California Court Reinstates SBC Suit

Share this content:
The California Supreme Court has reinstated a lawsuit against Pacific Bell and its subsidiary SBC Communications charging that the company made misleading statements in its marketing of caller ID blocking services to consumers.


In the ruling Dec. 15, justices wrote that lower courts were wrong to throw out a lawsuit filed against the telecom in 1999 by district attorneys in Alameda, San Mateo and Monterey counties. The lower courts had accepted Pacific Bell's argument that the state Public Utilities Commission already dealt with the issue over which the district attorneys sued and the PUC fined the company $15 million in 2001.


The Supreme Court disagreed, arguing that the two complaints were separate. The district attorneys accused Pacific Bell of having its telemarketing provider intentionally undersell caller ID blocking services to consumers to ensure bigger profits for its caller ID service.


Telemarketers represented a switch to unblocked caller ID as an upgrade rather than a downgrade, according to the complaint. In addition, Pacific Bell represented certain service packages as "basic" or "essential" when they contained optional and more expensive features.


close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above