Office of the Ohio Consumers' Counsel

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Consumers' Counsel reacts to PUCO action against Buzz Telecom

COLUMBUS, Ohio – December 13, 2006 – Today, some of the recommendations from the Office of Ohio Consumers’ Counsel (OCC) were adopted by the Public Utilities Commission of Ohio (PUCO) when it ordered Buzz Telecom to stop marketing to consumers and told the company to “show cause” as to why its operations should not be permanently revoked.

“The action should help prevent consumers, especially the elderly, from being harmed through these deceptive marketing practices,” said Janine Migden-Ostrander, Consumers’ Counsel. “We requested the PUCO to take action and to prevent Buzz Telecom from engaging in misleading and potentially unlawful practices. Moving forward, we hope that the PUCO will pursue all available remedies for Ohio’s consumers and institute penalties against the company for any unlawful activities.”

In October, the OCC announced that its investigation of Buzz Telecom revealed a pattern of misleading marketing tactics and called for the PUCO to suspend the company’s ability to solicit new customers. Earlier this week, the OCC requested that Buzz Telecom be ordered to stop serving Ohioans and that a formal PUCO investigation be launched, which could result in penalties if violations of state laws and rules are uncovered.

The OCC's investigation found that Buzz Telecom representatives appear to have misled many older adults into believing that a telemarketing call was from their local telephone company and that they would receive a special senior discount. Instead, their long-distance service was switched to Buzz Telecom at rates that increased their telephone bill. The OCC found that once customers questioned their first bill, they were informed by Buzz Telecom that a $19.95 early termination fee would apply if they canceled the service.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC website at www.pickocc.org.