*Pages 1--4 from Microsoft Word - 29718* Federal Communications Commission DA 03- 2438 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of Sprint Communications Company Complaint Regarding Unauthorized Change of Subscriber’s Telecommunications Carrier ) ) ) ) ) ) ) IC No. 01- S50275 01- S58206 01- S63683 01- S65303 01- S65758 01- S66055 01- S66332 02- S71623 02- S71624 02- S71643 02- S71940 02- S80456 02- S80570 02- S81485 ORDER Adopted: July 21, 2003 Released: July 25, 2003 By the Acting Deputy Chief, Policy Division, Consumer & Governmental Affairs Bureau: 1. In this Order, we consider the complaint 1 alleging that Sprint Communications Company (Sprint) changed Complainants’ telecommunications service provider( s) without obtaining authorization and verification from each Complainant in violation of the Commission’s rules. 2 We conclude that Sprint’s actions did not result in an unauthorized change in Complainants’ telecommunications service provider 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 1 See Appendix A. 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 (continued….) 1 Federal Communications Commission DA 03- 2438 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. 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) 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. 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 (Continued from previous page) 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). 4 47 U. S. C. § 258( a). 5 See 47 C. F. R. § 64.1120. 6 47 U. S. C. § 258( a). 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. 2 Federal Communications Commission DA 03- 2438 3 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’ service provider( s) had been changed without Complainants’ authorization. Pursuant to Sections 1.719 and 64.1150 of our rules, 11 we notified Sprint of the complaints and Sprint responded. 12 Based on information obtained by each Complainant’s local exchange carrier, we find that Sprint did not violate our carrier change rules. 13 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 Complaint filed by Complainants against Sprint ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Nancy A. Stevenson, Acting Deputy Chief Policy Division Consumer & Governmental Affairs Bureau 10 See 47 U. S. C. § 503. 11 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). 12 See Appendix A. 13 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 Complainants’ 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- 2438 4 APPENDIX A INFORMAL COMPLAINT NUMBER 01- S50275 DATE OF COMPLAINT April 23, 2001 DATE OF CARRIER RESPONSE June 25, 2001 NAME OF AUTHORIZED CARRIER AT& T Corp. 01- S58206 April 13, 2001 September 6, 2002 Not Reported 01- S63683 August 2, 2001 December 11, 2001 PowerNet Global 01- S65303 September 4, 2001 September 6, 2001 Not Reported 01- S65758 September 24, 2001 January 18, 2002 Qwest 01- S66055 October 26, 2001 January 4, 2002 TTI National 01- S66332 October 17, 2001 March 1, 2002 WorldCom 02- S71623 April 3, 2002 June 17, 2002 WorldCom 02- S71624 April 4, 2002 June 17, 2002 AT& T Corp. 02- S71643 January 23, 2002 June 12, 2002 WorldCom 02- S71940 March 5, 2002 June 12, 2002 LDMI 02- S80456 September 10, 2002 November 8, 2002 AT& T Corp. 02- S80570 September 19, 2002 November 15, 2002 CTI 02- S81485 November 5, 2002 January 7, 2003 WorldCom 4