*Pages 1--6 from Microsoft Word - 27850.doc* Federal Communications Commission DA 03- 1595 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of AT& T Corporation Complaints Regarding Unauthorized Change of Subscriber’s Telecommunications Carrier ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) IC Nos. 01- S53895 02- S66693 02- S67109 02- S67590 02- S69272 02- S71408 02- S71681 02- S73459 02- S73462 02- S73480 02- S74566 02- S76229 02- S76334 02- S76594 02- S76844 02- S76845 02- S76847 02- S76997 02- S77072 02- S79144 02- S80466 02- S80487 02- S80845 02- S81042 02- S81613 02- S81950 02- B0006393 02- B0007222 02- B0008125 03- S82140 03- S82166 03- S82171 03- S82204 ORDER Adopted: May 12, 2003 Released: May 15, 2003 By the Acting Deputy Chief, Policy Division, Consumer & Governmental Affairs Bureau: 1 Federal Communications Commission DA 03- 1595 2 1. In this Order, we consider the complaints filed by Complainants 1 alleging that AT& T Corporation (AT& T) changed Complainants’ telecommunications service providers without obtaining authorization and verification from Complainants’ in violation of the Commission’s rules. 2 We conclude that AT& T’s actions did not result in an unauthorized change in Complainants’ telecommunications service providers and we deny Complainants’ complaint. 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). 3 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. 4 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. 5 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. 6 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) obtains confirmation from the subscriber via a toll- free number provided exclusively for the purpose of confirming orders electronically; or (3) utilize an 1 See Appendix A. 02- S67590 is a duplicate of 02- S67109. 2 See 47 C. F. R. §§ 64.1100 – 64.1190. 3 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 Company v. FCC, No. 99- 1125 (D. C. Cir. May 18, 1999); First Order on Reconsideration, 15 FCC Rcd 8158 (2000); stay lifted, MCI Company 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). 4 47 U. S. C. § 258( a). 5 See 47 C. F. R. § 64.1120. 6 47 U. S. C. § 258( a). 2 Federal Communications Commission DA 03- 1595 3 independent third party to verify the subscriber's order. 7 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. 8 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. 9 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. 10 4. We received Complainants’ complaints alleging that Complainants’ telecommunications service providers had been changed without Complainants’ authorization. 11 Pursuant to Sections 1.719 and 64.1150 of our rules, 12 we notified AT& T of the complaints and AT& T responded. 13 We find that AT& T has produced clear and convincing evidence of a valid authorized carrier change by Complainants. 14 Therefore, we find that AT& T’s actions did not result in an unauthorized change in Complainants’ telecommunications service. 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 filed by Complainants against AT& T Corporation ARE DENIED. 7 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. 8 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. 9 See 47 C. F. R. §§ 64.1140, 64.1170. 10 See 47 U. S. C. § 503. 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. § 64.1150( d). 15 If Complainant is unsatisfied with the resolution of this complaint, 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 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. 3 Federal Communications Commission DA 03- 1595 4 FEDERAL COMMUNICATIONS COMMISSION Nancy A. Stevenson, Acting Deputy Chief Policy Division Consumer & Governmental Affairs Bureau APPENDIX A INFORMAL DATE OF DATE OF 4 Federal Communications Commission DA 03- 1595 5 COMPLAINT COMPLAINT RESPONSE NUMBERS 01- S53895 May 14, 2001 July 9, 2001 02- S66693 December 17, 2001 March 1, 2002 02- S69272 March 6, 2002 April 26, 2002 02- S71408 March 20, 2002 June 7, 2002 02- S71681 March 28, 2002 July 3, 2002 02- S73459 March 8, 2002 July 13, 2002 02- S73462 February 25, 2002 July 16, 2002 02- S73480 April 11, 2002 June 26, 2002 02- S74566 January 16, 2002 July 17, 2002 02- S67109 January 3, 2002 February 20, 2002 02- S76229 May 29, 2002 July 18, 2002 02- S76334 May 20, 2002 July 23, 2002 02- S76594 May 15, 2002 July 17, 2002 02- S76844 June 10, 2002 August 15, 2002 02- S76845 June 10, 2002 August 8, 2002 02- S76847 June 11, 2002 August 14, 2002 02- S76997 June 11, 2002 August 22, 2002 02- S77072 March 13, 2002 August 28, 2002 02- S79144 June 22, 2002 September 19, 2002 02- S80466 September 19, 2002 October 29, 2002 02- S80487 September 23, 2002 October 25, 2002 02- S80845 October 9, 2002 November 18, 2002 5 Federal Communications Commission DA 03- 1595 6 02- S81042 October 1, 2002 December 4, 2002 02- S81613 November 25, 2002 December 31, 2002 02- S81950 December 23, 2002 February 4, 2003 02- B0006393 September 10, 2002 November 21, 2002 02- B0007222 August 26, 2002 November 22, 2002 02- B0008125 October 7, 2002 December 16, 2002 03- S82140 November 5, 2002 March 5, 2003 03- S82166 December 16, 2002 February 24, 2003 03- S82171 December 17, 2002 February 28, 2003 03- S82204 December 30, 2002 February 26, 2003 6