governments, much of the responsibility for regulating the business practices of service providers.
Comparison with rules of adjacent states
No surrounding states regulate the subscription and billing practices of telecommunication and video service providers in a manner similar to Wisconsin. The surrounding states approach the regulation of this industry by focusing on specific trade practices, such as the unauthorized switching of long-distance services or consumer protection for users of coin-operated phones. Wisconsin is the only state that has comprehensive regulation providing standards for subscription and billing practices that apply equally to all competing providers.
Summary of factual data and analytical methodologies
This rule does not depend on any complex analysis of data. This rule merely updates current rules to address changes in business practices and technology, and to incorporate new definitions created under 2007 Wisconsin ACT 42.
Initial Regulatory Flexibility Analysis
This rule will have few, if any, negative impacts on business. This rule simply updates the definitions and coverage of current rules to prevent the erosion of current consumer protection regulations. Some video service providers now use new electronic delivery methods that are not covered by current rules. This rule applies existing consumer protection standards to those new delivery methods, so that consumers will continue to enjoy protection. This rule will help maintain fair competition between video service providers, regardless of the delivery method used. None of the video service providers using the new electronic delivery methods are small businesses.
Fiscal Estimate
This rule will have no significant fiscal impact on DATCP or local units of government.
Notice of Hearing
Agriculture, Trade and Consumer Protection
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Links to Admin. Code and Statutes in this Register are to current versions, which may not be the version that was referred to in the original published document.