*Pages 1--4 from Microsoft Word - 12216.doc* Federal Communications Commission DA 01- 2348 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of Talk America Complaints Regarding Unauthorized Change of Subscriber’s Telecommunications Carrier ) ) ) ) ) ) ) IC Nos. 01- S43098 01- S43261 01- S43693 01- S46517 01- S47448 01- S47557 01- S48213 01- S48402 01- S49183 01- S49211 01- S50261 01- S52013 01- S52015 01- S53879 01- S55018 01- S55432 01- S55444 01- S56694 ORDER Adopted: October 10, 2001 Released: October 12, 2001 By the Chief, Consumer Information Network Division, Consumer Information Bureau: 1. In this Order, we consider complaints 1 alleging that Talk America 2 (Talk) changed Complainants’ telecommunications service providers without obtaining authorization and verification from Complainants in violation of the Commission’s rules. 3 We conclude that Talk has responded fully to the complaints and has taken appropriate action to resolve the complaints. 2. 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). 4 Section 258 prohibits the practice of 1 See Appendix A. 2 Formerly Talk. Com Holding Corp. 3 See 47 C. F. R. §§ 64.1100 – 64.1190. 4 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 (continued….) 1 Federal Communications Commission DA 01- 2348 2 “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. 5 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. 6 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. 7 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 authorization; (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. 8 3. 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. 9 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. 10 (Continued from previous page) 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); reconsideration pending. 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 Rcd 9560 (1995), stayed in part, 11 FCC Rcd 856 (1995); Policies and Rules Concerning Changing Long Distance Carriers, CC Docket No. 91- 64, 7 FCC Rcd 1038 (1992), reconsideration denied, 8 FCC Rcd 3215 (1993); Investigation of Access and Divestiture Related Tariffs, CC Docket No. 83- 1145, Phase I, 101 F. C. C. 2d 911, 101 F. C. C. 2d 935, reconsideration denied, 102 F. C. C. 2d 503 (1985). 5 47 U. S. C. § 258( a). 6 See 47 C. F. R. § 64.1120. 7 47 U. S. C. § 258( a). 8 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. 9 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. 10 See 47 C. F. R. §§ 64.1140, 64.1170. 2 Federal Communications Commission DA 01- 2348 3 4. We received Complainants’ complaints alleging that Complainants’ telecommunications service providers had been changed to Talk without Complainants’ authorization. 11 Pursuant to section 1.719 and 64.1150 of our rules, 12 we notified Talk of the complaints and Talk responded. 13 Talk states in its responses that it has fully absolved Complainants of all charges assessed by Talk in a manner consistent with the Commission’s liability rules. 14 Based on the information before us, we therefore find that the complaints referenced herein have been resolved. 15 5. 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 16 against Talk ARE RESOLVED. 6. IT IS FURTHER ORDERED that this Order is effective upon release. FEDERAL COMMUNICATIONS COMMISSION Jack L. Forsythe, Chief Consumer Information Network Division Consumer Information Bureau 11 See Appendix A. 12 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). 13 See Appendix A. 14 See 47 C. F. R. § 64.1160. 15 If Complainant is unsatisfied with the resolution of their complaint, Complainant may file a formal complaint with the Commission pursuant to section 1.721 of Commission’s rules, 47 C. F. R. § 1.721. Such filing will be deemed to relate back to the filing date of 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 Complainant. See 47 C. F. R. § 1.719. 16 See Appendix A. 3 Federal Communications Commission DA 01- 2348 4 APPENDIX A INFORMAL COMPLAINT NUMBER DATE OF COMPLAINT DATE OF CARRIER RESPONSE 01- S43098 February 7, 2001 April 4, 2001 01- S43261 February 9, 2001 April 5, 2001 01- S43693 February 18, 2001 April 2, 2001 01- S46517 February 13, 2001 April 13, 2001 01- S47448 March 8, 2001 May 9, 2001 01- S47557 April 2, 2001 May 15, 2001 01- S48213 March 16, 2001 May 21, 2001 01- S48402 April 13, 2001 May 21, 2001 01- S49183 April 23, 2001 June 4, 2001 01- S49211 April 13, 2001 June 1, 2001 01- S50261 April 30, 2001 May 30, 2001 01- S52013 April 27, 2001 June 25, 2001 01- S52015 April 19, 2001 July 2, 2001 01- S53879 March 9, 2001 July 17, 2001 01- S55018 May 17, 2001 July 10, 2001 01- S55432 June 13, 2001 July 24, 2001 01- S55444 June 13, 2001 August 8, 2001 01- S56694 May 11, 2001 August 20, 2001 4