69-3-1309. Liability for unauthorized charges on telephone bill -- penalty for violation. (1) If, after a hearing held pursuant to the Montana Administrative Procedure Act, the commission finds that any entity has initiated unauthorized charges to be placed on a customer's telephone bill for services or products not provided or authorized or that a billing aggregator has caused unauthorized charges to be forwarded to a billing agent for placement on a telephone bill, the commission may impose a civil fine not to exceed $1,000 for each violation. The fines must be deposited in the state general fund.

(2) If, after a hearing held pursuant to the Montana Administrative Procedure Act, the commission finds that a carrier or service provider has, with a frequency to indicate a general business practice, initiated unauthorized charges to be placed on a customer's telephone bill for services or products not provided or authorized or that a billing aggregator has caused unauthorized charges to be forwarded to a billing agent for placement on a telephone bill, the commission may take any of the following actions:

(a) notify the secretary of state, who shall then suspend or revoke any license, registration, or other filing entitling that carrier or service provider to transact business in this state;

(b) prohibit any billing agent that bills directly on behalf of the service provider determined to have engaged in a pattern of violations from placing the service provider's unauthorized charges on a customer's telephone bill;

(c) prohibit a carrier or service provider determined to have engaged in a pattern of violations from initiating unauthorized charges to be placed on a customer's telephone bill;

(d) prohibit a billing aggregator from forwarding that entity's unauthorized charges to a billing agent;

(e) revoke the registration of the service provider or billing aggregator; or

(f) limit the prohibitions under this subsection (2) to a specific period of time. A prohibition under this subsection (2) may be withdrawn upon a showing of good cause.

(3) The commission shall provide adequate time for a billing agent that is prohibited from billing on behalf of a service provider under this section to terminate contractual agreements with that service provider.

(4) The remedies provided by this section are in addition to any other remedies, including injunctive relief, available by law.

(5) A carrier or service provider that purposely or knowingly initiates unauthorized charges to be placed on a customer's telephone bill for services or products not provided to or authorized by the customer or a billing aggregator that causes unauthorized charges to be forwarded to a billing agent for placement on a telephone bill is guilty of a misdemeanor and upon conviction shall be punished as provided in 46-18-212.

History: En. Sec. 6, Ch. 249, L. 2003.