PacBell Ordered to Alter Pitch for Repair Service

State regulators have ordered Pacific Bell to change its sales pitches for optional wiring repair services because they “may be misleading” residential customers.

The Public Utilities Commission last week criticized PacBell’s marketing scripts for pushing sales of its higher-priced WirePro Plus repair plan and only discussing its cheaper plan when the customer rejects WirePro Plus.

In the future, PacBell must clearly explain to callers that PacBell sells more than one wiring repair service and that they have a choice of plans, the PUC ruled. Customers can also choose to skip the plans altogether.

A PacBell representative said the company’s sales methods are not misleading. “But it’s clear that they thought there was some confusion,” said PacBell spokesman John Britton. “So we’re already making script changes.”

The commission also approved sharply higher prices and removed price restrictions on the wiring repair plans and several other services offered by PacBell, the state’s largest local phone company.

About 60% of PacBell’s more than 8 million residential customers (covering 10.8 million lines) subscribe to its basic wiring protection plan, called WirePro. The plan works like an insurance plan for wiring. Residential customers pay a premium of 60 cents per month and, in return, PacBell will fix problems with telephone wires within the home (“inside wire”) as well as phone jacks for free.

The company also gained approval to raise the cap on its wiring plan for businesses to $1.90 per month, up from $1.30.

PacBell has been selling the more expensive WirePro Plus since 1998. That plan includes all coverage offered by the basic plan, plus the use of a loaner telephone for up to 60 days. About 5% of PacBell’s residential customers subscribe to the plan, which costs $2.25 per month--$1.65 more than the basic plan.

Some PacBell service representatives have complained to regulators that the company pressures them to sell the higher-cost service and to avoid telling customers that rival firms can also repair their wires and jacks.

In one booklet given to service representatives, the company calls for the “elimination of inside wire disclosure” and instructs employees to “position Pacific Bell as [the] solution for inside wire needs. Do not provide options unless asked.”

Consumer groups and many employees say those and other PacBell actions are indicative of a company willing to mislead customers to boost sales.

More than a year ago, a PacBell labor union and consumer groups filed a complaint with regulators accusing the phone company of deceptive sales and marketing on high-profit services and features ranging from wiring repair plans to caller ID. Regulators held hearings on the issue earlier this year. The case is still pending.

“The odds of customers using [the phone that comes with] WirePro Plus are slim to none,” said a longtime employee who asked not to be named. “We’re making an extra $1.65 a month.”

While the $19.80-a-year plan covers a loaner phone for two months, a replacement phone can be purchased for $15 or less at an electronics or department store.

And the PUC’s approval of an increase in the basic wiring plan--doubling the price of the current 60 cents a month for residential customers--has rankled critics. Consumer groups say wiring inside the home rarely needs repair, even in regions prone to water damage. And damage by wire-gnawing rodents is not covered by the plans.

In addition, the plans are redundant for apartment dwellers because inside wiring is the responsibility of the landlord.

PacBell has vigorously defended its sales methods, arguing that its employees are merely informing customers of what’s available.

“We believe it’s our right and responsibility to tell customers about what products and services we have to offer,” Britton said. “We think that WirePro is a very good value, but it’s strictly up to the customer.”

Also at its meeting last week, state regulators approved an increase in fees for PacBell-handled person-to-person calls to $4, up from $2.95.

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Times staff writer Elizabeth Douglass can be reached at [email protected].