1986 - Massive refund to Pacific Bell telephone customers misled by the company

In 1986, the California Public Utilities Commission (PUC) ordered Pacific Bell telephone company to work out a settlement in a lawsuit Public Advocates brought against Pacific Telesis Group (PacBell parent) charging that the company’s telephone customers were misled into buying costlier options than they needed, and not informed about an affordable “lifeline” service made available by the company. The settlement resulted in a refund to customers for misleading sales practices. At the time of the order, Public Advocates’ Bob Gnaizda estimated that the refund could reach $100 million dollars, according to a New York Times article published on August 7, 1986. The Los Angeles Times reported in July 1986 that the PUC also proposed that the company be fined $49.5 million in addition to the refunds.

 

 

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