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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of
Central Telecom Long Distance, Inc.
Complaints Regarding
Unauthorized Change of
Subscriber
s Telecommunications Carrier
IC Nos. 11-S003102
11-S3134322
Adopted: May 8, 2013
Released: May 10, 2013
By the Deputy Chief, Consumer Policy Division, Consumer & Governmental Affairs Bureau:
In this Order, we consider the complaints
alleging that Central Telecom Long Distance, Inc., (Central Telecom) changed Complainants
telecommunications service providers without obtaining authorization and verification from Complainants in violation of the Commission
s rules.
We conclude that Central Telecom
s actions did result in unauthorized changes in Complainants
telecommunications service providers and we grant Complainants
complaints.
In December 1998, the Commission released the Section 258 Order in which it adopted rules to implement Section 258 of the Communications Act of 1934 (Act), as amended by the Telecommunications Act of 1996 (1996 Act).
Section 258 prohibits the practice of
slamming,
the submission or execution of an unauthorized change in a subscriber
s selection of a provider of telephone exchange service or telephone toll service.
In the Section 258 Order, the Commission adopted aggressive new rules designed to take the profit out of slamming, broadened the scope of the slamming rules to encompass all carriers, and modified its existing requirements for the authorization and verification of preferred carrier changes. The rules require, among other things, that a carrier receive individual subscriber consent before a carrier change may occur.
Pursuant to Section 258, carriers are absolutely barred from changing a customer's preferred local or long distance carrier without first complying with one of the Commission's verification procedures.
Specifically, a carrier must: (1) obtain the subscriber's written or electronically signed authorization in a format that meets the requirements of
Section 64.1130; (2) obtain confirmation from the subscriber via a toll-free number provided exclusively for the purpose of confirming orders electronically; or (3) utilize an independent third party to verify the subscriber's order.
The Commission also has adopted liability rules. These rules require the carrier to absolve the subscriber where the subscriber has not paid his or her bill. In that context, if the subscriber has not already paid charges to the unauthorized carrier, the subscriber is absolved of liability for charges imposed by the unauthorized carrier for service provided during the first 30 days after the unauthorized change.
Where the subscriber has paid charges to the unauthorized carrier, the Commission
s rules require that the unauthorized carrier pay 150% of those charges to the authorized carrier, and the authorized carrier shall refund or credit to the subscriber 50% of all charges paid by the subscriber to the unauthorized carrier.
Carriers should note that our actions in this order do not preclude the Commission from taking additional action, if warranted, pursuant to Section 503 of the Act.
We received Complainants
complaints alleging that Complainants
telecommunications service providers had been changed to Central Telecom without Complainants
authorization.
Pursuant to Sections 1.719 and 64.1150 of our rules,
we notified Central Telecom of the complaints and Central Telecom responded.
Central Telecom states that authorizations were received and confirmed through third party verifications (TPVs). The Commission
s rules require that the verification elicit, amongst other things, confirmation that the person on the call is
authorized to make the carrier change.
We have reviewed the TPVs that Central Telecom submitted with its responses and, in each case, the verifier instead asks the person on the call
do you have the authority to make changes to your long distance service?
A switch from one carrier to another carrier differs from merely making changes to the customer
s existing service.
As we emphasized in the Fourth Report and Order,
any description of the carrier change transaction
shall not be misleading
and verifiers should convey explicitly that
the consumers will have authorized a carrier change, and not for instance an upgrade in existing service (emphasis added).
We find that Central Telecom
s actions were in violation of our carrier change rules, and we discuss Central Telecom
s liability below.
Pursuant to Section 64.1170(b) our rules, Central Telecom must forward to the authorized carriers an amount equal to 150% of all charges paid by the subscriber to Central Telecom.
According to the complaints, Central Telecom must forward to the authorized carriers the amounts, along with copies of any telephone bills issued from the company to the Complainants.
Within ten days of receipt of this amount, the authorized carriers shall provide a refund or credit to Complainants in the amount of 50% of all charges paid by Complainants to Central Telecom. Complainants has the option of asking the authorized carriers to re-rate Central Telecom
s charges based on the authorized carriers rates and, on behalf of Complainants, seek from Central Telecom, any re-rated amount exceeding 50% of all charges paid by the Complainants to Central Telecom. The authorized carriers must also send a notice to the Commission, referencing this Order, stating that is has given a refund or credit to Complainants.
If the authorized carriers have not received the reimbursement required from Central Telecom within 45 days of the release of this Order, the authorized carriers must notify the Commission and Complainants accordingly. The authorized carriers also must notify the Complainant of his or her right to pursue a claim against Central Telecom for a refund of all charges paid to Central Telecom.
Accordingly, IT IS ORDERED that, pursuant to Section 258 of the Communications Act of 1934, as amended, 47 U.S.C.
258, and Sections 0.141, 0.361 and 1.719 of the Commission
s rules, 47 C.F.R.
0.141, 0.361, 1.719, the complaints filed against Central Telecom Long Distance, Inc., ARE GRANTED.
IT IS FURTHER ORDERED that, pursuant to section 64.1170(d) of the Commission
s rules, 47 C.F.R.
64.1170(d), Complainants are entitled to absolution for the charges incurred during the first thirty days after the unauthorized change occurred and neither the Central Telecom nor the authorized carriers may pursue any collection against Complainants for those charges.
IT IS FURTHER ORDERED that this Order is effective upon release.
FEDERAL COMMUNICATIONS COMMISSION
Nancy A. Stevenson, Deputy Chief
Consumer Policy Division
Consumer & Governmental Affairs Bureau
APPENDIX
INFORMAL
DATE OF DATE OF
AUTHORIZED
COMPLAINT
COMPLAINT
RESPONSE
CARRIER
NUMBER
11-S003102
February 7, 2011
March 11, 2011
Windstream
11-S3134322
June 2, 2011
July 7, 2011
Verizon
See Appendix.
See 47 C.F.R.
64.1100
64.1190.
47 U.S.C.
258(a); Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat. 56 (1996); Implementation of the Subscriber Carrier Selection Changes Provisions of the Telecommunications Act of 1996; Policies and Rules Concerning Unauthorized Changes of Consumers
Long Distance Carriers, CC Docket No. 94-129, Second Report and Order and Further Notice of Proposed Rule Making, 14 FCC Rcd 1508 (1998) (Section 258 Order), stayed in part, MCI WorldCom v. FCC, No. 99-1125 (D.C. Cir. May 18, 1999); First Order on Reconsideration, 15 FCC Rcd 8158 (2000); stay lifted, MCI WorldCom v. FCC, No. 99-1125 (D.C. Cir. June 27, 2000); Third Report and Order and Second Order on Reconsideration, 15 FCC Rcd 15996 (2000), Errata, DA No. 00-2163 (rel. Sept. 25, 2000), Erratum, DA No. 00-2192 (rel. Oct. 4, 2000), Order, FCC 01-67 (rel. Feb. 22, 2001); Third Order on Reconsideration and Second Further Notice of Proposed Rule Making, 18 FCC Rcd 5099 (2003); Order, 18 FCC Rcd 10997 (2003); Fourth Report and Order, 23 FCC Rcd 493 (2008). Prior to the adoption of Section 258, the Commission had taken various steps to address the slamming problem. See, e.g., Policies and Rules Concerning Unauthorized Changes of Consumers' Long Distance Carriers, CC Docket No. 94-129, Report and Order, 10 FCC
47 U.S.C.
258(a).
See 47 C.F.R.
64.1120.
47 U.S.C.
258(a).
See 47 C.F.R.
64.1120(c). Section 64.1130 details the requirements for letter of agency form and content for written or electronically signed authorizations. 47 C.F.R.
64.1130.
See 47 C.F.R.
64.1140, 64.1160. Any charges imposed by the unauthorized carrier on the subscriber for service provided after this 30-day period shall be paid by the subscriber to the authorized carrier at the rates the subscriber was paying to the authorized carrier at the time of the unauthorized change. Id.
See 47 C.F.R.
64.1140, 64.1170.
See 47 U.S.C.
See Appendix.
47 C.F.R.
1.719 (Commission procedure for informal complaints filed pursuant to Section 258 of the Act); 47 C.F.R.
64.1150 (procedures for resolution of unauthorized changes in preferred carrier).
See Appendix.
See 47 C.F. R.
64.1120(c)(3)(iii).
Cf. Consumer Telcom, Inc., Order on Reconsideration, 27 FCC Rcd 5340 (CGB 2012) (
the verifier
s question,
Do you have authority to make changes to your long distance service?
did not confirm that the person was authorizing a change that would result in receiving service from a different carrier
See Fourth Report and Order, 23 FCC Rcd 493 (2008)(emphasis added); see also 47 C.F.R.
64.1120(c)(3)(iii).
If either Complainant is unsatisfied with the resolution of this complaint, such Complainant may file a formal complaint with the Commission pursuant to Section 1.721 of the Commission
s rules, 47 C.F.R.
1.721. Such filing will be deemed to relate back to the filing date of such Complainant
s informal complaint so long as the formal complaint is filed within 45 days from the date this order is mailed or delivered electronically to such Complainant. See 47 C.F.R.
1.719.
47 C.F.R.
64.1170(b).
See 47 C.F.R.
64.1170(c).
See 47 C.F.R.
64.1170(e).
Federal Communications Commission
DA 13-1063
PAGE
PAGE
Federal Communications Commission
DA 13-1063
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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of
Central Telecom Long Distance, Inc.
Complaints Regarding
Unauthorized Change of
Subscriber
s Telecommunications Carrier
IC Nos. 11-S003102
11-S3134322
Adopted: May 8, 2013
Released: May 10, 2013
By the Deputy Chief, Consumer Policy Division, Consumer & Governmental Affairs Bureau:
In this Order, we consider the complaints
alleging that Central Telecom Long Distance, Inc., (Central Telecom) changed Complainants
telecommunications service providers without obtaining authorization and verification from Complainants in violation of the Commission
s rules.
We conclude that Central Telecom
s actions did result in unauthorized changes in Complainants
telecommunications service providers and we grant Complainants
complaints.
In December 1998, the Commission released the Section 258 Order in which it adopted rules to implement Section 258 of the Communications Act of 1934 (Act), as amended by the Telecommunications Act of 1996 (1996 Act).
Section 258 prohibits the practice of
slamming,
the submission or execution of an unauthorized change in a subscriber
s selection of a provider of telephone exchange service or telephone toll service.
In the Section 258 Order, the Commission adopted aggressive new rules designed to take the profit out of slamming, broadened the scope of the slamming rules to encompass all carriers, and modified its existing requirements for the authorization and verification of preferred carrier changes. The rules require, among other things, that a carrier receive individual subscriber consent before a carrier change may occur.
Pursuant to Section 258, carriers are absolutely barred from changing a customer's preferred local or long distance carrier without first complying with one of the Commission's verification procedures.
Specifically, a carrier must: (1) obtain the subscriber's written or electronically signed authorization in a format that meets the requirements of
Section 64.1130; (2) obtain confirmation from the subscriber via a toll-free number provided exclusively for the purpose of confirming orders electronically; or (3) utilize an independent third party to verify the subscriber's order.
The Commission also has adopted liability rules. These rules require the carrier to absolve the subscriber where the subscriber has not paid his or her bill. In that context, if the subscriber has not already paid charges to the unauthorized carrier, the subscriber is absolved of liability for charges imposed by the unauthorized carrier for service provided during the first 30 days after the unauthorized change.
Where the subscriber has paid charges to the unauthorized carrier, the Commission
s rules require that the unauthorized carrier pay 150% of those charges to the authorized carrier, and the authorized carrier shall refund or credit to the subscriber 50% of all charges paid by the subscriber to the unauthorized carrier.
Carriers should note that our actions in this order do not preclude the Commission from taking additional action, if warranted, pursuant to Section 503 of the Act.
We received Complainants
complaints alleging that Complainants
telecommunications service providers had been changed to Central Telecom without Complainants
authorization.
Pursuant to Sections 1.719 and 64.1150 of our rules,
we notified Central Telecom of the complaints and Central Telecom responded.
Central Telecom states that authorizations were received and confirmed through third party verifications (TPVs). The Commission
s rules require that the verification elicit, amongst other things, confirmation that the person on the call is
authorized to make the carrier change.
We have reviewed the TPVs that Central Telecom submitted with its responses and, in each case, the verifier instead asks the person on the call
do you have the authority to make changes to your long distance service?
A switch from one carrier to another carrier differs from merely making changes to the customer
s existing service.
As we emphasized in the Fourth Report and Order,
any description of the carrier change transaction
shall not be misleading
and verifiers should convey explicitly that
the consumers will have authorized a carrier change, and not for instance an upgrade in existing service (emphasis added).
We find that Central Telecom
s actions were in violation of our carrier change rules, and we discuss Central Telecom
s liability below.
Pursuant to Section 64.1170(b) our rules, Central Telecom must forward to the authorized carriers an amount equal to 150% of all charges paid by the subscriber to Central Telecom.
According to the complaints, Central Telecom must forward to the authorized carriers the amounts, along with copies of any telephone bills issued from the company to the Complainants.
Within ten days of receipt of this amount, the authorized carriers shall provide a refund or credit to Complainants in the amount of 50% of all charges paid by Complainants to Central Telecom. Complainants has the option of asking the authorized carriers to re-rate Central Telecom
s charges based on the authorized carriers rates and, on behalf of Complainants, seek from Central Telecom, any re-rated amount exceeding 50% of all charges paid by the Complainants to Central Telecom. The authorized carriers must also send a notice to the Commission, referencing this Order, stating that is has given a refund or credit to Complainants.
If the authorized carriers have not received the reimbursement required from Central Telecom within 45 days of the release of this Order, the authorized carriers must notify the Commission and Complainants accordingly. The authorized carriers also must notify the Complainant of his or her right to pursue a claim against Central Telecom for a refund of all charges paid to Central Telecom.
Accordingly, IT IS ORDERED that, pursuant to Section 258 of the Communications Act of 1934, as amended, 47 U.S.C.
258, and Sections 0.141, 0.361 and 1.719 of the Commission
s rules, 47 C.F.R.
0.141, 0.361, 1.719, the complaints filed against Central Telecom Long Distance, Inc., ARE GRANTED.
IT IS FURTHER ORDERED that, pursuant to section 64.1170(d) of the Commission
s rules, 47 C.F.R.
64.1170(d), Complainants are entitled to absolution for the charges incurred during the first thirty days after the unauthorized change occurred and neither the Central Telecom nor the authorized carriers may pursue any collection against Complainants for those charges.
IT IS FURTHER ORDERED that this Order is effective upon release.
FEDERAL COMMUNICATIONS COMMISSION
Nancy A. Stevenson, Deputy Chief
Consumer Policy Division
Consumer & Governmental Affairs Bureau
APPENDIX
INFORMAL
DATE OF DATE OF
AUTHORIZED
COMPLAINT
COMPLAINT
RESPONSE
CARRIER
NUMBER
11-S003102
February 7, 2011
March 11, 2011
Windstream
11-S3134322
June 2, 2011
July 7, 2011
Verizon
See Appendix.
See 47 C.F.R.
64.1100
64.1190.
47 U.S.C.
258(a); Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat. 56 (1996); Implementation of the Subscriber Carrier Selection Changes Provisions of the Telecommunications Act of 1996; Policies and Rules Concerning Unauthorized Changes of Consumers
Long Distance Carriers, CC Docket No. 94-129, Second Report and Order and Further Notice of Proposed Rule Making, 14 FCC Rcd 1508 (1998) (Section 258 Order), stayed in part, MCI WorldCom v. FCC, No. 99-1125 (D.C. Cir. May 18, 1999); First Order on Reconsideration, 15 FCC Rcd 8158 (2000); stay lifted, MCI WorldCom v. FCC, No. 99-1125 (D.C. Cir. June 27, 2000); Third Report and Order and Second Order on Reconsideration, 15 FCC Rcd 15996 (2000), Errata, DA No. 00-2163 (rel. Sept. 25, 2000), Erratum, DA No. 00-2192 (rel. Oct. 4, 2000), Order, FCC 01-67 (rel. Feb. 22, 2001); Third Order on Reconsideration and Second Further Notice of Proposed Rule Making, 18 FCC Rcd 5099 (2003); Order, 18 FCC Rcd 10997 (2003); Fourth Report and Order, 23 FCC Rcd 493 (2008). Prior to the adoption of Section 258, the Commission had taken various steps to address the slamming problem. See, e.g., Policies and Rules Concerning Unauthorized Changes of Consumers' Long Distance Carriers, CC Docket No. 94-129, Report and Order, 10 FCC
47 U.S.C.
258(a).
See 47 C.F.R.
64.1120.
47 U.S.C.
258(a).
See 47 C.F.R.
64.1120(c). Section 64.1130 details the requirements for letter of agency form and content for written or electronically signed authorizations. 47 C.F.R.
64.1130.
See 47 C.F.R.
64.1140, 64.1160. Any charges imposed by the unauthorized carrier on the subscriber for service provided after this 30-day period shall be paid by the subscriber to the authorized carrier at the rates the subscriber was paying to the authorized carrier at the time of the unauthorized change. Id.
See 47 C.F.R.
64.1140, 64.1170.
See 47 U.S.C.
See Appendix.
47 C.F.R.
1.719 (Commission procedure for informal complaints filed pursuant to Section 258 of the Act); 47 C.F.R.
64.1150 (procedures for resolution of unauthorized changes in preferred carrier).
See Appendix.
See 47 C.F. R.
64.1120(c)(3)(iii).
Cf. Consumer Telcom, Inc., Order on Reconsideration, 27 FCC Rcd 5340 (CGB 2012) (
the verifier
s question,
Do you have authority to make changes to your long distance service?
did not confirm that the person was authorizing a change that would result in receiving service from a different carrier
See Fourth Report and Order, 23 FCC Rcd 493 (2008)(emphasis added); see also 47 C.F.R.
64.1120(c)(3)(iii).
If either Complainant is unsatisfied with the resolution of this complaint, such Complainant may file a formal complaint with the Commission pursuant to Section 1.721 of the Commission
s rules, 47 C.F.R.
1.721. Such filing will be deemed to relate back to the filing date of such Complainant
s informal complaint so long as the formal complaint is filed within 45 days from the date this order is mailed or delivered electronically to such Complainant. See 47 C.F.R.
1.719.
47 C.F.R.
64.1170(b).
See 47 C.F.R.
64.1170(c).
See 47 C.F.R.
64.1170(e).
Federal Communications Commission
DA 13-1063
PAGE
PAGE
Federal Communications Commission
DA 13-1063
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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of
Central Telecom Long Distance, Inc.
Complaints Regarding
Unauthorized Change of
Subscriber
s Telecommunications Carrier
IC Nos. 11-S003102
11-S3134322
Adopted: May 8, 2013
Released: May 10, 2013
By the Deputy Chief, Consumer Policy Division, Consumer & Governmental Affairs Bureau:
In this Order, we consider the complaints
alleging that Central Telecom Long Distance, Inc., (Central Telecom) changed Complainants
telecommunications service providers without obtaining authorization and verification from Complainants in violation of the Commission
s rules.
We conclude that Central Telecom
s actions did result in unauthorized changes in Complainants
telecommunications service providers and we grant Complainants
complaints.
In December 1998, the Commission released the Section 258 Order in which it adopted rules to implement Section 258 of the Communications Act of 1934 (Act), as amended by the Telecommunications Act of 1996 (1996 Act).
Section 258 prohibits the practice of
slamming,
the submission or execution of an unauthorized change in a subscriber
s selection of a provider of telephone exchange service or telephone toll service.
In the Section 258 Order, the Commission adopted aggressive new rules designed to take the profit out of slamming, broadened the scope of the slamming rules to encompass all carriers, and modified its existing requirements for the authorization and verification of preferred carrier changes. The rules require, among other things, that a carrier receive individual subscriber consent before a carrier change may occur.
Pursuant to Section 258, carriers are absolutely barred from changing a customer's preferred local or long distance carrier without first complying with one of the Commission's verification procedures.
Specifically, a carrier must: (1) obtain the subscriber's written or electronically signed authorization in a format that meets the requirements of
Section 64.1130; (2) obtain confirmation from the subscriber via a toll-free number provided exclusively for the purpose of confirming orders electronically; or (3) utilize an independent third party to verify the subscriber's order.
The Commission also has adopted liability rules. These rules require the carrier to absolve the subscriber where the subscriber has not paid his or her bill. In that context, if the subscriber has not already paid charges to the unauthorized carrier, the subscriber is absolved of liability for charges imposed by the unauthorized carrier for service provided during the first 30 days after the unauthorized change.
Where the subscriber has paid charges to the unauthorized carrier, the Commission
s rules require that the unauthorized carrier pay 150% of those charges to the authorized carrier, and the authorized carrier shall refund or credit to the subscriber 50% of all charges paid by the subscriber to the unauthorized carrier.
Carriers should note that our actions in this order do not preclude the Commission from taking additional action, if warranted, pursuant to Section 503 of the Act.
We received Complainants
complaints alleging that Complainants
telecommunications service providers had been changed to Central Telecom without Complainants
authorization.
Pursuant to Sections 1.719 and 64.1150 of our rules,
we notified Central Telecom of the complaints and Central Telecom responded.
Central Telecom states that authorizations were received and confirmed through third party verifications (TPVs). The Commission
s rules require that the verification elicit, amongst other things, confirmation that the person on the call is
authorized to make the carrier change.
We have reviewed the TPVs that Central Telecom submitted with its responses and, in each case, the verifier instead asks the person on the call
do you have the authority to make changes to your long distance service?
A switch from one carrier to another carrier differs from merely making changes to the customer
s existing service.
As we emphasized in the Fourth Report and Order,
any description of the carrier change transaction
shall not be misleading
and verifiers should convey explicitly that
the consumers will have authorized a carrier change, and not for instance an upgrade in existing service (emphasis added).
We find that Central Telecom
s actions were in violation of our carrier change rules, and we discuss Central Telecom
s liability below.
Pursuant to Section 64.1170(b) our rules, Central Telecom must forward to the authorized carriers an amount equal to 150% of all charges paid by the subscriber to Central Telecom.
According to the complaints, Central Telecom must forward to the authorized carriers the amounts, along with copies of any telephone bills issued from the company to the Complainants.
Within ten days of receipt of this amount, the authorized carriers shall provide a refund or credit to Complainants in the amount of 50% of all charges paid by Complainants to Central Telecom. Complainants has the option of asking the authorized carriers to re-rate Central Telecom
s charges based on the authorized carriers rates and, on behalf of Complainants, seek from Central Telecom, any re-rated amount exceeding 50% of all charges paid by the Complainants to Central Telecom. The authorized carriers must also send a notice to the Commission, referencing this Order, stating that is has given a refund or credit to Complainants.
If the authorized carriers have not received the reimbursement required from Central Telecom within 45 days of the release of this Order, the authorized carriers must notify the Commission and Complainants accordingly. The authorized carriers also must notify the Complainant of his or her right to pursue a claim against Central Telecom for a refund of all charges paid to Central Telecom.
Accordingly, IT IS ORDERED that, pursuant to Section 258 of the Communications Act of 1934, as amended, 47 U.S.C.
258, and Sections 0.141, 0.361 and 1.719 of the Commission
s rules, 47 C.F.R.
0.141, 0.361, 1.719, the complaints filed against Central Telecom Long Distance, Inc., ARE GRANTED.
IT IS FURTHER ORDERED that, pursuant to section 64.1170(d) of the Commission
s rules, 47 C.F.R.
64.1170(d), Complainants are entitled to absolution for the charges incurred during the first thirty days after the unauthorized change occurred and neither the Central Telecom nor the authorized carriers may pursue any collection against Complainants for those charges.
IT IS FURTHER ORDERED that this Order is effective upon release.
FEDERAL COMMUNICATIONS COMMISSION
Nancy A. Stevenson, Deputy Chief
Consumer Policy Division
Consumer & Governmental Affairs Bureau
APPENDIX
INFORMAL
DATE OF DATE OF
AUTHORIZED
COMPLAINT
COMPLAINT
RESPONSE
CARRIER
NUMBER
11-S003102
February 7, 2011
March 11, 2011
Windstream
11-S3134322
June 2, 2011
July 7, 2011
Verizon
See Appendix.
See 47 C.F.R.
64.1100
64.1190.
47 U.S.C.
258(a); Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat. 56 (1996); Implementation of the Subscriber Carrier Selection Changes Provisions of the Telecommunications Act of 1996; Policies and Rules Concerning Unauthorized Changes of Consumers
Long Distance Carriers, CC Docket No. 94-129, Second Report and Order and Further Notice of Proposed Rule Making, 14 FCC Rcd 1508 (1998) (Section 258 Order), stayed in part, MCI WorldCom v. FCC, No. 99-1125 (D.C. Cir. May 18, 1999); First Order on Reconsideration, 15 FCC Rcd 8158 (2000); stay lifted, MCI WorldCom v. FCC, No. 99-1125 (D.C. Cir. June 27, 2000); Third Report and Order and Second Order on Reconsideration, 15 FCC Rcd 15996 (2000), Errata, DA No. 00-2163 (rel. Sept. 25, 2000), Erratum, DA No. 00-2192 (rel. Oct. 4, 2000), Order, FCC 01-67 (rel. Feb. 22, 2001); Third Order on Reconsideration and Second Further Notice of Proposed Rule Making, 18 FCC Rcd 5099 (2003); Order, 18 FCC Rcd 10997 (2003); Fourth Report and Order, 23 FCC Rcd 493 (2008). Prior to the adoption of Section 258, the Commission had taken various steps to address the slamming problem. See, e.g., Policies and Rules Concerning Unauthorized Changes of Consumers' Long Distance Carriers, CC Docket No. 94-129, Report and Order, 10 FCC
47 U.S.C.
258(a).
See 47 C.F.R.
64.1120.
47 U.S.C.
258(a).
See 47 C.F.R.
64.1120(c). Section 64.1130 details the requirements for letter of agency form and content for written or electronically signed authorizations. 47 C.F.R.
64.1130.
See 47 C.F.R.
64.1140, 64.1160. Any charges imposed by the unauthorized carrier on the subscriber for service provided after this 30-day period shall be paid by the subscriber to the authorized carrier at the rates the subscriber was paying to the authorized carrier at the time of the unauthorized change. Id.
See 47 C.F.R.
64.1140, 64.1170.
See 47 U.S.C.
See Appendix.
47 C.F.R.
1.719 (Commission procedure for informal complaints filed pursuant to Section 258 of the Act); 47 C.F.R.
64.1150 (procedures for resolution of unauthorized changes in preferred carrier).
See Appendix.
See 47 C.F. R.
64.1120(c)(3)(iii).
Cf. Consumer Telcom, Inc., Order on Reconsideration, 27 FCC Rcd 5340 (CGB 2012) (
the verifier
s question,
Do you have authority to make changes to your long distance service?
did not confirm that the person was authorizing a change that would result in receiving service from a different carrier
See Fourth Report and Order, 23 FCC Rcd 493 (2008)(emphasis added); see also 47 C.F.R.
64.1120(c)(3)(iii).
If either Complainant is unsatisfied with the resolution of this complaint, such Complainant may file a formal complaint with the Commission pursuant to Section 1.721 of the Commission
s rules, 47 C.F.R.
1.721. Such filing will be deemed to relate back to the filing date of such Complainant
s informal complaint so long as the formal complaint is filed within 45 days from the date this order is mailed or delivered electronically to such Complainant. See 47 C.F.R.
1.719.
47 C.F.R.
64.1170(b).
See 47 C.F.R.
64.1170(c).
See 47 C.F.R.
64.1170(e).
Federal Communications Commission
DA 13-1063
PAGE
PAGE
Federal Communications Commission
DA 13-1063
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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of
Central Telecom Long Distance, Inc.
Complaints Regarding
Unauthorized Change of
Subscriber
s Telecommunications Carrier
IC Nos. 11-S003102
11-S3134322
Adopted: May 8, 2013
Released: May 10, 2013
By the Deputy Chief, Consumer Policy Division, Consumer & Governmental Affairs Bureau:
In this Order, we consider the complaints
alleging that Central Telecom Long Distance, Inc., (Central Telecom) changed Complainants
telecommunications service providers without obtaining authorization and verification from Complainants in violation of the Commission
s rules.
We conclude that Central Telecom
s actions did result in unauthorized changes in Complainants
telecommunications service providers and we grant Complainants
complaints.
In December 1998, the Commission released the Section 258 Order in which it adopted rules to implement Section 258 of the Communications Act of 1934 (Act), as amended by the Telecommunications Act of 1996 (1996 Act).
Section 258 prohibits the practice of
slamming,
the submission or execution of an unauthorized change in a subscriber
s selection of a provider of telephone exchange service or telephone toll service.
In the Section 258 Order, the Commission adopted aggressive new rules designed to take the profit out of slamming, broadened the scope of the slamming rules to encompass all carriers, and modified its existing requirements for the authorization and verification of preferred carrier changes. The rules require, among other things, that a carrier receive individual subscriber consent before a carrier change may occur.
Pursuant to Section 258, carriers are absolutely barred from changing a customer's preferred local or long distance carrier without first complying with one of the Commission's verification procedures.
Specifically, a carrier must: (1) obtain the subscriber's written or electronically signed authorization in a format that meets the requirements of
Section 64.1130; (2) obtain confirmation from the subscriber via a toll-free number provided exclusively for the purpose of confirming orders electronically; or (3) utilize an independent third party to verify the subscriber's order.
The Commission also has adopted liability rules. These rules require the carrier to absolve the subscriber where the subscriber has not paid his or her bill. In that context, if the subscriber has not already paid charges to the unauthorized carrier, the subscriber is absolved of liability for charges imposed by the unauthorized carrier for service provided during the first 30 days after the unauthorized change.
Where the subscriber has paid charges to the unauthorized carrier, the Commission
s rules require that the unauthorized carrier pay 150% of those charges to the authorized carrier, and the authorized carrier shall refund or credit to the subscriber 50% of all charges paid by the subscriber to the unauthorized carrier.
Carriers should note that our actions in this order do not preclude the Commission from taking additional action, if warranted, pursuant to Section 503 of the Act.
We received Complainants
complaints alleging that Complainants
telecommunications service providers had been changed to Central Telecom without Complainants
authorization.
Pursuant to Sections 1.719 and 64.1150 of our rules,
we notified Central Telecom of the complaints and Central Telecom responded.
Central Telecom states that authorizations were received and confirmed through third party verifications (TPVs). The Commission
s rules require that the verification elicit, amongst other things, confirmation that the person on the call is
authorized to make the carrier change.
We have reviewed the TPVs that Central Telecom submitted with its responses and, in each case, the verifier instead asks the person on the call
do you have the authority to make changes to your long distance service?
A switch from one carrier to another carrier differs from merely making changes to the customer
s existing service.
As we emphasized in the Fourth Report and Order,
any description of the carrier change transaction
shall not be misleading
and verifiers should convey explicitly that
the consumers will have authorized a carrier change, and not for instance an upgrade in existing service (emphasis added).
We find that Central Telecom
s actions were in violation of our carrier change rules, and we discuss Central Telecom
s liability below.
Pursuant to Section 64.1170(b) our rules, Central Telecom must forward to the authorized carriers an amount equal to 150% of all charges paid by the subscriber to Central Telecom.
According to the complaints, Central Telecom must forward to the authorized carriers the amounts, along with copies of any telephone bills issued from the company to the Complainants.
Within ten days of receipt of this amount, the authorized carriers shall provide a refund or credit to Complainants in the amount of 50% of all charges paid by Complainants to Central Telecom. Complainants has the option of asking the authorized carriers to re-rate Central Telecom
s charges based on the authorized carriers rates and, on behalf of Complainants, seek from Central Telecom, any re-rated amount exceeding 50% of all charges paid by the Complainants to Central Telecom. The authorized carriers must also send a notice to the Commission, referencing this Order, stating that is has given a refund or credit to Complainants.
If the authorized carriers have not received the reimbursement required from Central Telecom within 45 days of the release of this Order, the authorized carriers must notify the Commission and Complainants accordingly. The authorized carriers also must notify the Complainant of his or her right to pursue a claim against Central Telecom for a refund of all charges paid to Central Telecom.
Accordingly, IT IS ORDERED that, pursuant to Section 258 of the Communications Act of 1934, as amended, 47 U.S.C.
258, and Sections 0.141, 0.361 and 1.719 of the Commission
s rules, 47 C.F.R.
0.141, 0.361, 1.719, the complaints filed against Central Telecom Long Distance, Inc., ARE GRANTED.
IT IS FURTHER ORDERED that, pursuant to section 64.1170(d) of the Commission
s rules, 47 C.F.R.
64.1170(d), Complainants are entitled to absolution for the charges incurred during the first thirty days after the unauthorized change occurred and neither the Central Telecom nor the authorized carriers may pursue any collection against Complainants for those charges.
IT IS FURTHER ORDERED that this Order is effective upon release.
FEDERAL COMMUNICATIONS COMMISSION
Nancy A. Stevenson, Deputy Chief
Consumer Policy Division
Consumer & Governmental Affairs Bureau
APPENDIX
INFORMAL
DATE OF DATE OF
AUTHORIZED
COMPLAINT
COMPLAINT
RESPONSE
CARRIER
NUMBER
11-S003102
February 7, 2011
March 11, 2011
Windstream
11-S3134322
June 2, 2011
July 7, 2011
Verizon
See Appendix.
See 47 C.F.R.
64.1100
64.1190.
47 U.S.C.
258(a); Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat. 56 (1996); Implementation of the Subscriber Carrier Selection Changes Provisions of the Telecommunications Act of 1996; Policies and Rules Concerning Unauthorized Changes of Consumers
Long Distance Carriers, CC Docket No. 94-129, Second Report and Order and Further Notice of Proposed Rule Making, 14 FCC Rcd 1508 (1998) (Section 258 Order), stayed in part, MCI WorldCom v. FCC, No. 99-1125 (D.C. Cir. May 18, 1999); First Order on Reconsideration, 15 FCC Rcd 8158 (2000); stay lifted, MCI WorldCom v. FCC, No. 99-1125 (D.C. Cir. June 27, 2000); Third Report and Order and Second Order on Reconsideration, 15 FCC Rcd 15996 (2000), Errata, DA No. 00-2163 (rel. Sept. 25, 2000), Erratum, DA No. 00-2192 (rel. Oct. 4, 2000), Order, FCC 01-67 (rel. Feb. 22, 2001); Third Order on Reconsideration and Second Further Notice of Proposed Rule Making, 18 FCC Rcd 5099 (2003); Order, 18 FCC Rcd 10997 (2003); Fourth Report and Order, 23 FCC Rcd 493 (2008). Prior to the adoption of Section 258, the Commission had taken various steps to address the slamming problem. See, e.g., Policies and Rules Concerning Unauthorized Changes of Consumers' Long Distance Carriers, CC Docket No. 94-129, Report and Order, 10 FCC
47 U.S.C.
258(a).
See 47 C.F.R.
64.1120.
47 U.S.C.
258(a).
See 47 C.F.R.
64.1120(c). Section 64.1130 details the requirements for letter of agency form and content for written or electronically signed authorizations. 47 C.F.R.
64.1130.
See 47 C.F.R.
64.1140, 64.1160. Any charges imposed by the unauthorized carrier on the subscriber for service provided after this 30-day period shall be paid by the subscriber to the authorized carrier at the rates the subscriber was paying to the authorized carrier at the time of the unauthorized change. Id.
See 47 C.F.R.
64.1140, 64.1170.
See 47 U.S.C.
