Telephone Slamming

January 1999

Customers have the right to use any telephone carrier they choose and to change carriers whenever they wish. It is important for customers to select their own telephone company because different companies charge different rates.

"Slamming," or switching a consumer's telephone carrier without his or her knowledge or consent, is prohibited by the FCC's rules. The Commission enforces these rules by investigating individual complaints and patterns of slamming practices and punishes those who slam.

Anti-Slamming Rules

In December 1998, the FCC adopted new anti-slamming rules. The new rules take the profit out of slamming by excusing customers who have been slammed from having to pay for some slamming charges. Under the new rules, any carrier that a consumer calls to report being slammed must inform the consumer that he or she is not required to pay any slamming charges incurred for the first 30 days after the unauthorized switch. If the consumer fails to notice that he or she was slammed and has already paid the bill of the slamming carrier, the unauthorized carrier is required to remit those payments to the authorized carrier. After receiving that amount, the authorized carrier shall issue the consumer a refund or a credit of any amount that he or she paid in excess of the charges they would have paid to the authorized carrier.

The FCC's new rules also strengthen the verification procedures used by carriers to confirm telephone carrier switches. In addition, the FCC adopted procedures to regulate "freezes," which are services offered by local telephone carriers that enable consumers to protect themselves from slamming. If a consumer asks the local telephone carrier to place a freeze on his or her account, generally no carrier will be able to make changes to that account unless and until a consumer expressly agrees to lift the freeze. The FCC's new rules will go into effect in April of 1999.

In addition, the Commission unveiled a series of new initiatives to make it quicker and easier for consumers to file slamming complaints and to speed their resolution. The FCC is initiating a web site for consumers to file complaints electronically, and eventually will permit consumers to file complaints over the phone.

Letters of Agency

FCC rules require a long distance company to obtain a customer's authorization in order to change his or her long distance service. One method of obtaining this authorization is by a Letter of Agency (LOA), provided by a long distance company, in which the customer indicates, in writing, that he or she wishes to switch long distance companies.

The LOA MUST be separate or severable from inducements such as prizes and contests. The LOA provided by the carrier must be limited strictly to authorizing a change in long distance carrier and it must be clearly identified as a LOA authorizing the change. The LOA must also include: the subscriber's billing name and address and each telephone number to be covered by the order to change the subscriber's long distance company; a statement that the subscriber intends to change from his or her current long distance company to this new company; a statement that the subscriber designates this new carrier to act as the agent for this change; and a statement that the subscriber understands that there may be a charge for this change.

The LOA must be written in clear and unambiguous language and the print must be of sufficient size and readable style, generally comparable in type style and size to the promotional materials, and must make clear to the consumer that the document, when signed, would change his or her long distance carrier. Only the name of the long distance carrier setting the consumer's rates can appear on the letter of authorization. The LOA must contain full translations if it uses more than one language. The rule also apply to letters of agency sent to businesses.

Advertising promotions that use "checks" are exempt from the separate or severable requirement but must meet specific guidelines. Such a check must contain the required letter of agency language and the necessary information to make it a negotiable instrument, and shall not contain any other promotional language or material. The carriers must place the required letter of agency language near the signature line on the back of the check. In addition, the carriers must print on the front of the check, in easily readable, bold-faced type, a notice that the consumer is authorizing a change in his or her long distance carrier.

Rules To Protect Consumers Against Long Distance Service Generated by Telemarketers

For long distance service generated by telemarketing, a Letter of Agency may not be necessary. Before a long distance company can place an order to switch a customer who agreed to sign up in a telemarketing call, that company must use any one of the following methods to verify that the customer authorized the switch:

• Obtain a LOA from the customer. Any LOA used to confirm a telemarketing order must meet the same requirements described above.

• Provide the customer with a toll free (800) number to call to confirm the order to switch long distance companies.

• Have an independent third party verify the customer's authorization to switch.

How to Protect Yourself

• Never sign anything without reading it carefully.

• If you receive a phone call about long distance service and you are not interested in switching your service, be sure to tell the caller that you are not interested in receiving their service.

• If someone sends you a letter or postcard "verifying" that you have switched services, notify them that you did not authorize the change, then call your local telephone company to confirm that you are still with your preferred carrier.

• Read your phone bill carefully every month. If you see any unfamiliar names, or charges you can not identify, call your local phone company and ask about these items.

If You've Been Slammed

• Call your local telephone company. Tell them that you did not order service from the new long distance company, that you would like to be reconnected to your long distance company, and that you want any "change charges" (the charge for switching companies) taken off your telephone bill.

• Call the company that slammed you and let them know that you will only pay the charges your preferred carrier would have imposed. If this carrier will not drop any additional charges, contact the FCC.

• Next, call the long distance company you were switched from and report that you were switched without your permission. Ask to be reconnected. You should not be charged for this reconnection.

• If you are unable to resolve your complaint with the company that switched your service, you can file a complaint with the FCC.

How to File A Complaint With the FCC

The Commission has undertaken a number of initiatives to make it quicker and easier for consumers to file slamming and other telephone-related fraud complaints. Starting in January 1999, consumers will be able to file complaints electronically. Later that year, the FCC will permit consumers to file complaints over the phone, including calls placed to the FCC's toll-free number. Also in 1999, the FCC will establish an electronic interface with carriers to improve industry response time to complaints, as well a as speed FCC resolution of complaints.

You may also continue to file written complaints at the FCC through postal mail. There is no special form to fill out to file a complaint with the FCC. Simply send a letter, in your own words, to the address below. Your complaint letter should include:

• Your name and address, the telephone number that was "slammed," and a telephone number where you can be reached during the business day.

• The names of your local and long distance telephone companies and the long distance company to which you were changed without your knowledge or permission.

• The names and telephone numbers of the telephone company employees that you spoke with in an effort to resolve your complaint and the dates you spoke with them.

• Any other information that you feel would help the FCC to handle your complaint.

• Copies of any documents you have received, such as a bill for changing to the unauthorized long distance company, a contest entry blank, or a check.

Send your complaint to:

Federal Communications Commission
Common Carrier Bureau
Enforcement Division
Consumer Protection Branch
Mail Stop Code 1600A2
2025 M St., NW
Washington, DC 20554